01 Sep 2014
News

How to Apply

    The Application for Financing lists all required attachments including a detailed business plan and financial projections. A complete application package should establish the project's and investor group's general eligibility, and give OPIC the basis on which it can respond to the amount and basic terms of the requested financing. It should include:

    • a description of the project;
    • the identity, background and audited financial statements of the project's proposed principal owners and management;
    • financial statements of each investor (audited corporate financial statements or certified personal net worth statements of individuals, using the SBA Personal Financial Statement Form
    • planned sources of supply, anticipated output and markets, distribution channels, competition, and the basis for projecting market share;
    • a summary of project costs and anticipated suppliers of capital goods and services;
    • a financial plan, including the sources and uses of funds for the project;
    • pro forma financial statements of the proposed project or corporate borrower and accompanying assumptions; and
    • a description of the contribution the business is expected to make to local economic and social development

    The data prepared and submitted by sponsors to substantiate sources of raw material, technical feasibility and market demand are carefully analyzed together with the financial forecasts.

    Investors seeking political risk protection must register their project, submit a completed insurance application, including all required attachments to the application, such as draft project agreements and a business plan. Small businesses eligible for the insurance wrap do not need to submit an application or any additional information.

    Registration

    Investors are required to register projects with OPIC before the investment has been made or irrevocably committed. Registration is free of charge and, to the extent permitted by law, treated as confidential business information. To register, an investor must submit Form 50 - Request for Registration for Political Risk Insurance. Upon receipt of Form 50, OPIC will send a confirmation letter and information packet. A registration is valid for two years, and may be renewed in one-year increments. Registration of a project is nonbinding, and in no way constitutes a commitment to issue insurance, nor does it indicate that OPIC's Investment Policy Requirements have been met.

    OPIC encourages Investors to complete the Registration (Form 50) and Application (Form 52) using the online Insurance database. To begin this process, please go to the Online Insurance Database .

    Application

    Once the final form of an investment is determined, an investor must submit a completed insurance application.

    The application provides OPIC with detailed information necessary to determine a project's eligibility and underwriting risks. OPIC will charge a retainer fee after the submission of an application in order to proceed with review of the project.

    Insurance Process Milestones

    • Submission of project registration (Form 50)
    • Submission of complete application (Form 52), business plan (if available) and retainer fee
    • Application is assigned to an insurance officer and an OPIC attorney
    • Review and approval by OPIC Insurance Policy Committee
    • Review and approval by OPIC Investment Committee if >$25M
    • Review and approval by OPIC Board of Directors if >$50M
    • Draft insurance contract provided to investor
    • Execution of insurance contract and payment of Premium

    An application package requires the completion and submission of the following forms:

    IMPORTANT--Form 115 - Application for Financing must be completed and submitted through the online application process. To see a template of the application in read-only form, click here --please note that ONLY online applications will be reviewed.

    Sponsor Disclosure Report - Form 129

    OPIC encourages Investors to complete the Registration (Form 50) and Application (Form 52) using the online Insurance database. To begin this process, please go to the Online Insurance Database .

    In addition to the above forms, you must also submit a business plan.

    OPIC strongly recommends that investors contact an OPIC representative to discuss his or her project proposal prior to submitting an application package for OPIC financing. For more information, please contact PFS Finance at 216-629-0001 or email info@pfsfinance.com

    Business Plan

    If you already have a business plan, marketing plan and/or feasibility study, be sure to submit them with your application. Investors seeking more information on how to prepare a business plan can visit the SME Business Guide. If you are not submitting a business plan as a part of your application, we request a detailed description of the business process(es) and/or product to be produced. Having this information from investors facilitates OPIC's review of Investment Policy Requirements.

    Following OPIC's preliminary review and approval, the sponsors may be asked to provide additional economic, financial and technical information. In some instances, OPIC will issue a retainer letter which may indicate that OPIC will need to retain independent consultants to assist in its analysis and review. Such information is essentially that which any board of directors would need before committing its company to an investment. Guidelines for formal applications will be provided, though the type of information to be supplied will vary with the nature of the proposed business.

    The time required to review and approve an application depends on the scope and detail of the data presented, as well as on the complexity of the transaction, and typically varies from two to six months. Priority is given to those projects which best meet OPIC's developmental and foreign policy mandate. In addition, the thoroughness and timeliness with which all the information required by OPIC is developed and submitted is a key determinant of the timeliness of the review process. Approval time may be reduced in corporate financing transactions since there are fewer project issues to be researched and, generally, collateral is located in the United States. Investors are encouraged to consult with OPIC early in the loan process, since simultaneous satisfaction of as many of the above requirements as possible will speed loan approval and disbursement.