Various financing options are available to assist U.S. businesses investing overseas. The Government views each project as unique and assesses each transaction individually. All projects seeking Government financing must be commercially and financially sound. A project must be within the demonstrated competence of the proposed management, which must have a proven record of success in the same or a closely related business, as well as a financial risk in the proposed project.
Financing is available through direct loans and loan guaranties. Direct loans are available only for projects sponsored by or involving U.S. businesses. These loans are available to fund an overseas investment, including permanent working capital, fixed assets, and expansion of facilities. Eligible projects must have a beneficial connection to U.S. business and the U.S. economy. Such connections could include, among other things, equity participation (generally 25% of the voting shares), management agreements, or on-going supply arrangements for capital equipment, components, or technology. The minimum amount for a direct loan is $100,000. The term of the loan is normally between 3-7 years.
The minimum amount for a finance-style loan is $100,000. The term of the loan is usually between 3-15 years.
Eligibility:
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EDJ Business Consulting
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My Space Business Networking
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Direct Loans
Generally, the Government tries to identify three sources of
repayment and therefore may use a combination of available
project cash flow, sponsor support and collateral to reach a
sound financing structure with a prudent security package.
Financially sound