Review and Approval Process
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.