Why is DFC important to the United States? DFC advances American foreign policy and American commercial competitiveness. The investments DFC mobilizes serve as stabilizing forces in developing countries around the world, including some of the world’s poorest countries and regions affected by conflict. Investment in these markets also helps American businesses gain footholds in many of the world’s fastest-growing markets.

How does DFC support development in emerging markets? Debt Financing Direct loans and guaranties of up to $1 billion for tenors as long as 25 years, with specific programs targeting small and medium U.S. businesses Equity Investments DFC direct equity investments can provide critical support to companies committed to creating developmental impact Investment Funds Support for emerging market private equity funds to help address the shortfall of investment capital Political Risk Insurance Coverage of up to $1 billion against losses due to currency inconvertibility, government interference, and political violence including terrorism. DFC also offers reinsurance to increase underwriting capacity Technical Development Feasibility studies and technical assistance accelerate project identification and preparation to better attract and support private investment in development outcomes Which projects are eligible for DFC support? All projects DFC supports must be based in countries where DFC is authorized to do business, meet DFC investment standards, and have a strong track record in the industry.

What types of projects does DFC support? DFC supports projects in a variety of industries from critical infrastructure to power generation, healthcare, agriculture, technology, and financial services.

How is DFC different from the Overseas Private Investment Corporation? Key changes include:

Equity Authority In addition to debt financing DFC has the ability to make equity investments, a tool widely used in development finance A Higher Investment Cap DFC has a total investment limit of $60 billion, more than double OPIC’s $29 billion investment cap Technical Assistance and Feasibility Studies DFC has new tools that will enable it to be more proactive in identifying and addressing development needs around the world Increased Cooperation with the State Department and USAID DFC supports and complements other U.S. Government tools that advance development and American foreign policy Strong Focus on Lower-Income Countries DFC is focused on promoting inclusive economic growth in the world’s least developed countries How is DFC’s approach to development different from that of China? DFC supports an economically viable form of private sector-led investment, offering a robust alternative to state-directed investment which often leaves countries saddled with debt.

Does DFC replace grant-based foreign aid? No. DFC's work complements the work of U.S. Government aid programs.

From dfc.gov