22 U.S.C. § 9621: Authorities relating to provision of support

carry out of 1 the policy of the United States in 1 So in original. The word “of” probably should not appear. section 9611 of this title and the purpose of the Corporation in section 9612 of this title ; mitigate risks to United States taxpayers by sharing risks with the private sector and qualifying sovereign entities through co-financing and structuring of tools; and ensure that support provided under this subchapter is additional to private sector resources by mobilizing private capital that would otherwise not be deployed without such support. The Corporation may make loans or guaranties upon such terms and conditions as the Corporation may determine. Loans and guaranties issued under paragraph (1) may be denominated and repayable in United States dollars or foreign currencies. Foreign currency denominated loans and guaranties should only be provided if the Board determines there is a substantive policy rationale for such loans and guaranties. Loans and guaranties issued under paragraph (1) shall be subject to the requirements of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq.). The Corporation may, as a minority investor, support projects with funds or use other mechanisms for the purpose of purchasing, and may make and fund commitments to purchase, invest in, make pledges in respect of, or otherwise acquire, equity or quasi-equity securities or shares or financial interests of any entity, including as a limited partner or other investor in investment funds, upon such terms and conditions as the Corporation may determine. Support provided under paragraph (1) may be denominated and repayable in United States dollars or foreign currency. Foreign currency denominated support provided by paragraph (1) should only be provided if the Board determines there is a substantive policy rationale for such support. The support for the project would be more likely than not to substantially reduce or overcome the effect of an identified market failure in the country in which the project is carried out. The project would not have proceeded or would have been substantially delayed without the support. The support would meaningfully contribute to transforming local conditions to promote the development of markets, localized workforces, and partner country economic security. The support can be shown to be aligned with commercial partner incentives. The support can be shown to have significant developmental impact and will contribute to long-term commercial sustainability. The support furthers the policy of the United States described in section 9611 of this title . The aggregate amount of support provided under this subsection with respect to any project shall not exceed 40 percent of the aggregate amount of all equity investment made to the project at the time that the Corporation approves support of the project. Support provided pursuant to this subsection shall be limited to not more than 35 percent of the Corporation’s aggregate exposure on the date that such support is provided. The Corporation shall seek to sell and liquidate any support for a project provided under this subsection as soon as commercially feasible, commensurate with other similar investors in the project and taking into consideration the national security interests of the United States. The Corporation shall create a project-specific timetable for support provided under paragraph (1). There is established in the Treasury of the United States a fund to be known as the “Development Finance Corporate Equity Investment Account” (referred to in this division as the “Equity Investment Account”), which shall be administered by the Corporation as a revolving account to carry out the purposes of this section. manage the Equity Investment Account in ways that demonstrate a commitment to pursuing catalytic investments in less developed countries in accordance with section 9612(c)(1) of this title and paragraph (1); and collect data and information about the use of the Equity Investment Account to inform the Corporation’s record of returns on investments and reevaluation of equity investment subsidy rates prior to the termination of the authorities provided under this subchapter. There is authorized to be appropriated to the Equity Investment Account $5,000,000,000 for fiscal years 2026 through 2031. Earnings and proceeds from the sale or redemption of, and fees, credits, and other collections from, the equity investments of the Corporation under the Equity Investment Account shall be retained and deposited into the Fund and shall remain available to carry out this subsection without fiscal year limitation without further appropriation. The Corporation shall ensure that at least 25 percent of its obligations from funds authorized to be appropriated under subparagraph (C) or otherwise made available for the Fund for Corporation projects are rated in the upper 20 percent on the Impact Quotient tier system, or any similar or successor assessment tool, developed pursuant to section 9652(b)(1) of this title . The Corporation may issue insurance or reinsurance, upon such terms and conditions as the Corporation may determine, to private sector entities and qualifying sovereign entities assuring protection of their investments in whole or in part against any or all political risks such as currency inconvertibility and transfer restrictions, expropriation, war, terrorism, civil disturbance, breach of contract, or nonhonoring of financial obligations. In order to carry out the purpose of the Corporation described in section 9612(b) of this title , the Corporation may initiate and support, through financial participation, incentive grant, or otherwise, and on such terms and conditions as the Corporation may determine, feasibility studies for the planning, development, and management of, and procurement for, potential bilateral and multilateral development projects eligible for support under this subchapter, including training activities undertaken in connection with such projects, for the purpose of promoting investment in such projects and the identification, assessment, surveying, and promotion of private investment opportunities, utilizing wherever feasible and effective, the facilities of private investors. share the costs of feasibility studies and other project planning services funded under this subsection; and reimburse the Corporation those funds provided under this section, if the person succeeds in project implementation. for the provision of post-investment technical assistance for existing projects of the Corporation, including programs of financial and advisory support that provide private technical, professional, or managerial assistance in the development of human resources, skills, technology, or capital savings; or notifies the appropriate congressional committees; and is designed to meet an exigent need that is critical to the national security interests of the United States; and could not otherwise be secured utilizing the authorities under this section. The Corporation may, following consultation with the Secretary of State, the Administrator of the United States Agency for International Development, and the heads of other relevant departments or agencies, establish and operate enterprise funds in accordance with this subsection. Nothing in this section shall be construed to make an enterprise fund an agency or establishment of the United States Government, or to make the officers, employees, or members of the Board of Directors of an enterprise fund officers or employees of the United States for purposes of title 5. To promote development of economic freedom and private sectors, including small- and medium-sized enterprises and joint ventures with the United States and host country participants. To facilitate access to credit to small- and medium-sized enterprises with sound business plans in countries where there is limited means of accessing credit on market terms. To promote policies and practices conducive to economic freedom and private sector development. To attract foreign direct investment capital to further promote private sector development and economic freedom. To complement the work of the United States Agency for International Development and other donors to improve the overall business-enabling environment, financing the creation and expansion of the private business sector. To make financially sustainable investments designed to generate measurable social benefits and build technical capacity in addition to financial returns. Funds made available to an enterprise fund shall be expended at the minimum rate necessary to make timely payments for projects and activities carried out under this subsection. Not more than 3 percent per annum of the funds made available to an enterprise fund may be obligated or expended for the administrative expenses of the enterprise fund. shall be appointed by the President after consultation with the chairmen and ranking members of the appropriate congressional committees; and have pursued careers in international business and have demonstrated expertise in international and emerging market investment activities. The majority of the members of the Board of Directors shall be United States citizens who shall have relevant experience relating to the purposes described in paragraph (3). detailing the administrative expenses of the enterprise fund during the year preceding the submission of the report; describing the operations, activities, engagement with civil society and relevant local private sector entities, development objectives and outcomes, financial condition, and accomplishments of the enterprise fund during that year; describing the results of any audit conducted under paragraph (8); and describing how audits conducted under paragraph (8) are informing the operations and activities of the enterprise fund; and publish, on a publicly available internet website of the enterprise fund, each report required by subparagraph (A). The Inspector General of the Corporation shall conduct periodic audits of the activities of each enterprise fund established under this subsection. support the purposes described in paragraph (3); result in profitable private sector investing; and generate measurable social benefits. keeps separate accounts with respect to such support; and maintains such records as may be reasonably necessary to facilitate effective audits under this paragraph. Any funds resulting from any liquidation, dissolution, or winding up of an enterprise fund, in whole or in part, shall be returned to the Treasury of the United States. the date that is 10 years after the date of the first expenditure of amounts from the enterprise fund; or the date on which the enterprise fund is liquidated. Support provided under this subchapter shall be subject to section 2382(c) of this title . The Corporation shall undertake, in cooperation with appropriate departments, agencies, and instrumentalities of the United States as well as private entities and others, to broaden the participation of United States small businesses and cooperatives and other small United States investors in the development of small private enterprise in less developed friendly countries or areas. the amount of insurance and financing provided by the Corporation to such businesses in connection with projects supported by the Corporation; and to the extent such information is available, the involvement of such businesses in procurement activities conducted or supported by the Corporation. The Corporation shall include, in its annual report submitted to Congress under section 9653 of this title , the aggregate data collected under this paragraph, in such form as to quantify the effectiveness of the Corporation’s outreach activities to minority- and women-owned businesses.