Development Credit Authority (DCA)

Overview

USAID’s Development Credit Authority (DCA) guarantee program, established by Congress in 1999, unlocks private, local capital to support lending in critical growth sectors.  Since 2004, USAID/Haiti has supported the provision of financial products and services to under-served and out-of-reach households and enterprises through DCA partial credit guarantees.

Objectives 

DCAs encourage financial institutions to lend to borrowers and sectors of the economy that are perceived as higher risks to generate revenues and create jobs in underserved communities.  

Activities 

The current DCA portfolio consists of 16 agreements with diverse financial institutions, banks, microfinance institutions, and credit unions that support the disbursement of $67 million in credit over a 14-year period. These agreements support credit to smallholder farmers, agricultural cooperatives, micro-, small-, and medium-sized enterprises, and low-to middle-income households, primarily in the U.S. Government-supported development corridors of Cap-Haitian, Saint-Mark and Cul-de-Sac.  

Two agreements—both signed in 2012—focus on providing small housing loans, which do not require mortgages, to low and middle-income households to support the expansion, improvement, or progressive construction of homes, particularly in the U.S. Government-supported corridors. 

Results

  • Since 2004, DCA guarantees have supported 6,779 households and micro-, small-, and medium-sized businesses with access to $23.6 million in credit through the local private sector.
  • In September 2012, USAID signed four DCA agreements for a total of $30 million to increase the supply of credit, primarily to the agriculture, housing, and construction sectors. Seventy-five percent of all loans will be disbursed within the Northern, Saint-Marc, and Cul-de-Sac Corridors, complementing other USAID programs in these priority areas.

 

Last updated: October 25, 2013

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