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 underserved 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 18 agreements with diverse financial institutions, banks, microfinance institutions, and credit unions that support the disbursement of $57 million in credit over a 12-year period. These agreements partially guarantee loans 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-Haïtien, Saint-Marc, 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 local financial institutions in providing more than 11,000 loans to households and micro-, small-, and medium-sized businesses, for a total of $29 million.
 

Additional Information 

Maximum Credit Disbursements: $57 million
Life of Projects: September 2009 – September 2021
Financial Partners:  Le LEVIER-12 Credit Union members: MCN, SOGEBANK, SOGESOL, SOFIHDES
 
 

 

Last updated: February 01, 2015

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