Sec. 3. Findings
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Congress finds the following: The mission of the Corporation is to mobilize investment to advance global development, foreign policy objectives of the United States, and taxpayer interests. Congress established the Corporation to leverage private sector capabilities and to serve as a robust alternative to state-directed investments by authoritarian governments and strategic competitors of the United States. Congress authorized the Corporation— to provide equity financing in order to provide the Corporation with greater flexibility to invest in early- and growth-stage companies, partner with other financial institutions, and enable investees to scale operations more effectively to create greater impact on developments; under section 1421(d) of the BUILD Act of 2018 ( 22 U.S.C. 9621(d) )— to provide insurance and reinsurance of debt for the purposes of furthering United States foreign policy, development, and national security objectives; and to insure debt investments; to collect insurance and reinsurance premiums and pay insurance and reinsurance claims; and to make loans or guaranties upon such terms and conditions as the Corporation may determine under section 1421(b) of the BUILD Act of 2018 ( 22 U.S.C. 9621(b) ) for the purposes of furthering foreign policy, development, and national security objectives of the United States.
Under section 1422(b)(3) of that Act ( 22 U.S.C. 9621(b)(3) ), Congress limited the authority described in paragraph (3)(D) by requiring that for any loan or guaranty to a project, the parties to the project bear the risk of loss in an amount equal to at least 20 percent of the guaranteed support by the Corporation in the project. Congress authorized the Corporation to guaranty 100 percent of an obligation, including a loan, a bond issuance, or a tranche of any such loan or bond in which other parties to the project bear the risk of loss in an amount equal to at least 20 percent of the guaranteed support by the Corporation in the project.
Obstacles to the implementation of the authorities described in paragraph
(3)have constrained the ability of the Corporation to leverage its full capacity to enhance the economic and strategic competitiveness of the United States and to cooperate effectively with foreign partners and the private sector.
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