MIGA’s Small Investment Program (SIP) is designed to facilitate investments into small and medium-size enterprises involved in the finance, agribusiness, manufacturing, and services sectors. The program offers a streamlined approval process, allowing investors to get MIGA coverage in place quickly.
For an investment to be eligible for MIGA coverage, the project enterprise must fulfill two of the following three criteria:
- no more than 300 employees
- total assets not more than $15 million
- total annual sales not more than $15 million
Although the total size of the investment may be larger than $10 million, the application for investment guarantee must be $10 million or less. SIP covers up to 90 percent of the investment for equity and up to 95 percent for debt. SIP guarantees have a term of up to 10 years (three years minimum), with the possibility of an extension, at the end of the original term, of up to five years at MIGA's discretion.
Investments must also meet the basic eligibility requirements under MIGA’s regular guarantee program. MIGA’s environmental and social performance standards also apply to projects under the SIP. Category A projects may not be covered under the SIP.
MIGA’s regular application procedures apply to the SIP program. The approval process should not take longer than eight weeks if the information requested in the definitive application is fully completed and MIGA is supplied with all relevant project documentation.
Once the guarantee proposal has been approved, the investor will receive a contract of guarantee, and on receipt, will have a period of six weeks to sign the contract. If the investor decides not to go ahead within this period, MIGA will terminate the guarantee process.
To avoid delays in the application process, business and financial plans should be in place and financial projections available prior to filing the definitive application.
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