§2151t Development Assistance Authority

Summary

The President can give grants and make loans to other countries, regions, groups, or private organizations to help economic development. Loans must be in U.S. dollars and the President sets the terms, including the interest rate. He must think about the borrower’s ability to pay. Interest cannot be below 2% per year for the first ten years, and by no later than ten years after funds are first provided it must be at least 3% per year. Interest also cannot exceed the legal rate in the country where the loan is made. All dollar payments the U.S. gets back from these loans must go into the U.S. Treasury as miscellaneous receipts. Up to $10,000,000 each fiscal year can be used to help U.S. research and education institutions build programs about developing countries. The President must create a Development Loan Committee of federal officials to set lending rules that match U.S. foreign and financial policy. Most members must be appointed by the President with Senate approval unless they already hold jobs appointed that way.