The Development Credit Authority (DCA) was a programme within the United States Agency for International Development (USAID) that used to issue loan guarantees which would act as collateral for private loans.
USAID's Development Credit Authority was created in 1999 to mobilize local private capital through the establishment of risk sharing relationships with private financial institutions in countries covered by USAID.
[3] The partial loan guarantees extended by USAID, through the DFC, allowed the U.S. Government to use credit to pursue the development purposes specified under the Foreign Assistance Act (FAA) of 1961, as amended.
These guarantees typically cover up to 50% of the principal of loans to entrepreneurs, Small and medium-sized enterprises, and other projects that advance the U.S. Government's international development objectives.
Credit assistance's been used in areas such as microenterprise and small enterprise, privatization of public services, infrastructure, efficient and renewable energy, and climate change.