Frequently Asked Questions

797. What types of projects would fall within the authorization in 31 CFR §515.575 for microfinancing projects?

Answer

Among other things, the provision for microfinancing projects in section 515.575 of the Cuban Assets Control Regulations (CACR) authorizes the provision of certain financial services to unemployed, underemployed, and low-income Cubans who have little or no access to conventional banks or comparable resources, and which may include a limited return on investment.

In addition, section 515.570(g)(1) of the CACR authorizes remittances to individuals and independent non-governmental entities in Cuba to support authorized microfinancing projects. These provisions would authorize, for example, relatively limited contributions of funds to support individual entrepreneurs in sectors that need access to working capital, investment loans, insurance, or training in order to start or expand their operations.

Please note, effective November 26, 2020, 31 CFR § 515.570 no longer authorizes any transaction relating to the collection, forwarding, or receipt of remittances involving any entity or subentity identified on the State Department’s Cuba Restricted List. Furthermore, 31 CFR § 515.575 and 31 CFR § 515.570(g)(1) do not authorize loans, extensions of credit or other financing related to transactions involving confiscated property the claim to which is owned by a U.S. national, which are prohibited by 31 CFR § 515.208. For additional guidance or fact-specific questions, we encourage you to contact OFAC. 

Date Released
October 26, 2020