Guide
How are Foreign Military Financing funds disbursed?
A partner does not receive its Foreign Military Financing as cash. commits the funds to an approved purchase, and the partner then asks to advance them against a bill, a or a commercial invoice. Once transferred to the , the money counts as spent and stays available for the case.
How are Foreign Military Financing funds disbursed?
does not generally make approved loan or grant-agreement funds directly available to the borrowing international partners. Rather, the international partners must submit invoice documentation (i.e., an requiring an or a DD Form 645, Billing Statement requesting payment or a commercial invoice) to , along with a request for advance of funds. Once certifies/approves the request, funds are disbursed as appropriate. If an international partner is authorized to use for Direct Commercial Sales (), the borrowing international partners must submit to copies of contracts or purchase orders relating to the commercial purchase and a request for advance of funds.
References
SAMM
- SAMM C9.7.2.10.2.2.1.1
- SAMM C9.7.2.10.2.2.1.3
- SAMM C9.7.2.10.2.3.1 — General Policy.
- SAMM C9.7.2.10.2.3.3 — Requests for Disbursement of Loan Funds.
- SAMM C9.7.2.10.3 — Expenditure of Foreign Military Financing Funds.
- SAMM C9.7.2.10.2.3.2 — Expiration of Disbursement (Federal Financing Bank Loan Commitment) Period.
Related
DSCA — Defense Security Cooperation Agency
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Cooperation Agency (DSCA) →
DFAS-IN — Defense Finance and Accounting Service - Indianapolis
SAMM Acronyms, as of 12 September 2026
Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
Trust Fund
A type of account, designated by law as a “trust fund,” regardless of any other meaning of the term “trust fund.” A trust fund account is usually either a receipt, an expenditure, or a revolving fund account (trust revolving fund account).
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026
Initial Deposit
Funds that are required to cover outlays and/or deliveries that are anticipated to occur before the receipt of the first quarterly payment. These funds must accompany the accepted Letter of Offer and Acceptance.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
DCS — Direct Commercial Sales
SAMM Acronyms, as of 12 September 2026
Military Assistance Program (MAP)
That portion of the United States Security Assistance program authorized by the Foreign Assistance Act of 1961, as amended, which once provided defense articles and services to recipients on a nonreimbursable (grant) basis. Funding for MAP was consolidated under the Foreign Military Financing program beginning in Fiscal Year 1990.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)