What Does Foreign Ownership Control and Influence (FOCI) Have To Do With My Small Business?

What is Foreign Ownership Control and Influence (FOCI) and why does it matter? As you begin to build your business and seek board members, leadership, and investments, it is imperative to be mindful of where your partners and investments come from. The United States government understands the importance of allowing foreign investment to strengthen the United States industrial base, but it must balance maintaining critical national security. If your business could have a hand in a future contract requiring Federal Security Clearance, the government will require assurance that your company is not vulnerable to foreign control or influence, and it is wise for you to be mindful of FOCI now in order to avoid issues later.

“A company is considered to be operating under FOCI whenever a foreign interest has power, direct or indirect, whether or not exercised, and whether or not exercisable, to direct or decide matters affecting the management or operations of that company in a manner which may result in unauthorized access to classified information or may adversely affect the performance of classified contracts.”  (Defense Counterintelligence and Security Agency.)

Learn about FOCI and its derivation, and how your company can mitigate future issues in the world of government contracting and obtaining start-up funding, including small business innovation research (SBIR) and small business technology transfer (STTR) contracts and grants from government entities.

To learn more about FOCI, click on the link below to access a previously recorded training session in February 2024. https://uwyo.zoom.us/rec/share/KsSU-8fiDFU-fxgCNv7zkGt31_xkG196R6AwrkgTXKj72-2XHqrIakI5aF-pP9mX.ucjiOAvEo5BS62nr

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About the Author: Sarah Mikesell Growney was raised in Maine but has enjoyed living in and exploring Wyoming for twenty-two years. She loves this great state and is driven to help businesses thrive and grow in Wyoming by accessing government contracts. Sarah was a decade-long business owner, and has experience in marketing, accounting, lobbying, public relations, public policy, grassroots organizing, campaigning, and legal work.