22 U.S.C. § 2152A
Section 2152a · Repealed. Pub. L. 108484, 8(a), Dec. 23, 2004, 118 Stat. 3931
Amended 2 times on record
Congress finds and declares that—
(1) access to financial services and the development of microenterprise are vital factors in the stable growth of developing countries and in the development of free, open, and equitable international economic systems;
(2) it is therefore in the best interest of the United States to facilitate access to financial services and assist the development of microenterprise in developing countries;
(3) access to financial services and the development of microenterprises can be supported by programs providing credit, savings, training, technical assistance, business development services, and other financial and non-financial services; and
(4) given the relatively high percentage of populations living in rural areas of developing countries, and the combined high incidence of poverty in rural areas and growing income inequality between rural and urban markets, microenterprise programs should target both rural and urban poor.
(1) In general
In carrying out subchapter I of this chapter, the President is authorized to provide grant assistance for programs to increase the availability of credit and other services to microenterprises lacking full access to capital training, technical assistance, and business development services, through—
(A) grants to microfinance institutions for the purpose of expanding the availability of credit, savings, and other financial services to microentrepreneurs;
(B) grants to microenterprise institutions for the purpose of training, technical assistance, and business development services for microenterprises to enable them to make better use of credit, to better manage their enterprises, and to increase their income and build their assets;
(C) capacity-building for microenterprise institutions in order to enable them to better meet the credit and training needs of microentrepreneurs; and
(D) policy and regulatory programs at the country level that improve the environment for microentrepreneurs and microenterprise institutions that serve the poor and very poor.
(2) Implementation
Assistance authorized under paragraph (1)(A) and (B) shall be provided through organizations that have a capacity to develop and implement microenterprise programs, including particularly—
(A) United States and indigenous private and voluntary organizations;
(B) United States and indigenous credit unions and cooperative organizations; or
(C) other indigenous governmental and nongovernmental organizations.
(3) Targeted assistance
In carrying out sustainable poverty-focused programs under paragraph (1), 50 percent of all microenterprise resources shall be targeted to very poor entrepreneurs, defined as those living in the bottom 50 percent below the poverty line as established by the national government of the country. Specifically, such resources shall be used for—
(A) direct support of programs under this subsection through practitioner institutions that—
(i) provide credit and other financial services to clients who are very poor, with loans in 1995 United States dollars of—
(I) $1,000 or less in the Europe and Eurasia region;
(II) $400 or less in the Latin America region; and
(III) $300 or less in the rest of the world; and
(ii) can cover their costs in a reasonable time period; or
(B) demand-driven business development programs that achieve reasonable cost recovery that are provided to clients holding poverty loans (as defined by the regional poverty loan limitations in subparagraph (A)(i)), whether they are provided by microfinance institutions or by specialized business development services providers.
(4) Support for central mechanisms
The President should continue support for central mechanisms and missions, as appropriate, that—
(A) provide technical support for field missions;
(B) strengthen the institutional development of the intermediary organizations described in paragraph (2);
(C) share information relating to the provision of assistance authorized under paragraph (1) between such field missions and intermediary organizations; and
(D) support the development of nonprofit global microfinance networks, including credit union systems, that—
(i) are able to deliver financial services to poor entrepreneurs through a significant grassroots infrastructure based on market principles; and
(ii) act as wholesale intermediaries providing a range of services to microenterprise retail institutions, including financing, technical assistance, capacity-building, and safety and soundness accreditation.
(5) Limitation
Assistance provided under this subsection may only be used to support microenterprise programs and may not be used to support programs not directly related to the purposes described in paragraph (1).
In order to maximize the sustainable development impact of the assistance authorized under subsection (b)(1) of this section, the Administrator of the agency primarily responsible for administering subchapter I of this chapter shall establish a monitoring system that—
(1) establishes performance goals for such assistance and expresses such goals in an objective and quantifiable form, to the extent feasible;
(2) establishes performance indicators to be used in measuring or assessing the achievement of the goals and objectives of such assistance;
(3) provides a basis for recommendations for adjustments to such assistance to enhance the sustainable development impact of such assistance, particularly the impact of such assistance on the very poor, particularly poor women; and
(4) adopts the widespread use of proven and effective poverty assessment tools to successfully identify the very poor and ensure that they receive needed microenterprise loans, savings, and assistance.
(1) Development and certification
(A) The Administrator of the United States Agency for International Development, in consultation with microenterprise institutions and other appropriate organizations, shall develop no fewer than two low-cost methods for partner institutions to use to assess the poverty levels of their current or prospective clients. The United States Agency for International Development shall develop poverty indicators that correlate with the circumstances of the very poor.
(B) The Administrator shall field-test the methods developed under subparagraph (A). As part of the testing, institutions and programs may use the methods on a voluntary basis to demonstrate their ability to reach the very poor.
(C) Not later than October 1, 2004, the Administrator shall, from among the low-cost poverty measurement methods developed under subparagraph (A), certify no fewer than two such methods as approved methods for measuring the poverty levels of current or prospective clients of microenterprise institutions for purposes of assistance under this section.
(2) Application
The Administrator shall require that, with reasonable exceptions, all organizations applying for microenterprise assistance under this chapter use one of the certified methods, beginning no later than October 1, 2005, to determine and report the poverty levels of current or prospective clients.
Of the funds made available under subchapter I of this chapter, the FREEDOM Support Act, and the Support for East European Democracy (SEED) Act of 1989 [22 U.S.C. 5401 et seq.], including local currencies derived from such funds, there are authorized to be available $155,000,000 for each of the fiscal years 2001 and 2002 and $175,000,000 for fiscal year 2003 and $200,000,000 for fiscal year 2004, to carry out this section.
In this section:
(1) Business development services
The term “business development services” means support for the growth of microenterprises through training, technical assistance, marketing assistance, improved production technologies, and other services.
(2) Microenterprise institution
The term “microenterprise institution” means an institution that provides services, including microfinance, training, or business development services, for microentrepreneurs.
(3) Microfinance institution
The term “microfinance institution” means an institution that directly provides, or works to expand, the availability of credit, savings, and other financial services to microentrepreneurs.
(4) Practitioner institution
The term “practitioner institution” means any institution that provides services, including microfinance, training, or business development services, for microentrepreneurs, or provides assistance to microenterprise institutions.
(5) Very poor
The term “very poor” means those individuals—
(A) living in the bottom 50 percent below the poverty line established by the national government of the country in which those individuals live; or
(B) living on less than the equivalent of $1 per day.
Editorial notes U.S. Code · Office of the Law Revision Counsel
References in Text
This chapter, referred to in subsec.(d)(2), was in the original “this Act”, meaning Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, as amended, known as the Foreign Assistance Act of 1961. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.
The FREEDOM Support Act, referred to in subsec. (e), is Pub. L. 102–511, Oct. 24, 1992, 106 Stat. 3320, as amended, also known as the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992. For complete classification of this Act to the Code, see Short Title note set out under section 5801 of this title and Tables.
The Support for East European Democracy (SEED) Act of 1989, referred to in subsec. (e), is Pub. L. 101–179, Nov. 28, 1989, 103 Stat. 1298, as amended, which is classified principally to chapter 63 (§5401 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5401 of this title and Tables.
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and sections 2348c and 2349aa–5 of this title.
Amendments
2003—Subsec. (a). Pub. L. 108–31, §3(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “Congress finds and declares that—
“(1) the development of microenterprise is a vital factor in the stable growth of developing countries and in the development of free, open, and equitable international economic systems;
“(2) it is therefore in the best interest of the United States to assist the development of microenterprises in developing countries; and
“(3) the support of microenterprise can be served by programs providing credit, savings, training, technical assistance, and business development services.”
Subsec. (b)(3)(A)(i). Pub. L. 108–31, §3(b)(1), substituted “clients” for “entrepreneurs”.
Subsec. (b)(4)(D)(i). Pub. L. 108–31, §3(b)(2)(A), substituted “financial services to poor entrepreneurs” for “very small loans”.
Subsec. (b)(4)(D)(ii). Pub. L. 108–31, §3(b)(2)(B), substituted “microenterprise” for “microfinance”.
Subsec. (c)(4). Pub. L. 108–31, §3(c), added par. (4) and struck out former par. (4) which read as follows: “provides a basis for recommendations for adjustments to measures for reaching the poorest of the poor, including proposed legislation containing amendments to enhance the sustainable development impact of such assistance, as described in paragraph (3).”
Subsec. (d). Pub. L. 108–31, §3(d)(2), added subsec. (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 108–31, §3(d)(1), (e), redesignated subsec. (d) as (e) and inserted “and $175,000,000 for fiscal year 2003 and $200,000,000 for fiscal year 2004” after “fiscal years 2001 and 2002”. Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 108–31, §3(d)(1), redesignated subsec. (e) as (f).
Subsec. (f)(5). Pub. L. 108–31, §3(f), added par. (5).
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.