
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2152a]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
                 SUBCHAPTER I--INTERNATIONAL DEVELOPMENT
 
  Part I--Declaration of Policy; Development Assistance Authorizations
 
Sec. 2152a. Microenterprise development grant assistance


(a) Findings and policy

    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.

(b) Authorization

                           (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 
            entrepreneurs 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 very small loans through a 
            significant grassroots infrastructure based on market 
            principles; and
                (ii) act as wholesale intermediaries providing a range 
            of services to microfinance 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).

(c) Monitoring system

    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) 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).

(d) Level of assistance

    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, to carry out this section.

(e) Definitions

    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.

(Pub. L. 87-195, pt. I, Sec. 131, as added Pub. L. 106-309, title I, 
Sec. 105, Oct. 17, 2000, 114 Stat. 1082.)

                       References in Text

    The FREEDOM Support Act, referred to in subsec. (d), 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. (d), is Pub. L. 101-179, Nov. 28, 1989, 103 Stat. 1298, as 
amended, which is classified principally to chapter 63 (Sec. 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 (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 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.

                         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.

                  Section Referred to in Other Sections

    This section is referred to in section 2151f of this title.
