(1) The monitoring system shall include performance goals for the assistance and expresses such goals in an objective and quantifiable form, to the extent feasible. (2) The monitoring system shall include performance indicators to be used in measuring or assessing the achievement of the performance goals described in paragraph (1) and the objectives of the assistance authorized under section 252. (3) The monitoring system provides a basis for recommendations for adjustments to the assistance to enhance the sustainability and the impact of the assistance, particularly the impact of such assistance on the very poor, particularly poor women. (4) The monitoring system adopts the widespread use of proven and effective poverty assessment tools to successfully identify the very poor and ensure that they receive adequate access to microenterprise loans, savings, and assistance. SEC. 254.360 DEVELOPMENT AND CERTIFICATION OF POVERTY MEAS UREMENT METHODS; APPLICATION OF METHODS. (a) DEVELOPMENT AND CERTIFICATION.— (1) IN GENERAL.-The Administrator of the Agency, in consultation with microenterprise institutions and other appropriate organizations, shall develop no fewer than two low-cost methods for implementing partner organizations to use to assess the poverty levels of their current incoming or prospective clients. The Administrator shall develop poverty indicators that correlate with the circumstances of the very poor. (2) FIELD TESTING.-The Administrator shall field-test the methods developed under paragraph (1). 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. (3) CERTIFICATION.-Not later than April 1, 2005, the Administrator shall, from among the low-cost poverty measurement methods developed under paragraph (1), certify no fewer than two such methods as approved methods for measuring the poverty levels of current, incoming, or prospective clients of microenterprise institutions for purposes of assistance under section 252. (b) APPLICATION.-The Administrator shall require that, with reasonable exceptions, all implementing partner organizations applying for microenterprise assistance under this title use one of the certified methods, beginning not later than October 1, 2006, to determine and report the poverty levels of current, incoming, or prospective clients. SEC. 255.361 ADDITIONAL AUTHORITIES. Notwithstanding any other provision of law, amounts made available for assistance for microenterprise development assistance under any provision of law other than this title may be provided to further the purposes of this title. To the extent assistance described in the preceding sentence is provided in accordance with such sentence, the Administrator of the Agency shall include, as part of the report required under section 258, a detailed description 360 22 U.S.C. 2211c. 361 22 U.S.C. 2211d. of such assistance and, to the extent applicable, the information required by paragraphs (1) through (11) of subsection (b) of such section with respect to such assistance. SUBTITLE B-CREDIT ASSISTANCE 362 SEC. 256.30 (a) FINDINGS AND POLICY.-Congress finds and declares that (1) the development of micro- and small enterprises is a vital factor in the stable growth of developing countries and in the development and stability of a free, open, and equitable international economic system; and (2) it is, therefore, in the best interests of the United States to assist the access to financial services and the development of microenterprises 364 in developing countries and to engage the United States private sector in that process. (b) 365 PROGRAM.-To carry out the policy set forth in subsection (a), the President is authorized to provide assistance to increase the availability of financial services to microenterprise households. lacking full access to credit, including through— (1) loans and guarantees to microfinance institutions for the purpose of expanding the availability of savings and credit to poor and low-income households; (2) training programs for microfinance institutions in order to enable them to better meet the financial services needs of their clients; and 362 Sec. 4(c)(2) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108484; 118 Stat. 3922) inserted subtitle heading. 363 22 U.S.C. 2212. Formerly at sec. 108 (22 U.S.C. 2151f), transferred and redesignated as sec. 256 by sec. 4(a) and (b) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108-484; 118 Stat. 3922). Other legislative references in this note, enacted prior to transfer and redesignation, refer to sec. 108. Formerly titled "Private Sector Revolving Fund"; amended and restated by sec. 106 of the Microenterprise for Self-Reliance Act of 2000 (title I of Public Law 106-309; 114 Stat. 1085) to read "MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS". Subsequently amended by sec. 2(f) of Public Law 108-31 (117 Stat. 775) to read "MICROENTERPRISE DEVELOPMENT CREDITS". Earlier versions of the section were added by the International Security and Development Assistance Authorization Act of 1983 (sec. 101(b)(2) of the Further Continuing Appropriations, 1984; Public Law 98-151; 97 Stat. 972), and by sec. 2211 of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-418; 102 Stat. 1335). Previously, the section authorized up to $18,000,000 in each of fiscal year 1986 and fiscal year 1987 to be deposited in the Private Sector Revolving Fund. Sec. 4 of Public Law 108-31 (117 Stat. 775; 22 U.S.C. 2151f note), as amended, provided the following: "SEC. 4. REPORT TO CONGRESS. "Not later than September 30, 2005, the Administrator of the United States Agency for International Development shall submit to Congress a report that documents the process of developing and applying poverty assessment procedures with its partners.". 364 Sec. 2(a) of Public Law 108-31 (117 Stat. 775) struck out "the development of the enterprises of the poor" and inserted in lieu thereof "the access to financial services and the development of microenterprises". 365 Sec. 2(b) of Public Law 108-31 (117 Stat. 775) amended and restated subsec. (b). It formerly read as follows: "(b) PROGRAM.-To carry out the policy set forth in subsection (a), the President is authorized to provide assistance to increase the availability of credit to micro- and small enterprises lacking full access to credit, including through "(1) loans and guarantees to credit institutions for the purpose of expanding the availability of credit to micro- and small enterprises; "(2) training programs for lenders in order to enable them to better meet the credit needs of microentrepreneurs; and "(3) training programs for microentrepreneurs in order to enable them to make better use of credit and to better manage their enterprises.". (3) training programs for clients in order to enable them t make better use of credit, increase their financial literacy, a to better manage their enterprises to improve their quality life. (c) ELIGIBILITY CRITERIA.-The Administrator of the Agency shall establish criteria for determining which microfinance instit tions 367 described in subsection (b)(1) are eligible to carry out a tivities, with respect to microenterprise households,368 assiste under this section. Such criteria may include the following: (1) The extent to which the recipients of financial services 3 from the entity do not have access to the local formal financial sector. (2) The extent to which the recipients of financial services from the entity are among the poorest people in the country. (3) The extent to which the entity is oriented toward working directly with poor women. (4) The extent to which the entity recovers its cost of lend ing. (5) The extent to which the entity implements a plan to be come financially sustainable. (d) ADDITIONAL REQUIREMENT.-Assistance provided under this section may only be used to support programs for microenterpris households 370 and may not be used to support programs not d rectly related to the purposes described in subsection (b). (e) PROCUREMENT PROVISION.-Assistance may be provided under this section without regard to section 604(a). (f) AVAILABILITY OF FUNDS.— (1) IN GENERAL.—Of the amounts authorized to be available to carry out this part,371 there are authorized to be available such sums as may be necessary for each of the fiscal years 2005 through 2009 372 to carry out this section.373 366 Sec. 4(c)(3)(A) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108-484; 118 Stat. 3922) struck out "Administrator of the agency primarily responsible for a ministering this part" and inserted in lieu thereof "Administrator of the Agency". 367 Sec. 2(c)(1)(A) of Public Law 108-31 (117 Stat. 775) struck out “credit institutions" and serted in lieu thereof "microfinance institutions". 368 Sec. 2(c)(1)(B) of Public Law 108-31 (117 Stat. 775) struck out "micro- and small enter prises" and inserted in lieu thereof "microenterprise households". 369 Sec. 2(c)(2) of Public Law 108-31 (117 Stat. 775) struck out "credit" and inserted in les thereof "financial services". 370 Sec. 2(d) of Public Law 108-31 (117 Stat. 775) struck out "micro- and small enterprise programs" and inserted in lieu thereof "programs for microenterprise households". 371 Sec. 4(c)(3)(B)(i) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108-484; 118 Stat. 3922) struck out "section 131" and inserted in lieu thereof "this part". 372 Sec. 4(c)(3)(B)(ii) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108-484; 118 Stat. 3922) struck out "$1,500,000 for each of fiscal years 2001 through 2004" and inserted in lieu thereof "such sums as may be necessary for each of the fiscal years 2005 through 2009". Previously, sec. 2(e) of Public Law 108-31 (117 Stat. 775) struck out "for each of fiscal years 2001 and 2002" and inserted in lieu thereof "for each of fiscal years 2001 through 2004”. 373 Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2006 (Public Law 109-102; 119 Stat. 2178), provided the following: "DEVELOPMENT CREDIT AUTHORITY "(INCLUDING TRANSFER OF FUNDS) "For the cost of direct loans and loan guarantees provided by the United States Agency for International Development, as authorized by sections 256 and 635 of the Foreign Assistance Act of 1961, up to $21,000,000 may be derived by transfer from funds appropriated by this Act to carry out part I of such Act and under the heading Assistance for Eastern Europe and the Baltic States': Provided, That such funds shall be made available only for micro and small enter prise programs, urban programs, and other programs which further the purposes of part I of he Act: Provided further, That such costs, including the cost of modifying such direct and guarinteed loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as mended: Provided further, That funds made available by this paragraph may be used for the cost of modifying any such guaranteed loans under this Act or prior Acts, and funds used for such costs shall be subject to the regular notification procedures of the Committees on Appropriations: Provided further, That the provisions of section 107A(d) (relating to general provisions applicable to the Development Credit Authority) of the Foreign Assistance Act of 1961, as conained in section 306 of H.R. 1486 as reported by the House Committee on International Relacions on May 9, 1997, shall be applicable to direct loans and loan guarantees provided under this heading: Provided further, That these funds are available to subsidize total loan principal, any portion of which is to be guaranteed, of up to $700,000,000. "In addition, for administrative expenses to carry out credit programs administered by the United States Agency for International Development, $8,000,000, which may be transferred to and merged with the appropriation for Operating Expenses of the United States Agency for International Development: Provided, That funds made available under this heading shall remain available until September 30, 2008.". Sec. 306 of H.R. 1486, as reported by the Committee on International Relations, May 9, 1997 (H.Rept. 105-94), sought to amend the Foreign Assistance Act of 1961 by adding a new sec. 107A to establish the President's authority to use development credit authority where recipients would otherwise not have access to such credit and that credit would be in keeping with U.S. development purposes. Sec. 107A(d), as referred to in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005, would have provided the following, if enacted: "(d) GENERAL PROVISIONS APPLICABLE TO Development CREDIT AUTHORITY.— "(1) POLICY PROVISIONS.-In providing the credit assistance authorized by this section, the President should apply, as appropriate, the policy provisions in this part applicable to development assistance activities. "(2) DEFAULT AND PROCUREMENT PROVISIONS.— "(A) DEFAULT PROVISION.-The provisions of section 620(q) of this Act, or any comparable provisions of law, shall not be construed to prohibit assistance to a country in the event that a private sector recipient of assistance furnished under this section is in default in its payment to the United States for the period specified in such section. "(B) PROCUREMENT PROVISION.-Assistance may be provided under this section without regard to section 604(a) of this Act. "(3) Terms and conditions of credit assistance.-(A) Assistance provided under this section shall be offered on such terms and conditions, including fees charged, as the President may determine. "(B) The principal amount of loans made or guaranteed under this section in any fiscal year, with respect to any single country or borrower, may not exceed $100,000,000. "(C) No payment may be made under any guarantee issued under this section for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible. "(4) FULL FAITH AND CREDIT.-All guarantees issued under this section shall constitute obligations, in accordance with the terms of such guarantees, of the United States of America and the full faith and credit of the United States of America is hereby pledged for the full payment and performance of such obligations to the extent of the guarantee. "(5) CO-FINANCING AND RISK SHARING. "(A) IN GENERAL.—(i) Assistance provided under this section shall be in the form of co-financing or risk sharing. "(ii) Credit assistance may not be provided to a borrower under this section unless the Administrator of the United States Agency for International Development determines that there are reasonable prospects of repayment by such borrower. "(B) ADDITIONAL REQUIREMENT.-The investment or risk of the United States in any one development activity may not exceed 80 percent of the total outstanding investment or risk. "(6) ELIGIBLE BORROWERS.— "(A) IN GENERAL.-In order to be eligible to receive credit assistance under this section, a borrower shall be sufficiently credit worthy so that the estimated costs (as defined in section 502 of the Federal Credit Reform Act of 1990) of the proposed credit assistance for the borrower does not exceed 30 percent of the principal amount of credit assistance to be received. “(B) ADDITIONAL REQUIREMENT.—(i) In addition, with respect to the eligibility of foreign governments as an eligible borrowers under this section, the Administrator of the United States Agency for International Development shall make a determination that the additional debt of the government will not exceed the debt repayment capacity of the government. "(ii) In making the determination under clause (i), the Administrator shall consult, as appropriate, with international financial institutions and other institutions or agencies that assess debt service capacity. "(7) ASSESSMENT OF CREDIT RISK.-(A) The Administrator of the United States Agency for International Development shall use the Interagency Country Risk Assessment System (ICRAS) and the methodology approved by the Office of Management and Budget to assess the cost of risk credit assistance provided under this section to foreign governments. "(B) With respect to the provision of credit to nongovernmental organizations, the Administrator Continued ONUR SLAMES MORFINANCE LOAN FACILITY. E ESTABLISSEMENT - The Samsarar s brzed to estab het & Janet States Mammazane Der Fachry in this section re fered 1 w the Fading pool and manage the risk from nat E Disasters VE V HR TERIZ Sancial crisis, or to each discretionary account and each sem of budget authority described in such subsection and 2) within each such acreont and nem, to each program project, and activity with pregrams projects, and activities as deceated in the appropriation Act or accompanying re ports for the relevans fiscal year covering such account or stem, or for accounts and items not included in appropriation Arts, as delineated in the most recently submitted President's budget. Nic EXCEPTIONS-This section shall not apply 1 to discretionary budget authority that has been designated pursuant to section 402 of H. Con. Res 95 109th Congress, the concurrent resolution on the budget for fiscal year 2006: or 2) to discretionary authority appropriated or otherwise made available to the Department of Veterans Affairs “(d) OMB REPORT-Within 30 days after the date of the enactment of this section the Director of the Office of Management and Budget shall submit to the Committees on Appropriations of the House of Representatives and the Senate a report specifying the account and amount of each rescission made pursuant to this section. 374 Sec. 5(cX1) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108484; 118 Stat. 3922) added subtitle designation 375 22 U.S.C. 2213. Added by sec. 107a) of the Microenterprise for Self-Reliance Act of 2000 (title I of Public Law 106-309, 114 Stat. 1086) as sec. 132 22 USC. 2152b). Transferred and redesignated as sec. 257 by sec. 5(a) and (b) of the Microenterprise Results and Accountability Act of 2004 (Public Law 108-484; 118 Stat. 3922). Sec. 107(b) of Public Law 106-309 provided the following: "(b) REPORT.-Not later than 120 days after the date of the enactment of this Act, the Administrator of the United States Agency for International Development shall submit to the Committee on Foreign Relations of the Senate and the committee on International Relations of the House of Representatives a report on the policies, rules, and regulations of the United States Microfinance Loan Facility, established under section 132 of the Foreign Assistance Act of 1961, as added by subsection (a).". |