Sec. 4. DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES

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## SEC. 4 DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES ###

(a)Findings and Policy Section 251 of the Foreign Assistance Act of 1961 (22 U.S.C. 2211) is amended— ####

(1)in paragraph (1)— #####

(A)by striking “microenterprise” and inserting “micro, small, and medium-sized enterprises”; #####

(B)by striking “and in the development” and inserting “, in the development”; and #####

(C)by inserting “, and in the economic empowerment of the poor, especially women” before the period at the end; ####

(2)in paragraph (2)— #####

(A)by striking “microenterprise” and inserting “micro, small, and medium-sized enterprises”; and #####

(B)by inserting “, particularly enterprises owned, managed, and controlled by women” before the period at the end; ####

(3)in paragraph (3), by striking “microenterprises” and inserting “micro, small, and medium-sized enterprises”; ####

(4)in paragraph (4), by striking “microenterprise” and inserting “micro, small, and medium-sized enterprise”; ####

(5)in paragraph (5)— #####

(A)by striking “should continue” and inserting “should continue and be expanded”; and #####

(B)by striking “microenterprise and microfinance development assistance” and inserting “development assistance for micro, small, and medium-sized enterprises”; and ####

(6)in paragraph (6)— #####

(A)by striking “have been successful” and inserting “have had some success”; #####

(B)by striking “microenterprise programs should” and inserting “development assistance for micro, small, and medium-sized enterprises should”; and #####

(C)by striking “, such as countries in Latin America”. ###

(b)Authorization; Implementation; Targeted Assistance Section 252 of the Foreign Assistance Act of 1961 (22 U.S.C. 2211a) is amended— ####

(1)in subsection (a)— #####

(A)in the matter preceding paragraph (1), by striking “credit, savings, and other services to microfinance and microenterprise clients” and inserting “credit, including the use of innovative credit scoring models, savings, financial technology, financial literacy, education, insurance, property rights, and other services to micro, small, and medium-sized enterprise clients”; #####

(B)in paragraph (1), by striking “microfinance and microenterprise clients” and inserting “micro, small, and 132 STAT. 5513 medium-sized enterprise clients, particularly clients owned, managed, and controlled by women”; #####

(C)in paragraph (2), by striking “microenterprises” and inserting “micro, small, and medium-sized enterprises”; #####

(D)in paragraph (3)— ######

(i)by striking “microfinance and microenterprise institutions” and inserting “financial intermediaries”; ######

(ii)by striking “microfinance and microenterprise clients” and inserting “micro, small, and medium-sized enterprises”; and ######

(iii)by striking “and” at the end; #####

(E)in paragraph (4)— ######

(i)by striking “microfinance and microenterprise clients and institutions” and inserting “micro, small, and medium-sized enterprises, financial intermediaries, and capital markets”; and ######

(ii)by striking “the poor and very poor.” and inserting “the poor and very poor, especially women;”; and #####

(F)by adding at the end the following: > > #### “(5) > > assistance for the purpose of promoting the economic empowerment of women, including through increased access to financial resources and improving property rights, inheritance rights, and other legal protections; and > > > #### “(6) > > assistance for the purpose of scaling up evidence-based graduation approaches, which include targeting the very poor and households in ultra-poverty, consumption support, promotion of savings, financial literacy, skills training, and asset transfers.” > ; ####

(2)in subsection (b)— #####

(A)by amending paragraph

(1)to read as follows: > > #### “(1) In general > > There is authorized to be established within the Agency an office to support the Agency’s efforts to broaden and deepen local financial markets, expand access to appropriate financial products and services, and support the development of micro, small and medium-sized enterprises. The Office shall be headed by a Director who shall possess technical expertise and ability to offer leadership in the field of financial sector development.” > ; #####

(B)in paragraph (2)— ######

(i)by amending subparagraph

(B)to read as follows: > > ##### “(B) Use of central funding mechanisms > > In order to ensure that assistance under this title is distributed effectively and efficiently, the office shall provide coordination and support for field-implemented programs, including through targeted core support for micro, small, and medium-sized enterprises and local financial markets.” > ; and ######

(ii)in subparagraph (C), in the matter preceding clause (i)— ######

(I)by inserting “, particularly by protecting the use and funding of local organizations in countries in which the Agency invests,” after “and sustainability”; and ######

(II)by inserting “, especially women” after “the poor and very poor”; and #####

(C)by striking paragraph (3); and ####

(3)in subsection (c), by striking “ subsection (a), 50 percent of all microenterprise resources ” and all that follows and inserting the following: > “subsection (a)— > > > #### “(1) > > 50 percent of all micro, small, and medium-sized enterprise resources shall be targeted to activities that reach the very poor; and > > > #### “(2) > > 50 percent of all small and medium-sized enterprise resources shall be targeted to activities that reach enterprises owned, managed, and controlled by women.” > . ###

(c)Monitoring System Section 253(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2211b(b)) is amended— ####

(1)in paragraph (1), by inserting “, including goals on a gender disaggregated basis, such as improvements in employment, access to financial services, education, enterprise development, earnings and control over income, and property and land rights,” after “performance goals”; ####

(2)in paragraph (2), by striking “include performance indicators to be used in measuring or assessing the achievement” and inserting “incorporate Agency planning and reporting processes and indicators to measure or assess the achievement”; and ####

(3)by striking paragraph (4). ###

(d)Poverty Measurement Methods Section 254 of the Foreign Assistance Act of 1961 (22 U.S.C. 2211c) is amended to read as follows: > > ## “SEC. 254 POVERTY MEASUREMENT METHODS > > “The Administrator of the Agency, in consultation with financial intermediaries and other appropriate organizations, should have in place at least 1 method for implementing partners to use to assess poverty levels of their current incoming or prospective clients.” > . ###

(e)Additional Authorities Section 255 of the Foreign Assistance Act of 1961 (22 U.S.C. 2211d) is amended— ####

(1)by striking “assistance for microenterprise development assistance” and inserting “development assistance for micro, small, and medium-sized enterprises”; and ####

(2)by striking “and, to the extent applicable” and all that follows and inserting a period. ###

(f)Microenterprise Development Credits Section 256 of the Foreign Assistance Act of 1961 (22 U.S.C. 2212) is amended— ####

(1)in the section heading, by striking “microenterprise development credits” and inserting “development credits for micro, small, and medium-sized enterprises”; ####

(2)in subsection (a)— #####

(A)in paragraph (1), by striking “micro- and small enterprises” and inserting “micro, small, and medium-sized enterprises”; and #####

(B)in paragraph (2), by striking “microenterprises” and inserting “micro, small, and medium-sized enterprises”; ####

(3)in subsection (b)— #####

(A)in the matter preceding paragraph (1), by striking “microenterprise households lacking full access to credit” and inserting “micro, small, and medium-sized enterprises and households lacking full access to credit and other financial services”; and #####

(B)in paragraphs

(1)and (2), by striking “microfinance institutions” each place such term appears and inserting “financial intermediaries”; ####

(4)in subsection (c), in the matter preceding paragraph (1), by striking “microfinance institutions” and inserting “financial intermediaries”; and ####

(5)in subsections

(c)and (d), by striking “microenterprise households” each place such term appears and inserting “micro, small, and medium-sized enterprises and households”. ###

(g)United States Microfinance Loan Facility Section 257 of the Foreign Assistance Act of 1961 (22 U.S.C. 2213) is amended— ####

(1)in subsection (a)— #####

(A)by striking “Administrator” and inserting “President”; #####

(B)by striking “United States-supported microfinance institutions” and inserting “United States-supported financial intermediaries”; and ####

(2)in subsection (b)— #####

(A)in paragraph (1), by striking “United States-supported microfinance institutions” each place such term appears and inserting “United States-supported financial intermediaries”; and #####

(B)in paragraph (2), by striking “microfinance institutions” and inserting “financial intermediaries”. ###

(h)Contents of Report Section 258(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2214(b)) is amended to read as follows: > > ### “(b) Contents > > To the extent practicable, the report submitted under subsection

(a)should contain the following: > > > #### “(1) > > Information about assistance provided under section 252, including— > > > ##### “(A) > > the amount of each grant or other form of assistance; > > > ##### “(B) > > the name and type of each intermediary and implementing partner organization receiving assistance; > > > ##### “(C) > > the name of each country receiving assistance; and > > > ##### “(D) > > the methodology used to ensure compliance with the targeted assistance requirements under subsection

(c)of such section. > > > #### “(2) > > The percentage of assistance provided under section 252, disaggregated by income level, including for the very poor, and by gender. > > > #### “(3) > > The estimated number of individuals that received assistance under section 252, disaggregated by income level (or an appropriate proxy for income level, including for the very poor), by gender, and by type of assistance. > > > #### “(4) > > The results of the monitoring system required under section 253. > > > #### “(5) > > Information about any method in place to assess poverty levels under section 254.” > . ###

(i)Definitions Section 259 of the Foreign Assistance Act of 1961 (22 U.S.C. 2214a) is amended— ####

(1)in paragraph (3), by striking “Committee on International Relations of the House of Representatives” and inserting “Committee on Foreign Affairs of the House of Representatives”; ####

(2)in paragraph (4), by striking “microenterprises” and inserting “micro, small, and medium-sized enterprises”; ####

(3)in paragraph (6)— #####

(A)in subparagraph (E), by striking “microenterprise institution” and inserting “micro, small, or medium-sized enterprise institution”; and #####

(B)in subparagraph (F), by striking “microfinance institution” and inserting “financial intermediary”; ####

(4)by striking paragraphs

(7)and

(8)and inserting the following: > > #### “(7) Micro, small, and medium-sized enterprise institution > > The term ‘micro, small, and medium-sized enterprise institution’ means an entity that provides services, including finance, training, or business development services, for micro, small, and medium-sized enterprises in foreign countries. > > > #### “(8) Financial intermediary > > The term ‘financial intermediary’ means the entity that acts as the intermediary between parties in a financial transaction, such as a bank, credit union, investment fund, a village savings and loan group, or an institution that provides financial services to a micro, small, or medium-sized enterprise.” > ; ####

(5)by striking paragraph (9); ####

(6)by redesignating paragraphs

(10)through

(14)as paragraphs

(9)through (13), respectively; ####

(7)in paragraph (9), as redesignated, by striking “of microenterprise development”; ####

(8)by amending paragraph (10), as redesignated, to read as follows: > > #### “(10) Practitioner institution > > The term ‘practitioner institution’ means a not-for-profit entity, a financial intermediary, an information and communications technology firm with a mobile money platform, a village and savings loan group, or any other entity that provides financial or business development services authorized under section 252 that benefits micro, small, and medium-sized enterprise clients.” > ; ####

(9)in paragraph (12), as redesignated— #####

(A)in the paragraph heading, by striking “United states-supported microfinance institution” and inserting “United states-supported financial intermediary”; and #####

(B)by striking “United States-supported microfinance institution” and inserting “United States-supported financial intermediary”; and ####

(10)in paragraph (13), as redesignated, by amending subparagraph

(B)to read as follows: > > ##### “(B) > > living below the international poverty line (as defined by the International Bank for Reconstruction and Development and the International Development Association (collectively referred to as the ‘World Bank’)).” > . ###

(j)Technical and Conforming Amendment Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2211 et seq.) is amended in the title heading by striking “MICROENTERPRISE DEVELOPMENT ASSISTANCE” and inserting “DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES”.

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