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U.S. Code as of:
01/19/04
Section 2151f. Microenterprise development credits
(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 in developing countries and to
engage the United States private sector in that process.
(b) Program
To carry out the policy set forth in subsection (a) of this
section, 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
(3) training programs for clients in order to enable them to
make better use of credit, increase their financial literacy, and
to better manage their enterprises to improve their quality of
life.
(c) Eligibility criteria
The Administrator of the agency primarily responsible for
administering subchapter I of this chapter shall establish criteria
for determining which microfinance institutions described in
subsection (b)(1) of this section are eligible to carry out
activities, with respect to microenterprise households, assisted
under this section. Such criteria may include the following:
(1) The extent to which the recipients of financial services
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
lending.
(5) The extent to which the entity implements a plan to become
financially sustainable.
(d) Additional requirement
Assistance provided under this section may only be used to
support programs for microenterprise households and may not be used
to support programs not directly related to the purposes described
in subsection (b) of this section.
(e) Procurement provision
Assistance may be provided under this section without regard to
section 2354(a) of this title.
(f) Availability of funds
(1) In general
Of the amounts authorized to be available to carry out section
2152a of this title, there are authorized to be available
$1,500,000 for each of fiscal years 2001 through 2004 to carry
out this section.
(2) Coverage of subsidy costs
Amounts authorized to be available under paragraph (1) shall be
made available to cover the subsidy cost, as defined in section
661a(5) of title 2, for activities under this section.
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