<enum>VI</enum><header>Microenterprise Development Assistance</header> <section id="H2961635F48834B21B25E146ED907CB68"><enum>251.</enum><header>Findings and policy</header><text display-inline="no-display-inline">Congress finds and declares the following:</text> <paragraph display-inline="no-display-inline" id="H0B0B4880891B46119230657DEB42B9F2"><enum>(1)</enum><text>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.</text></paragraph> <paragraph id="H8D18B39E086C441682666F7900ECE267"><enum>(2)</enum><text>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.</text></paragraph> <paragraph id="HBD83B935CB6E44A4AF58AF1CC3BF580"><enum>(3)</enum><text>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 services.</text></paragraph> <paragraph id="HE048FF1B862A4312BD66487ECB3B006C"><enum>(4)</enum><text>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.</text></paragraph> <paragraph id="HCF62BCD288954E2793B72B1074EE4F41"><enum>(5)</enum><text>Microenteprise programs have been successful and should continue to empower vulnerable women in the developing world. Such programs should take into account the risks faced by women who are potential victims of severe forms of trafficking and the need for assistance for women who become victims of severe forms of trafficking, as provided for in section 106(a)(1) of the Trafficking Victims Protection Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/22/7104">22 U.S.C. 7104(a)(1)</external-xref>; <external-xref legal-doc="public-law" parsable-cite="pl/106/386">Public Law 106–386</external-xref>). </text></paragraph></section> <section id="HCA0D8FBA53F04D9EAFA7FEA918C90217"><enum>252.</enum><header>Authorization; Implementation; Targeted Assistance</header> <subsection id="HC2D409317D564B4891453467A4050727"><enum>(a)</enum><header>Authorization</header><text>The President is authorized to provide assistance on a grant basis for programs in developing countries to increase the availability of credit, savings, and other services to microenterprises lacking full access to capital, training, technical assistance, and business development services, through—</text> <paragraph id="H11073C11B9A8403DBE51D5884DC3BC"><enum>(1)</enum><text>grants to microfinance institutions for the purpose of expanding the availability of credit, savings, and other financial services to microentreprise clients;</text></paragraph> <paragraph id="H55A9EA123F6A44FCAC9E6DD59E711B1C"><enum>(2)</enum><text>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;</text></paragraph> <paragraph id="H99BAB98F10DD4EEC9DEC7C1225E395D2"><enum>(3)</enum><text>capacity-building for microenterprise institutions in order to enable them to better meet the credit, savings, and training needs of microentreprise clients; and</text></paragraph> <paragraph id="HCEDC5B719ED2420DB4C78F0008645D95"><enum>(4)</enum><text>policy and regulatory programs at the country level that improve the environment for microentreprise clients and microenterprise institutions that serve the poor and very poor.</text></paragraph></subsection> <subsection id="H260230AA436E4CE4B22100DF05589656"><enum>(b)</enum><header>Implementation</header> <paragraph id="H9CCCE8F0F5824ED890B6A519996BF00"><enum>(1)</enum><header>Office of microenterprise development</header> <subparagraph id="HE475572CE36D4288B000AA973892D400"><enum>(A)</enum><header>Establishment</header><text>There is established within the Agency an Office of Microenterprise Development, which shall be headed by a Director who shall be appointed by the Administrator and who should possess technical expertise and ability to offer leadership in the field of microenterprise development.</text></subparagraph> <subparagraph id="HA1D19DF946214DEABCA61177A95EAC5E"><enum>(B)</enum><header>Duties</header><text>The Office shall coordinate and be responsible for the provision of assistance under this title.</text></subparagraph></paragraph> <paragraph id="HF0601F353BDE4DF0BD0471000028AF56"><enum>(2)</enum><header>Assistance through grants to eligible organizations</header><text>Assistance under subsection (a) shall be provided through grants executed, approved, or reviewed by the Office to eligible implementing partner organizations that have a capacity to develop and implement microenterprise programs.</text></paragraph> <paragraph id="HF3E11C5387F44E66863416B52B976CF2"><enum>(3)</enum><header>Review and approval</header><text>With respect to assistance under subsection (a) that is furnished through field missions of the Agency, the Office shall be responsible for—</text> <subparagraph id="H68617B78C3B549FD87ED96B27A75C51"><enum>(A)</enum><text>reviewing or approving each grant agreement prior to obligation of funds under the agreement in order to ensure that activities to be carried out using such funds are efficacious, technically sound, and suitable for the economic and security climate of the country or region where the activities will be conducted; and</text></subparagraph> <subparagraph id="H083ABF6A22EB489F8D4C7BA813888F00"><enum>(B)</enum><text>approving microenterprise development components of strategic plans of missions, bureaus, and offices of the Agency.</text></subparagraph></paragraph></subsection> <subsection id="HDE822BB324B24AB9ADF7832DE238EE59"><enum>(c)</enum><header>Targeted Assistance</header><text>In carrying out sustainable poverty-focused programs under subsection (a), 50 percent of all microenterprise resources shall be targeted to very poor clients, defined as those individuals 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—</text> <paragraph id="HA1934D9400E8458B9F8536F4F32C63CB"><enum>(1)</enum><text>support of programs under this section through practitioner institutions that—</text> <subparagraph id="H2A5B865353DF4FD1AB9EC4F786969FEC"><enum>(A)</enum><text>provide credit and other financial services to clients who are very poor, with loans in 1995 United States dollars of—</text> <clause id="HA01A6EB88897498AAABE1F283528B1DD"><enum>(i)</enum><text>$1,000 or less in the Europe and Eurasia region;</text></clause> <clause id="H5F7C244B54DB4871ADC02F54E0341D00"><enum>(ii)</enum><text>$400 or less in the Latin America region; and</text></clause> <clause id="H949AC68CB760436CA4EFB4ADA687BD20"><enum>(iii)</enum><text>$300 or less in the rest of the world; and</text></clause></subparagraph> <subparagraph id="H218248E72F794FB2B3BB77D024BA1E4F"><enum>(B)</enum><text>can cover their costs in a reasonable time period; or</text></subparagraph></paragraph> <paragraph id="HE5E4206C260641B98D13587F5D4D04E7"><enum>(2)</enum><text>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 paragraph (1)(A)), whether they are provided by microfinance institutions or by specialized business development services providers.</text></paragraph></subsection> <subsection id="H85C7DB24E89848FBB9F6DA1D4CF3FEA8"><enum>(d)</enum><header>Support for Central Mechanisms</header><text>The Administrator should increase the use of central mechanisms through microenterprise, microfinance, and practitioner institutions in the implementation of this title.</text> </subsection></section> <section id="H6F07D999B5334964B094685F8CCDCB98"><enum>253.</enum><header>Monitoring system</header> <subsection id="HDC57E0B517264C6EA2CB6300827049D7"><enum>(a)</enum><header>Establishment</header><text>In order to maximize the sustainable development impact of assistance authorized under section 252(a), the Administrator of the Agency, acting through the Director of the Office, shall establish a monitoring system that meets the requirements of subsection (b).</text></subsection> <subsection id="HCEF7D31662A947E2B142CCA15BC6F6B5"><enum>(b)</enum><header>Requirements</header><text>The requirements referred to in subsection (a) are the following:</text> <paragraph id="H9291198458CF4F52A6E7673F52C31BC1"><enum>(1)</enum><text>The monitoring system establishes performance goals for the assistance and expresses such goals in an objective and quantifiable form, to the extent feasible.</text></paragraph> <paragraph id="H3347E2CA7AFE45918C2CEAC4CE233DF"><enum>(2)</enum><text>The monitoring system establishes 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.</text></paragraph> <paragraph id="H33B8043766F94DF19869224898B66F33"><enum>(3)</enum><text>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.</text></paragraph> <paragraph id="H5DDCA38A7B864B62AB8577CC85833B6C"><enum>(4) </enum><text>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.</text></paragraph></subsection></section> <section id="H169D4AC5855E4035004E00C8B91D005C"><enum>254.</enum><header>Development and certification of poverty measurement methods; application of methods</header> <subsection id="H2F1A3FC62BF24A9496CEE4D60FDD338"><enum>(a)</enum><header>Development and Certification</header> <paragraph id="HB38DA6B92C79421599661C4507F7D798"><enum>(1)</enum><header>In general</header><text>The Administrator of the Agency, in consultation with microenterprise institutions and other appropriate organizations, shall develop no fewer than two low-cost methods for eligible implementing partner organizations to use to assess the poverty levels of their current or prospective clients. The Administrator shall develop poverty indicators that correlate with the circumstances of the very poor.</text></paragraph> <paragraph id="HD48DAE0A5EF440C299A42CC863B79BA7"><enum>(2)</enum><header>Field testing</header><text>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.</text></paragraph> <paragraph id="H4E6C37D6ECB54FC6AAE8C21D818169E3"><enum>(3)</enum><header>Certification</header><text>Not later than October 1, 2004, 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 or prospective clients of microenterprise institutions for purposes of assistance under section 252.</text></paragraph></subsection> <subsection id="H0CF6B9E4E535469B824B3500B2DE3E00"><enum>(b)</enum><header>Application</header><text>The Administrator shall require that, with reasonable exceptions, all eligible implementing partner organizations applying for microenterprise assistance under this title use one of the certified methods, beginning not later than October 1, 2005, to determine and report the poverty levels of current or prospective clients.</text></subsection></section> <section id="H73E4A083A81E49EBBC171CE8517EE267"><enum>255.</enum><header>Authorization of appropriations; Additional authorities</header> <subsection id="H58AD6471F6C2407EBA02F855682B5287"><enum>(a)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated to the President to carry out this subtitle $200,000,000 for fiscal year 2005 and such sums as may be necessary for fiscal year 2006.</text></subsection> <subsection id="H19A0939178C048C39C68564E2CB00AE"><enum>(b)</enum><header>Additional Authorities</header><text>(1) Amounts appropriated pursuant to the authorization of appropriations under subsection (a)—</text> <paragraph id="HE9BB79A2E2D94AB0A0BF43065649E022"><enum>(A)</enum><text>may be referred to as the <quote>Microenterprise Development Assistance Account</quote>;</text></paragraph> <paragraph id="H3C57DABB951F45DDA7E5F2C5C85BD2DA"><enum>(B)</enum><text>shall be allocated to the Office, and upon approval by the Director of the Office, may be reallocated to field missions of the Agency in furtherance of the purposes of this title;</text></paragraph> <paragraph id="HBE532B2CF37A4A8B94E14E40063B821"><enum>(C)</enum><text>are authorized to remain available until expended; and</text></paragraph> <paragraph id="HFE72AF3833DA44A49B23410000EC9E20"><enum>(D)</enum><text>are in addition to amounts otherwise available for such purposes.</text></paragraph></subsection> <subsection id="H444B63FB9E4945849E5EFB2C00846C62"><enum>(2)</enum><text>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 of such assistance and, to the extent applicable, the information required by paragraphs (1) through (9) of subsection (b) of such section with respect to such assistance.</text></subsection> </section>

Short title

This Act may be cited as the Microenterprise Results and Accountability Act of 2004.

Findings and Policy

Congress finds and declares the following: (1)Congress has demonstrated its support for microenterprise development assistance programs through the enactment of two comprehensive microenterprise laws: (A)The Microenterprise for Self-Reliance Act of 2000 (title I of Public Law 106–309; 114 Stat. 1082). (B)Public Law 108-31 (an Act entitled An Act to amend the Microenterprise for Self-Reliance Act of 2000 and the Foreign Assistance Act of 1961 to increase assistance for the poorest people in developing countries under microenterprise assistance program under those Acts, and for other purposes, approved June 17, 2003). (2)The United States Agency for International Development, the agency responsible for implementing microenterprise development assistance programs authorized under sections 108 and 131 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f and 2152a), is not presently organized to adequately coordinate, implement, and monitor such programs, as evidenced by the late submission by the Agency of the report required by section 108 of the Microenterprise for Self-Reliance Act of 2000. (3)The Comptroller General, in a report dated November 2003, found that the United States Agency for International Development has met some, but not all, of the key objectives of such microenterprise development assistance programs. (4)The Comptroller General's report found, among other things, the following: (A)Microenterprise development assistance generally can help alleviate some impacts of poverty, improve income levels and quality of life for borrowers and provide poor individuals, workers, and their families with an important coping mechanism. (B)Although studies and academic analyses funded by the United States Agency for International Development have found that microenterprise activities generally serve the poor clustered around the poverty line, few loans appear to be reaching the very poor. (C)Microenterprise development assistance programs of the United States Agency for International Development have encouraged women's participation in microfinance projects and, according to data of the Agency, women have comprised two-thirds or more of the micro-loan clients in Agency-funded microenterprise projects since 1997. (5)(A)The Comptroller General's report recommends that the Administrator of the United States Agency for International Development review the Agency's “microenterprise results reporting” system with the goal of ensuring that its annual reporting is complete and accurate. (B)Specifically, the Administrator should review and reconsider the methodologies used for the collection, analysis, and reporting of data on annual spending targets, outreach to the very poor, sustainability of microfinance institutions, and the contribution of Agency's funding to the institutions it supports.

Microenterprise Development Assistance

Chapter 2 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2166 et seq.) is amended by inserting after title V the following new title:

<enum>VI</enum><header>Microenterprise Development Assistance</header> <section id="H2961635F48834B21B25E146ED907CB68"><enum>251.</enum><header>Findings and policy</header><text display-inline="no-display-inline">Congress finds and declares the following:</text> <paragraph display-inline="no-display-inline" id="H0B0B4880891B46119230657DEB42B9F2"><enum>(1)</enum><text>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.</text></paragraph> <paragraph id="H8D18B39E086C441682666F7900ECE267"><enum>(2)</enum><text>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.</text></paragraph> <paragraph id="HBD83B935CB6E44A4AF58AF1CC3BF580"><enum>(3)</enum><text>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 services.</text></paragraph> <paragraph id="HE048FF1B862A4312BD66487ECB3B006C"><enum>(4)</enum><text>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.</text></paragraph> <paragraph id="HCF62BCD288954E2793B72B1074EE4F41"><enum>(5)</enum><text>Microenteprise programs have been successful and should continue to empower vulnerable women in the developing world. Such programs should take into account the risks faced by women who are potential victims of severe forms of trafficking and the need for assistance for women who become victims of severe forms of trafficking, as provided for in section 106(a)(1) of the Trafficking Victims Protection Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/22/7104">22 U.S.C. 7104(a)(1)</external-xref>; <external-xref legal-doc="public-law" parsable-cite="pl/106/386">Public Law 106–386</external-xref>). </text></paragraph></section> <section id="HCA0D8FBA53F04D9EAFA7FEA918C90217"><enum>252.</enum><header>Authorization; Implementation; Targeted Assistance</header> <subsection id="HC2D409317D564B4891453467A4050727"><enum>(a)</enum><header>Authorization</header><text>The President is authorized to provide assistance on a grant basis for programs in developing countries to increase the availability of credit, savings, and other services to microenterprises lacking full access to capital, training, technical assistance, and business development services, through—</text> <paragraph id="H11073C11B9A8403DBE51D5884DC3BC"><enum>(1)</enum><text>grants to microfinance institutions for the purpose of expanding the availability of credit, savings, and other financial services to microentreprise clients;</text></paragraph> <paragraph id="H55A9EA123F6A44FCAC9E6DD59E711B1C"><enum>(2)</enum><text>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;</text></paragraph> <paragraph id="H99BAB98F10DD4EEC9DEC7C1225E395D2"><enum>(3)</enum><text>capacity-building for microenterprise institutions in order to enable them to better meet the credit, savings, and training needs of microentreprise clients; and</text></paragraph> <paragraph id="HCEDC5B719ED2420DB4C78F0008645D95"><enum>(4)</enum><text>policy and regulatory programs at the country level that improve the environment for microentreprise clients and microenterprise institutions that serve the poor and very poor.</text></paragraph></subsection> <subsection id="H260230AA436E4CE4B22100DF05589656"><enum>(b)</enum><header>Implementation</header> <paragraph id="H9CCCE8F0F5824ED890B6A519996BF00"><enum>(1)</enum><header>Office of microenterprise development</header> <subparagraph id="HE475572CE36D4288B000AA973892D400"><enum>(A)</enum><header>Establishment</header><text>There is established within the Agency an Office of Microenterprise Development, which shall be headed by a Director who shall be appointed by the Administrator and who should possess technical expertise and ability to offer leadership in the field of microenterprise development.</text></subparagraph> <subparagraph id="HA1D19DF946214DEABCA61177A95EAC5E"><enum>(B)</enum><header>Duties</header><text>The Office shall coordinate and be responsible for the provision of assistance under this title.</text></subparagraph></paragraph> <paragraph id="HF0601F353BDE4DF0BD0471000028AF56"><enum>(2)</enum><header>Assistance through grants to eligible organizations</header><text>Assistance under subsection (a) shall be provided through grants executed, approved, or reviewed by the Office to eligible implementing partner organizations that have a capacity to develop and implement microenterprise programs.</text></paragraph> <paragraph id="HF3E11C5387F44E66863416B52B976CF2"><enum>(3)</enum><header>Review and approval</header><text>With respect to assistance under subsection (a) that is furnished through field missions of the Agency, the Office shall be responsible for—</text> <subparagraph id="H68617B78C3B549FD87ED96B27A75C51"><enum>(A)</enum><text>reviewing or approving each grant agreement prior to obligation of funds under the agreement in order to ensure that activities to be carried out using such funds are efficacious, technically sound, and suitable for the economic and security climate of the country or region where the activities will be conducted; and</text></subparagraph> <subparagraph id="H083ABF6A22EB489F8D4C7BA813888F00"><enum>(B)</enum><text>approving microenterprise development components of strategic plans of missions, bureaus, and offices of the Agency.</text></subparagraph></paragraph></subsection> <subsection id="HDE822BB324B24AB9ADF7832DE238EE59"><enum>(c)</enum><header>Targeted Assistance</header><text>In carrying out sustainable poverty-focused programs under subsection (a), 50 percent of all microenterprise resources shall be targeted to very poor clients, defined as those individuals 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—</text> <paragraph id="HA1934D9400E8458B9F8536F4F32C63CB"><enum>(1)</enum><text>support of programs under this section through practitioner institutions that—</text> <subparagraph id="H2A5B865353DF4FD1AB9EC4F786969FEC"><enum>(A)</enum><text>provide credit and other financial services to clients who are very poor, with loans in 1995 United States dollars of—</text> <clause id="HA01A6EB88897498AAABE1F283528B1DD"><enum>(i)</enum><text>$1,000 or less in the Europe and Eurasia region;</text></clause> <clause id="H5F7C244B54DB4871ADC02F54E0341D00"><enum>(ii)</enum><text>$400 or less in the Latin America region; and</text></clause> <clause id="H949AC68CB760436CA4EFB4ADA687BD20"><enum>(iii)</enum><text>$300 or less in the rest of the world; and</text></clause></subparagraph> <subparagraph id="H218248E72F794FB2B3BB77D024BA1E4F"><enum>(B)</enum><text>can cover their costs in a reasonable time period; or</text></subparagraph></paragraph> <paragraph id="HE5E4206C260641B98D13587F5D4D04E7"><enum>(2)</enum><text>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 paragraph (1)(A)), whether they are provided by microfinance institutions or by specialized business development services providers.</text></paragraph></subsection> <subsection id="H85C7DB24E89848FBB9F6DA1D4CF3FEA8"><enum>(d)</enum><header>Support for Central Mechanisms</header><text>The Administrator should increase the use of central mechanisms through microenterprise, microfinance, and practitioner institutions in the implementation of this title.</text> </subsection></section> <section id="H6F07D999B5334964B094685F8CCDCB98"><enum>253.</enum><header>Monitoring system</header> <subsection id="HDC57E0B517264C6EA2CB6300827049D7"><enum>(a)</enum><header>Establishment</header><text>In order to maximize the sustainable development impact of assistance authorized under section 252(a), the Administrator of the Agency, acting through the Director of the Office, shall establish a monitoring system that meets the requirements of subsection (b).</text></subsection> <subsection id="HCEF7D31662A947E2B142CCA15BC6F6B5"><enum>(b)</enum><header>Requirements</header><text>The requirements referred to in subsection (a) are the following:</text> <paragraph id="H9291198458CF4F52A6E7673F52C31BC1"><enum>(1)</enum><text>The monitoring system establishes performance goals for the assistance and expresses such goals in an objective and quantifiable form, to the extent feasible.</text></paragraph> <paragraph id="H3347E2CA7AFE45918C2CEAC4CE233DF"><enum>(2)</enum><text>The monitoring system establishes 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.</text></paragraph> <paragraph id="H33B8043766F94DF19869224898B66F33"><enum>(3)</enum><text>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.</text></paragraph> <paragraph id="H5DDCA38A7B864B62AB8577CC85833B6C"><enum>(4) </enum><text>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.</text></paragraph></subsection></section> <section id="H169D4AC5855E4035004E00C8B91D005C"><enum>254.</enum><header>Development and certification of poverty measurement methods; application of methods</header> <subsection id="H2F1A3FC62BF24A9496CEE4D60FDD338"><enum>(a)</enum><header>Development and Certification</header> <paragraph id="HB38DA6B92C79421599661C4507F7D798"><enum>(1)</enum><header>In general</header><text>The Administrator of the Agency, in consultation with microenterprise institutions and other appropriate organizations, shall develop no fewer than two low-cost methods for eligible implementing partner organizations to use to assess the poverty levels of their current or prospective clients. The Administrator shall develop poverty indicators that correlate with the circumstances of the very poor.</text></paragraph> <paragraph id="HD48DAE0A5EF440C299A42CC863B79BA7"><enum>(2)</enum><header>Field testing</header><text>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.</text></paragraph> <paragraph id="H4E6C37D6ECB54FC6AAE8C21D818169E3"><enum>(3)</enum><header>Certification</header><text>Not later than October 1, 2004, 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 or prospective clients of microenterprise institutions for purposes of assistance under section 252.</text></paragraph></subsection> <subsection id="H0CF6B9E4E535469B824B3500B2DE3E00"><enum>(b)</enum><header>Application</header><text>The Administrator shall require that, with reasonable exceptions, all eligible implementing partner organizations applying for microenterprise assistance under this title use one of the certified methods, beginning not later than October 1, 2005, to determine and report the poverty levels of current or prospective clients.</text></subsection></section> <section id="H73E4A083A81E49EBBC171CE8517EE267"><enum>255.</enum><header>Authorization of appropriations; Additional authorities</header> <subsection id="H58AD6471F6C2407EBA02F855682B5287"><enum>(a)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated to the President to carry out this subtitle $200,000,000 for fiscal year 2005 and such sums as may be necessary for fiscal year 2006.</text></subsection> <subsection id="H19A0939178C048C39C68564E2CB00AE"><enum>(b)</enum><header>Additional Authorities</header><text>(1) Amounts appropriated pursuant to the authorization of appropriations under subsection (a)—</text> <paragraph id="HE9BB79A2E2D94AB0A0BF43065649E022"><enum>(A)</enum><text>may be referred to as the <quote>Microenterprise Development Assistance Account</quote>;</text></paragraph> <paragraph id="H3C57DABB951F45DDA7E5F2C5C85BD2DA"><enum>(B)</enum><text>shall be allocated to the Office, and upon approval by the Director of the Office, may be reallocated to field missions of the Agency in furtherance of the purposes of this title;</text></paragraph> <paragraph id="HBE532B2CF37A4A8B94E14E40063B821"><enum>(C)</enum><text>are authorized to remain available until expended; and</text></paragraph> <paragraph id="HFE72AF3833DA44A49B23410000EC9E20"><enum>(D)</enum><text>are in addition to amounts otherwise available for such purposes.</text></paragraph></subsection> <subsection id="H444B63FB9E4945849E5EFB2C00846C62"><enum>(2)</enum><text>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 of such assistance and, to the extent applicable, the information required by paragraphs (1) through (9) of subsection (b) of such section with respect to such assistance.</text></subsection> </section>

Microenterprise development credits

(a)

Transfer

Section 108 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f) is hereby— (1)transferred from chapter 1 of part I of the Foreign Assistance Act of 1961 to title VI of chapter 2 of part I of such Act (as added by section 3 of this Act); and (2)inserted after section 255 of the Foreign Assistance Act of 1961. (b)

Redesignation

Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 is amended by redesignating section 108 (as added by subsection (a)) as section 256. (c)

Conforming Amendments

Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 is amended— (1)by inserting after the title heading the following:

Grant Assistance

;

(2)by inserting after section 255 the following:

Credit Assistance

; and

(3)in section 256 (as redesignated by subsection (b))— (A)in the matter preceding paragraph (1) of subsection (c), by striking Administrator of the agency primarily responsible for administering this part and inserting Administrator of the Agency; and (B)in subsection (f)(1)— (i)by striking section 131 and inserting this part; and (ii)by striking 2001 through 2004 and inserting 2005 and 2006.

United States Microfinance Loan Facility

(a)

Transfer

Section 132 of the Foreign Assistance Act of 1961 (22 U.S.C. 2152b) is hereby— (1)transferred from chapter 1 of part I of the Foreign Assistance Act of 1961 to title VI of chapter 2 of part I of such Act (as added by section 3 of this Act); and (2)inserted after section 256 of the Foreign Assistance Act of 1961 (as added by section 4 of this Act). (b)

Redesignation

Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 is amended by redesignating section 132 (as added by subsection (a)) as section 257. (c)

Conforming Amendments

Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 is amended— (1)by inserting after section 256 the following:

United States Microfinance Loan Facility

; and

(2)in section 257 (as redesignated by subsection (b))— (A)in subsection (b)(3), by striking 2001 and 2002 and inserting 2005 and 2006; (B)in the matter preceding subparagraph (A) of subsection (d)(1), by striking the fiscal year 2001 and inserting each of the fiscal years 2005 and 2006; and (C)by striking subsection (e).

Miscellaneous provisions

Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 (as added by section 3 of this Act and amended by sections 4 and 5 of this Act) is further amended by adding at the end the following new subtitle:

Miscellaneous Provisions

258.

Report

(a)

In General

Not later than December 31, 2005, and each December 31 thereafter, the Administrator of the Agency shall submit to the appropriate congressional committees a report that contains a detailed description of the implementation of this title for the previous fiscal year. (b)

Contents

The report shall contain the following: (1)The number of grants provided under section 252, with a listing of— (A)the amount of each grant; (B)the name of each implementing partner organization; and (C)a listing of the number of countries receiving assistance authorized by sections 252. (2)The results of the monitoring system required under section 253. (3)The process of developing and applying poverty assessment procedures required under section 254. (4)The percentage of assistance furnished under section 252 that was allocated to the very poor based on the data collected using the certified methods required by section 254. (5)The absolute number of the very poor reached with assistance furnished under section 252. (6)The amount of assistance provided under section 252 through central mechanisms. (7)The name of each country that receives assistance under section 256 and the amount of such assistance. (8)An estimate of the percentage of beneficiaries of assistance under this title who are women, including, to the extent practicable, the percentage of these women who have been victims of sex trafficking, as well as information on efforts to provide assistance under this title to women who have been victims of severe forms of trafficking or who were previously involved in prostitution. (9)Any additional information relating to the provision of assistance authorized by this title, including the use of the poverty measurement tools required by section 254, or additional information on assistance provided by the United States to support microenterprise development under this title or any other provision of law. (c)

Limitation

The content of the report required by this section shall be produced by the Office established under section 252(b)(1), and shall be made available for free electronic distribution through such Office.

259.

Definition

In this title: (1)

Administrator

The term Administrator means the Administrator of the Agency. (2)

Agency

The term Agency means the United States Agency for International Development. (3)

Appropriate congressional committees

The term appropriate congressional committees means the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate. (4)

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 related services. (5)

Director

The term Director means the Director of the Office. (6)

Eligible implementing partner organization

The term eligible implementing partner organization means an entity eligible to receive assistance under this title which is— (A)a United States or an indigenous private voluntary organization; (B)a United States or an indigenous credit union; (C)a United States or an indigenous cooperative organization; (D)an indigenous governmental or nongovernmental organization; (E)a microenterprise institution; (F)a microfinance institution; or (G)a practitioner institution. (7)

Microenterprise institution

The term microenterprise institution means a not-for-profit entity that provides services, including microfinance, training, or business development services, for microentreprise clients in foreign countries. (8)

Microfinance institution

The term microfinance institution means a not-for-profit entity or a regulated financial intermediary that directly provides, or works to expand, the availability of credit, savings, and other financial services to microentreprise clients in foreign countries. (9)

Microfinance network

The term ‘microfinance network’ means an affiliated group of practitioner institutions that provides services to its members, including financing, technical assistance, and accreditation, for the purpose of promoting the financial sustainability and societal impact of microenterprise assistance. (10)

Office

The term Office means the Office of Microenterprise Development established under section 252(b)(1). (11)

Practitioner institution

The term practitioner institution means a not-for-profit entity or a regulated financial intermediary, including a microfinance network, that provides services, including microfinance, training, or business development services, for microentreprise clients, or provides assistance to microenterprise institutions in foreign countries. (12)

Private voluntary organization

The term private voluntary organization means a not-for-profit entity that— (A)engages in and supports activities of an economic or social development or humanitarian nature for citizens in foreign countries; and (B)is incorporated as such under the laws of the United States, including any of its states, territories or the District of Columbia, or of a foreign country. (13)

United states-supported microfinance institution

The term United States-supported microfinance institution means a financial intermediary that has received funds made available under this part for fiscal year 1980 or any subsequent fiscal year. (14)

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.

Repeals

(a)

Foreign Assistance Act of 1961

Section 131 of the Foreign Assistance Act of 1961 (22 U.S.C. 2152a) is hereby repealed. (b)

Public Law 108-31

(1)

In general

Section 4 of Public Law 108–31 (22 U.S.C. 2151f note) is amended by striking subsection (b). (2)

Conforming amendment

Section 4 of Public Law 108–31 is amended by striking (a) and all that follows through Not later and inserting Not later.

References

Any reference in a law, regulation, agreement, or other document of the United States to section 108, 131, or 132 of the Foreign Assistance Act of 1961 shall be deemed to be a reference to subtitle B of title VI of chapter 2 of part I of the Foreign Assistance Act of 1961, subtitle A of title VI of chapter 2 of part I of such Act, or subtitle C of title VI of chapter 2 of part I of such Act, respectively.