[Congressional Record Volume 142, Number 106 (Thursday, July 18, 1996)]
[Extensions of Remarks]
[Page E1328]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        THE MICROENTERPRISE ACT

                                 ______
                                 

                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                        Thursday, July 18, 1996

  Mr. GILMAN. Mr. Speaker, today I am pleased to introduce H.R. 3846, 
the Microenterprise Act. The bill is a historic alliance between the 
administration, microenterprise groups and the Congress behind the 
cause of microenterprise development to help the poorest of the poor 
work their way out of poverty.
  We have all heard of the Grameen Bank and its success in Bangladesh. 
Today, the Grameen Bank is one of the largest banks in Bangladesh. It 
is important to note that the microenterprise movement is not just 
about Grameen. In Bolivia, BancoSol has become the largest lender in 
Bolivia, solely relying on small, microenterprise loans. BancoSol is so 
big, it now borrows funds from the New York market to continue its 
service to Bolivia's poor. Other microenterprise institutions dot the 
planet, including some here at home, even in my home State of New York.
  This bill breaks new ground. It provides two new tailor-make 
authorities under the Foreign Assistance Act for microenterprise grants 
and microenterprise loans. The bill calls on the administration to 
focus on loans to the poorest of the poor, mainly through private, 
voluntary organizations, nongovernmental organizations, and other 
worthy institutions.
  I am pleased that the administration supports this bill. I look 
forward to working with Mr. Hamilton and other members of my committee 
and our colleagues in the Senate to seek its enactment before this 
Congress adjourns.

                               H.R. 3846

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Microenterprise Act''.

     SEC. 2. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

       Secton 108 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151f) is amended to read as follows:

     ``SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

       ``(a) Findings and Policy.--The Congress finds and declares 
     that--
       ``(1) the development of micro- and small enterprise, 
     including cooperatives, 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;
       ``(2) it is, therefore, in the best interests of the United 
     States to assist the development of the private sector in 
     development countries and to engage the United States private 
     sector in that process;
       ``(3) the support of private enterprise can be served by 
     programs providing credit, training, and technical assistance 
     for the benefit of micro- and small enterprises; and
       ``(4) programs that provide credit, training, and technical 
     assistance to private institutions can serve as a valuable 
     complement to grant assistance provided for the purpose of 
     benefiting micro- and small private enterprise.
       ``(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 micro- and small 
     entrepreneurs; and
       ``(3) training programs for micro- and small entrepreneurs 
     in order to enable them to make better use of credit and to 
     better manage their enterprises.''.

     SEC. 3. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

       Chapter 1 of part I of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2151 et seq.) is amended by adding at the end the 
     following new section:

     SEC. 129. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

       ``(a) Authiorization.--(1) In carrying out this part, the 
     Administrator of the United States Agency for International 
     Development is authorized to provide grant assistance for 
     programs of credit and other assistance for microenterprises 
     in developing countries.
       ``(2) Assistance authorized under paragraph (1) 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) Approximately one-half of the credit assistance 
     authorized under paragraph (1) shall be used for poverty 
     lending programs, including the poverty lending portion of 
     mixed programs. Such programs--
       ``(A) shall meet the needs of the very poor members of 
     society, particularly poor women; and
       ``(B) should provide loans of $300 or less in 1995 United 
     States dollars to such poor members of society.
       ``(4) The Administrator should continue support for 
     mechanisms that--
       ``(A) provide technical support for field missions;
       ``(B) strengthen the institutional development of the 
     intermediary organizations described in paragraph (2); and
       ``(C) share information relating to the provision of 
     assistance authorized under paragraph (1) between such field 
     missions and intermediary organizations.
       ``(b) Monitoring System.--In order to maximize the 
     sustainable development impact of the assistance authorized 
     under subsection (a)(1), the Administrator should 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; and
       ``(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.''.

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