    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 775

    Public Law 108-31
    108th Congress

    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 programs
    under those Acts, and for other purposes. [NOTE: June 17, 2003 -  [H.R.
    192]]

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

    SECTION 1. AMENDMENTS TO THE MICROENTERPRISE FOR SELF-RELIANCE ACT OF
    2000.

    (a) Purposes.--Section 103 of the Microenterprise for Self-Reliance
    Act of 2000 (Public Law 106-309) is [NOTE: 22 USC 2151f
    note.] amended--
    (1) in paragraph (3), by striking ``microentrepreneurs'' and
    inserting ``microenterprise households'';
    (2) in paragraph (4), by striking ``and'' at the end;
    (3) in paragraph (5)--
    (A) by striking ``microfinance policy'' and
    inserting ``microenterprise policy'';
    (B) by striking ``the poorest of the poor'' and
    inserting ``the very poor''; and
    (C) by striking the period at the end and inserting
    ``; and''; and
    (4) by adding at the end the following:
    ``(6) to ensure that in the implementation of this title at
    least 50 percent of all microenterprise assistance under this
    title, and the amendments made under this title, shall be
    targeted to the very poor.''.

    (b) Definitions.--Section 104 of such Act is [NOTE: 22 USC 2151f
    note.] amended--
    (1) in paragraph (2), by striking ``for microentrepreneurs''
    and inserting ``to microentrepreneurs and their households'';
    and
    (2) by adding at the end the following:
    ``(5) Very poor.--The term `very poor' means 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 the equivalent of less than $1 per
    day.''.

    SEC. 2. AMENDMENTS TO THE MICRO- AND SMALL ENTERPRISE DEVELOPMENT
    CREDITS PROGRAM UNDER THE FOREIGN ASSISTANCE ACT OF 1961.

    (a) Findings and Policy.--Section 108(a)(2) of the Foreign
    Assistance Act of 1961 (22 U.S.C. 2151f(a)(2)) is amended by striking
    ``the development of the enterprises of the poor'' and inserting

    [[Page 776]]

    117 STAT. 776

    ``the access to financial services and the development of
    microenterprises''.
    (b) Program.--Section 108(b) of such Act (22 U.S.C. 2151f(b)) is
    amended to 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 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.--Section 108(c) of such Act (22 U.S.C.
    2151f(c)) is amended--
    (1) in the first sentence of the matter preceding paragraph
    (1)--
    (A) by striking ``credit institutions'' and
    inserting ``microfinance institutions''; and
    (B) by striking ``micro- and small enterprises'' and
    inserting ``microenterprise households''; and
    (2) in paragraphs (1) and (2), by striking ``credit'' each
    place it appears and inserting ``financial services''.

    (d) Additional Requirement.--Section 108(d) of such Act (22 U.S.C.
    2151f(d)) is amended by striking ``micro- and small enterprise
    programs'' and inserting ``programs for microenterprise households''.
    (e) Availability of Funds.--Section 108(f)(1) of such Act (22 U.S.C.
    2151f(f)(1)) is amended by striking ``for each of fiscal years 2001 and
    2002'' and inserting ``for each of fiscal years 2001 through 2004''.
    (f) Conforming Amendment.--Section 108 of such Act (22 U.S.C. 2151f)
    is amended in the heading to read as follows:

    ``SEC. 108. MICROENTERPRISE DEVELOPMENT CREDITS.''.

    SEC. 3. AMENDMENTS TO THE MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE
    PROGRAM UNDER THE FOREIGN ASSISTANCE ACT OF 1961.

    (a) Findings and Policy.--Section 131(a) of the Foreign Assistance
    Act of 1961 (22 U.S.C. 2152a(a)) is amended to read as follows:
    ``(a) Findings and Policy.--Congress finds and declares that--
    ``(1) 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;
    ``(2) 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;
    ``(3) 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 and non-financial services; and

    [[Page 777]]

    117 STAT. 777

    ``(4) 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.''.

    (b) Authorization.--Section 131(b) of such Act (22 U.S.C. 2152a(b))
    is amended--
    (1) in paragraph (3)(A)(i), by striking ``entrepreneurs''
    and inserting ``clients''; and
    (2) in paragraph (4)(D)--
    (A) in clause (i), by striking ``very small loans''
    and inserting ``financial services to poor
    entrepreneurs''; and
    (B) in clause (ii), by striking ``microfinance'' and
    inserting ``microenterprise''.

    (c) Monitoring System.--Section 131(c) of such Act (22 U.S.C.
    2152a(c)) is amended by striking paragraph (4) and inserting the
    following:
    ``(4) adopts the widespread use of proven and effective
    poverty assessment tools to successfully identify the very poor
    and ensure that they receive needed microenterprise loans,
    savings, and assistance.''.

    (d) Development and Application of Poverty Measurement Methods.--
    Section 131 of such Act (22 U.S.C. 2152a) is amended--
    (1) by redesignating subsections (d) and (e) as subsections
    (e) and (f), respectively; and
    (2) by inserting after subsection (c) the following:

    ``(d) Development and Certification of Poverty Measurement Methods;
    Application of Methods.--
    ``(1) Development and certification.--(A) The Administrator
    of the United States Agency for International Development, in
    consultation with microenterprise institutions and other
    appropriate organizations, shall develop no fewer than two low-
    cost methods for partner institutions to use to assess the
    poverty levels of their current or prospective clients. The
    United States Agency for International Development shall develop
    poverty indicators that correlate with the circumstances of the
    very poor.
    ``(B) The Administrator shall field-test the methods
    developed under subparagraph (A). 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.
    ``(C) [NOTE: Deadline.] Not later than October 1, 2004,
    the Administrator shall, from among the low-cost poverty
    measurement methods developed under subparagraph (A), 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
    this section.
    ``(2) [NOTE: Deadline.] Application.--The Administrator
    shall require that, with reasonable exceptions, all
    organizations applying for microenterprise assistance under this
    Act use one of the certified methods, beginning no later than
    October 1, 2005, to determine and report the poverty levels of
    current or prospective clients.''.

    (e) Level of Assistance.--Section 131(e) of such Act, as
    redesignated by subsection (d), is amended by inserting ``and
    $175,000,000 for fiscal year 2003 and $200,000,000 for fiscal year
    2004'' after ``fiscal years 2001 and 2002''.

    [[Page 778]]

    117 STAT. 778

    (f) Definitions.--Section 131(f) of such Act, as redesignated by
    subsection (d), is amended by adding at the end the following:
    ``(5) 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.''.

    SEC. 4. REPORT TO [NOTE: 22 USC 2151f note.] CONGRESS.

    (a) [NOTE: Deadline.] In General.--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.

    (b) Reports for Fiscal Year 2006 and Beyond.--Beginning with fiscal
    year 2006, the Administrator of the United States Agency for
    International Development shall annually submit to Congress on a timely
    basis a report that addresses the United States Agency for International
    Development's compliance with the Microenterprise for Self-Reliance Act
    of 2000 by documenting--
    (1) the percentage of its resources that were allocated to
    the very poor (as defined in paragraph (5) of section 131(f) of
    the Foreign Assistance Act of 1961 (22 U.S.C. 2152a(f)(5)))
    based on the data collected from its partners using the
    certified methods; and
    (2) the absolute number of the very poor reached.

    Approved June 17, 2003.

    LEGISLATIVE HISTORY--H.R. 192:
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    CONGRESSIONAL RECORD, Vol. 149 (2003):
    May 14, considered and passed House.
    May 23, considered and passed Senate.