    [United States Statutes at Large, Volume 132, 115th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 115-428
    115th Congress

    An Act

    To improve programs and activities relating to women's entrepreneurship
    and economic empowerment that are carried out by the United States
    Agency for International Development, and for other
    purposes. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <> Women's
    Entrepreneu
    rship and
    Economic
    Empowerment

    Act of
    2018.
    SECTION 1. <>  SHORT TITLE.

    This Act may be cited as the ``Women's Entrepreneurship and Economic
    Empowerment Act of 2018''.
    SEC. 2. <>  FINDINGS.

    Congress finds the following:
    (1) Because women make up the majority of the world's poor
    and gender inequalities prevail in incomes, wages, access to
    finance, ownership of assets, and control over the allocation of
    resources, women's entrepreneurship and economic empowerment is
    important to achieve inclusive economic growth at all levels of
    society.
    (2) Research shows that when women exert greater influence
    over household finances, economic outcomes for families improve,
    and childhood survival rates, food security, and educational
    attainment increase. Women also tend to place a greater emphasis
    on household savings which improves family financial resiliency.
    (3) A 2016 report by the McKinsey Global Institute estimated
    that achieving global gender parity in economic activity could
    add as much as $28,000,000,000,000 to annual global gross
    domestic product by 2025.
    (4) Lack of access to financial services that address
    gender-specific constraints impedes women's economic inclusion.
    Roughly 1,000,000,000 women around the world are currently left
    out of the formal financial system, which causes many women to
    rely on informal means of saving and borrowing that are riskier
    and less reliable.
    (5) Among other consequences, this lack of access hampers
    the success of women entrepreneurs, including women who are
    seeking to run or grow small and medium-sized enterprises. The
    International Finance Corporation has estimated that 70 percent
    of women-owned small and medium-sized enterprises in the formal
    sector are unserved or underserved in terms of access to
    financial services, resulting in a financing gap of
    $300,000,000,000 for women-owned small businesses.
    (6) Women's economic empowerment is inextricably linked to a
    myriad of other women's human rights that are essential

    [[Page 5510]]

    to their ability to thrive as economic actors across the
    lifecycle, including--
    (A) living lives free of violence and exploitation;
    (B) achieving the highest possible standard of
    health and well-being;
    (C) enjoying full legal and human rights, such as
    access to registration, identification, and citizenship
    documents;
    (D) benefitting from formal and informal education;
    (E) equal protection of and access to land and
    property rights;
    (F) access to fundamental labor rights;
    (G) policies to address disproportionate care
    burdens; and
    (H) business and management skills and leadership
    opportunities.
    (7) Discriminatory legal and regulatory systems and banking
    practices are obstacles to women's access to capital and assets,
    including land, machinery, production facilities, technology,
    and human resources. These barriers are often connected to a
    woman's marital status, which can determine whether she is able
    to inherit land or own property in her name. These constraints
    contribute to women frequently running smaller businesses, with
    fewer employees and lower asset values.
    (8) Savings groups primarily comprised of women are
    recognized as a vital entry point, especially for poor and very
    poor women, to formal financial services. There is a high demand
    for such groups to protect and grow the savings of women with
    formal financial institutions.
    (9) Evidence shows that, once a saving group is linked to a
    bank, the average savings per member increases between 40 to 100
    percent and the average profit per member doubles. Investing in
    financial literacy, business leadership training, and mentorship
    are key elements to these outcomes.
    (10) United States support for microenterprise and
    microfinance development programs, which seek to reduce poverty
    in low-income countries by giving small loans to small-scale
    entrepreneurs without collateral, have been a useful mechanism
    to help families weather economic shocks, but many microcredit
    borrowers largely remain in poverty.
    (11) The vast majority of microcredit borrowers are women
    who would like to move up the economic ladder, but are held back
    by binding constraints that create a missing middle - large
    numbers of microenterprises, a handful of large firms or
    conglomerates, and very few small and medium-sized enterprises
    in between, which are critical to driving economic growth in
    developing countries.
    (12) According to the World Bank, small and medium-sized
    enterprises create 4 out of 5 new positions in emerging markets,
    but approximately 50 percent of formal small and medium-sized
    enterprises lack access to formal credit. The financing gap is
    even larger when micro and informal enterprises are taken into
    account. Overall, approximately 70 percent of all micro, small,
    and medium-sized enterprises in emerging markets lack access to
    credit.

    [[Page 5511]]

    SEC. 3. <>  ACTIONS TO IMPROVE THE
    INTERNATIONAL GENDER POLICY OF THE UNITED
    STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.

    (a) Gender Analysis Defined.--In this section, the term ``gender
    analysis''--
    (1) means a socioeconomic analysis of available or gathered
    quantitative and qualitative information to identify,
    understand, and explain gaps between men and women which
    typically involves examining--
    (A) differences in the status of women and men and
    their differential access to and control over assets,
    resources, education, opportunities, and services;
    (B) the influence of gender roles, structural
    barriers, and norms on the division of time between paid
    employment, unpaid work (including the subsistence
    production and care for family members), and volunteer
    activities;
    (C) the influence of gender roles, structural
    barriers, and norms on leadership roles and decision
    making; constraints, opportunities, and entry points for
    narrowing gender gaps and empowering women; and
    (D) potential differential impacts of development
    policies and programs on men and women, including
    unintended or negative consequences; and
    (2) includes conclusions and recommendations to enable
    development policies and programs to narrow gender gaps and
    improve the lives of women and girls.

    (b) International Development Cooperation Policy.--It shall be the
    international development cooperation policy of the United States--
    (1) to reduce gender disparities with respect to economic,
    social, political, educational, and cultural resources, wealth,
    opportunities, and services;
    (2) to strive to eliminate gender-based violence and
    mitigate its harmful effects on individuals and communities
    including through efforts to develop standards and capacity to
    reduce gender-based violence in the workplace and other places
    where women work;
    (3) to support activities that secure private property
    rights and land tenure for women in developing countries,
    including--
    (A) legal frameworks that give women equal rights to
    own, register, use, profit from, and inherit land and
    property;
    (B) improving legal literacy to enable women to
    exercise the rights described in subparagraph (A); and
    (C) improving the capacity of law enforcement and
    community leaders to enforce such rights;
    (4) to increase the capability of women and girls to fully
    exercise their rights, determine their life outcomes, assume
    leadership roles, and influence decision-making in households,
    communities, and societies; and
    (5) to improve the access of women and girls to education,
    particularly higher education opportunities in business,
    finance, and management, in order to enhance financial literacy
    and business development, management, and strategy skills.

    (c) Actions.--In order to advance the policy described in subsection
    (b), the Administrator of the United States Agency for International
    Development shall ensure that--

    [[Page 5512]]

    (1) strategies, projects, and activities of the Agency are
    shaped by a gender analysis;
    (2) standard indicators are used to assess such strategies,
    projects, and activities, if applicable; and
    (3) gender equality and female empowerment are integrated
    throughout the Agency's program cycle and related processes for
    purposes of strategic planning, project design and
    implementation, monitoring, and evaluation.
    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

    [[Page 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

    [[Page 5514]]

    (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

    [[Page 5515]]

    (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'';

    [[Page 5516]]

    (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''.

    [[Page 5517]]

    SEC. 5. REPORT AND BRIEFING BY THE UNITED STATES AGENCY FOR
    INTERNATIONAL DEVELOPMENT.

    (a) In General.--Not later than 1 year after the date of the
    enactment of this Act, the Administrator of the United States Agency for
    International Development shall provide a briefing and submit a report
    to the Committee on Foreign Affairs of the House of Representatives and
    the Committee on Foreign Relations of the Senate regarding the
    implementation of this Act and the amendments made by this Act,
    including actions to improve the gender policies of the United States
    Agency for International Development pursuant to section 3.
    (b) Public Availability.--The report required under subsection (a)
    shall be posted and made available on a text-based, searchable, and
    publicly-available internet website.
    SEC. 6. REPORT BY THE COMPTROLLER GENERAL OF THE UNITED STATES.

    (a) In General.--Not later than 2 years after the date of the
    enactment of this Act, the Comptroller General of the United States
    shall submit a report to the Committee on Foreign Affairs of the House
    of Representatives and the Committee on Foreign Relations of the Senate
    regarding development assistance for micro, small, and medium-sized
    enterprises administered by the United States Agency for International
    Development.
    (b) Matters to Be Included <> .--The report
    required under subsection (a) shall include an assessment of the
    following:
    (1) What is known about the impact of such development
    assistance on the economies of developing countries.
    (2) The extent to which such development assistance is
    targeting women and the very poor, including what is known about
    how such development assistance benefits women.
    (3) The extent to which the United States Agency for
    International Development has developed a methodology to ensure
    compliance with the targeted assistance requirement under
    section 252(c) of the Foreign Assistance Act of 1961, as amended
    by section 4(b)(3), and the quality of such methodology.
    (4) The monitoring system required under section 253(b) of
    the Foreign Assistance Act of 1961, as amended by section

    [[Page 5518]]

    4(c), including the quality, appropriateness, and feasibility of
    such monitoring system.

    Approved January 9, 2019.

    LEGISLATIVE HISTORY--S. 3247 (H.R. 5480):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 115-718 (Comm. on Foreign Affairs) accompanying
    H.R. 5480.
    CONGRESSIONAL RECORD, Vol. 164 (2018):
    Dec. 19, considered and passed Senate.
    Dec. 21, considered and passed House.