[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.