II 

Calendar No. 79 

112TH CONGRESS 

1ST SESSION S. 618 

[Report No. 112–25] 

To promote the strengthening of the private sector in Egypt and Tunisia. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2011 

Mr. KERRY (for himself, Mr. MCCAIN, Mr. LIEBERMAN, Mr. DURBIN, and Mr. 

RUBIO) introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

JUNE 22, 2011 

Reported by Mr. KERRY, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To promote the strengthening of the private sector in Egypt 

and Tunisia. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. APPROPRIATE CONGRESSIONAL COMMITTEES 

4 DEFINED. 

5 In this Act, the term ‘‘appropriate congressional com6 mittees’’ means— 


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1 (1) the Committee on Foreign Relations of the 

2 Senate; 

3 (2) the Committee on Appropriations of the 

4 Senate; 

5 (3) the Committee on Foreign Affairs of the 

6 House of Representatives; and 

7 (4) the Committee on Appropriations of the 

8 House of Representatives. 

9 TITLE I—EGYPT-AMERICAN 

10 ENTERPRISE FUND 

11 SEC. 101. SHORT TITLE. 

12 This title may be cited as the ‘‘Egyptian-American 

13 Enterprise Fund Act’’. 

14 SEC. 102. PURPOSE AND FINDINGS. 

15 (a) PURPOSE.—The purpose of this title is to support 

16 a transition to democracy in Egypt that is successful, last17 ing, and reflective of the aspirations of the Egyptian peo18 ple for greater economic opportunity and political freedom 

19 through the creation of an Egyptian-American Enterprise 

20 Fund that will support economic prosperity through finan21 cial investment and technical assistance to small- and me22 dium-sized enterprises. 

23 (b) FINDINGS.—Congress makes the following find24 ings: 


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1 (1) The United States and Egypt have a 

2 strong, long-standing bilateral relationship. 

3 (2) Egypt— 

4 (A) plays an important role in— 

5 (i) global and regional politics; and 

6 (ii) the broader Middle East and 

7 North Africa; and 

8 (B) has been an intellectual, economic, and 

9 cultural center of the Arab world for many 

10 years. 

11 (3) On January 25, 2011, demonstrations 

12 began throughout Egypt in which thousands of pro13 testers peacefully called for— 

14 (A) a new government; 

15 (B) free and fair elections; 

16 (C) significant constitutional and political 

17 reforms; 

18 (D) greater economic opportunity; and 

19 (E) an end to government corruption. 

20 (4) The demonstrators’ perseverance in the face 

21 of violence and intimidation— 

22 (A) culminated in the February 11, 2011 

23 resignation of President Hosni Mubarak; and 

24 (B) inspired democracy activists through25 out the region and around the world. 


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1 (5) The United States has a strong interest 

2 in— 

3 (A) an orderly and peaceful transition to 

4 democracy in Egypt; and 

5 (B) assisting the people of Egypt to form 

6 a representative and democratic political and 

7 economic system that respects universal values. 

8 (6) Egypt— 

9 (A) has a well-developed civil society and 

10 governing institutions; and 

11 (B) was well-served by— 

12 (i) the extraordinary determination 

13 shown by the people of Egypt in forcing 

14 President Mubarak to abdicate; and 

15 (ii) the restraint demonstrated by the 

16 Egyptian military. 

17 (7) In 2010— 

18 (A) the inflation rate in Egypt was ap19 proximately 11 percent; and 

20 (B) Egypt’s foreign debt was equal to 16 

21 percent of its $216,000,000,000 gross domestic 

22 product (GDP). 

23 (8) As a result of the dramatic events in Egypt 

24 in February 2011— 


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1 (A) Egypt’s economy was brought to a 

2 near standstill and continues to experience lin3 gering effects; 

4 (B) widespread strikes slowed down 

5 Egypt’s manufacturing output and banks closed 

6 down for intermittent periods; and 

7 (C) the value of the Egyptian stock market 

8 fell by 16 percent in the 2 days before it was 

9 closed on January 30, 2011. 

10 (9) According to analyst estimates, as a result 

11 of recent events in Egypt— 

12 (A) forecasted growth for Egypt’s GDP 

13 has dropped from 6 percent to between 3.1 and 

14 3.5 percent; 

15 (B) the amount of workers’ remittances 

16 coming into Egypt will likely decline; 

17 (C) the amount of regional securities pur18 chased by foreign investors will likely decrease, 

19 which will require fiscal deficits to be financed 

20 by domestic banks and reduce the availability of 

21 credit for private sector borrowers; 

22 (D) heightened political uncertainty will 

23 likely lead to a downturn in tourism, which ac24 counts for 8.2 percent of Egypt’s GDP and 7 

25 percent of Egypt’s direct employment; and 


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1 (E) foreign direct investment (FDI) in 

2 Egypt is predicted to decrease. 

3 (10) The most recent official estimates of the 

4 unemployment rate in Egypt is 9.2 percent. Unoffi5 cial estimates of the current unemployment rate in 

6 Egypt range between 15 and 20 percent. The unem7 ployment rate for Egyptian youth is estimated at 

8 24.8 percent. Egyptian women, who are more af9 fected by spikes in unemployment, face an unem10 ployment rate of nearly 25 percent compared to the 

11 6.7 percent unemployment rate for Egyptian men. 

12 (11) An estimated 61 percent of the population 

13 of Egypt is younger than 30 years of age. 

14 (12) Private sector employment in Egypt in15 creased from 11,000,000 to 15,100,000 between 

16 1999 and 2007. 

17 (13) According to the International Finance 

18 Corporation’s 2009 ‘‘SME Banking Knowledge 

19 Guide’’— 

20 (A) the small and medium enterprise 

21 (SME) market in Egypt was estimated at 

22 160,000; 

23 (B) of these firms, about 98 percent em24 ployed fewer than 50 people; 


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1 (C) Egypt had an estimated 2,400,000 

2 microenterprises; and 

3 (D) 68 percent of the SMEs in Egypt have 

4 bank accounts, but only 12 percent of those 

5 with bank accounts had taken out loans. 

6 (14) A challenge for SMEs is that they are not 

7 always considered a significant customer base for 

8 banks and services don’t meet the unique needs of 

9 this market segment. 

10 (15) According to the Government of Egypt’s 

11 Small and Medium Enterprise Development Unit, 

12 SMEs constitute nearly 75 percent of private sector 

13 employment. 

14 (16) According to the World Bank report enti15 tled ‘‘Access to Finance and Economic Growth in 

16 Egypt’’— 

17 (A) even before the recent political events 

18 in Egypt, private-sector credit to GDP in Egypt 

19 was modest compared to other developing 

20 economies; 

21 (B) private credit as a share of total credit 

22 has been declining; 

23 (C) the distribution of bank financing is 

24 uneven, with most loans going to large and 

25 well-established enterprises; and 


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1 (D) as a consequence, family-owned firms 

2 and SMEs, which represent the majority of 

3 firms in Egypt, rely heavily on the informal 

4 market. 

5 (17) To help foster and support the fledgling 

6 private sector after the fall of the Berlin Wall, Con7 gress, through enactment of the Support for East 

8 European Democracy (SEED) Act of 1989 (22 

9 U.S.C. 5401 et seq.) and the FREEDOM Support 

10 Act (22 U.S.C. 5801 et seq.), authorized nearly 

11 $1,200,000,000 for the United States Agency for 

12 International Development (USAID) to establish 10 

13 new investment funds (collectively known as the 

14 ‘‘Enterprise Funds’’) throughout Central and East15 ern Europe and the former Soviet Union. 

16 (18) The Enterprise Funds— 

17 (A) channeled funding into more than 500 

18 enterprises in 19 countries; 

19 (B) leveraged an additional 

20 $5,000,000,000 in private investment capital 

21 from outside the United States Government; 

22 (C) provided substantial development cap23 ital where supply was limited; 


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1 (D) created or sustained more than 

2 260,000 jobs through investment and develop3 ment activities; 

4 (E) funded $74,000,000 in technical as5 sistance to strengthen the private sector; and 

6 (F) are expected to recoup 137 percent of 

7 the original USAID funding. 

8 (19) Enterprise funds established in partner9 ship with United States partners, such as Poland, 

10 Hungary, Albania, Russia, and other European 

11 countries, have proven beneficial to the economies of 

12 such countries. 

13 (20) Creating a similar fund in close partner14 ship with the people of Egypt would help sustain 

15 and expand reform efforts in Egypt and empower 

16 Egyptian entrepreneurs with the resources required 

17 to create urgently needed employment opportunities. 

18 (21) Establishing an enterprise fund for Egypt 

19 would— 

20 (A) help reinforce financial institutions 

21 within the country; 

22 (B) provide debt and equity investment for 

23 commercially viable SMEs; and 


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1 (C) make the investment environment 

2 more attractive to domestic and international 

3 investors. 

4 SEC. 103. PURPOSES OF EGYPTIAN-AMERICAN ENTERPRISE 

5 FUND. 

6 The purposes of the Egyptian-American Enterprise 

7 Fund are— 

8 (1) to promote the private sector in Egypt, 

9 while considering the development impact of invest10 ments and profitability of those investments, par11 ticularly in small- and medium-sized enterprises, and 

12 joint ventures with participants from the United 

13 States and Egypt; 

14 (2) to promote policies and practices conducive 

15 to strengthening the private sector in Egypt through 

16 measures including loans, microloans, equity invest17 ments, insurance, guarantees, grants, feasibility 

18 studies, technical assistance, training for businesses 

19 receiving investment capital, and other measures; 

20 (3) to promote good corporate governance and 

21 transparency in Egypt, foster competition, catalyze 

22 productivity improvements in existing businesses, 

23 and strengthen local capital markets; and 


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1 (4) to promote security through job creation in 

2 the private sector in Egypt and to further the cre3 ation of a middle class in Egypt. 

4 SEC. 104. EGYPTIAN-AMERICAN ENTERPRISE FUND. 

5 (a) ESTABLISHMENT.—The President is authorized 

6 to establish or designate a private, nonprofit organization 

7 (to be known as the ‘‘Egyptian-American Enterprise 

8 Fund’’) to receive funds and support made available under 

9 this title after determining that such organization has 

10 been established for the purposes specified in section 103. 

11 The President should make such designation only after 

12 consultation with the leadership of each House of Con13 gress. 

14 (b) BOARD OF DIRECTORS.— 

15 (1) APPOINTMENT.—The Egyptian-American 

16 Enterprise Fund shall be governed by a Board of 

17 Directors, which shall be comprised of 4 private citi18 zens of the United States and 3 private citizens of 

19 Egypt, appointed by the President of the United 

20 States in consultation with the Government of 

21 Egypt. 

22 (2) QUALIFICATIONS.—Members of the Board 

23 of Directors shall be selected from among people 

24 who have had successful business careers and dem25 onstrated experience and expertise in international 


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1 and particularly emerging markets investment activi2 ties, such as private equity or venture capital invest3 ment, banking, finance, strategic business con4 sulting, or entrepreneurial business creation, and 

5 backgrounds in priority business sectors of the 

6 Fund. 

7 (3) ADDITIONAL USAID NON-VOTING BOARD

8 MEMBER.—The President shall appoint 1 official or 

9 employee of the United States Agency for Inter10 national Development as an additional non-voting 

11 member of the Board. 

12 (4) ADDITIONAL NON-GOVERNMENT NON-VOT13 ING BOARD MEMBERS.— 

14 (A) AUTHORITY TO APPOINT.—Upon the 

15 recommendation of the Board of Directors, the 

16 President may appoint up to 2 additional non17 voting members to the Board of Directors in 

18 addition to the members specified in paragraphs 

19 (1) and (3), of which not more than 1 may be 

20 a non-citizen of the United States. 

21 (B) NGO COMMUNITY.—One of the addi22 tional nonvoting Board members shall be from 

23 the nongovernmental organization community, 

24 with significant prior experience in development 


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1 and an understanding of development policy 

2 priorities for Egypt. 

3 (C) TECHNICAL EXPERTISE.—One of the 

4 additional non-voting Board members shall have 

5 extensive demonstrated industry, sector, or 

6 technical experience and expertise in a priority 

7 investment sector for the Fund. 

8 (c) GRANTS.— 

9 (1) IN GENERAL.—The President may use 

10 funds appropriated by any Act, in this fiscal year or 

11 prior fiscal years, making appropriations for the De12 partment of State, foreign operations, and related 

13 programs, including funds previously obligated, that 

14 are otherwise available for such purposes, notwith15 standing any other provision of law— 

16 (A) to carry out the purposes set forth in 

17 section 103 through the Egyptian-American 

18 Enterprise Fund; and 

19 (B) to pay for the administrative expenses 

20 of the Egyptian-American Enterprise Fund, 

21 which shall not exceed 5 percent of the amounts 

22 made available for the Fund. 

23 (2) ELIGIBLE PROGRAMS AND PROJECTS.— 

24 Grants awarded under this section may only be used 


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1 for programs and projects that support the purposes 

2 set forth in section 103. 

3 (3) COMPLIANCE REQUIREMENTS.— 

4 (A) IN GENERAL.—Grants may not be 

5 awarded to the Egyptian-American Enterprise 

6 Fund under this section unless the Fund agrees 

7 to comply with the requirements under this sec8 tion. 

9 (B) GRANT AGREEMENT.—The grant 

10 agreement between the United States Agency 

11 for International Development and the Egyp12 tian-American Enterprise Fund shall state that 

13 the Fund shall liquidate its assets and dissolve 

14 not later than December 31, 2021, unless the 

15 Secretary of State, in consultation with the Ad16 ministrator of the United States Agency for 

17 International Development, and after consulta18 tion with the appropriate congressional commit19 tees, determines that the Fund should be ex20 tended. 

21 (C) PREVENTION OF MONEY LAUNDERING

22 AND TERRORIST FINANCING.—The grant agree23 ment between the United States Agency for 

24 International Development and the Egyptian25 American Enterprise Fund shall state that the 


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1 Fund shall comply with procedures specified by 

2 the Secretary of State to ensure that grant 

3 funds are not provided by the Fund to or 

4 through any individual, private or government 

5 entity, or educational institution that advocates, 

6 plans, sponsors, engages in, or has engaged in, 

7 money laundering or terrorist activity or, with 

8 respect to a private entity or educational insti9 tution, that has as a principal officer of the en10 tity’s governing board or governing board of 

11 trustees any individual that has been deter12 mined to be involved in or advocating money 

13 laundering or terrorist activity or determined to 

14 be a member of a designated foreign terrorist 

15 organization. 

16 (D) DISPOSITION OF ASSETS.—The assets 

17 of the Egyptian-American Enterprise Fund at 

18 the time the Fund is dissolved shall be returned 

19 to the General Fund of the United States 

20 Treasury and used to reduce the debt of the 

21 United States. 

22 (d) NOTIFICATION.— 

23 (1) IN GENERAL.—Not later than 15 days be24 fore designating an organization to operate as the 

25 Egyptian-American Enterprise Fund pursuant to 


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1 subsection (a), the President shall provide the infor2 mation described in paragraph (2) to the Chairman 

3 and Ranking Member of the appropriate congres4 sional committees. 

5 (2) INFORMATION.—The information described 

6 in this paragraph is— 

7 (A) the identity of the organization to be 

8 designated to operate as the Egyptian-American 

9 Enterprise Fund pursuant to subsection (a); 

10 (B) the names and qualifications of the in11 dividuals who will comprise the initial Board of 

12 Directors; and 

13 (C) the procedures referred to in sub14 section (c)(3)(C) that will apply to the Egyp15 tian-American Enterprise Fund for purposes of 

16 curtailing money-laundering and terrorist fi17 nancing activities. 

18 (e) PUBLIC DISCLOSURE.—Not later than 1 year 

19 after the entry into force of the initial grant agreement 

20 under this section, and annually thereafter, the Fund shall 

21 prepare and make available to the public on an Internet 

22 Web site administered by the Fund a report on the Fund’s 

23 activities during the previous year, including— 


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1 (1) a description of each investment or project 

2 supported by the Fund, including each type of as3 sistance provided in accordance with section 103(2); 

4 (2) the amounts invested by the Fund in each 

5 company or project; 

6 (3) the amounts of additional private invest7 ments made in each company or project; and 

8 (4) the amounts of any profits or losses realized 

9 by the Fund in connection with each such company 

10 or project. 

11 SEC. 105. REPORTS. 

12 (a) ADMINISTRATIVE EXPENSES.—Not later than 1 

13 year after the date of the enactment of this Act, and annu14 ally thereafter until the Fund is dissolved, the Fund shall 

15 submit to the appropriate congressional committees a re16 port detailing the administrative expenses of the Fund. 

17 (b) GAO REPORT.—Not later than 3 years after the 

18 date of the enactment of this Act, and every 3 years there19 after until the Fund is dissolved, the Comptroller General 

20 of the United States shall submit to the appropriate con21 gressional committees a report assessing the activities of 

22 the Fund in achieving the stated goals of promoting pri23 vate sector investment and employment in Egypt and iden24 tifying those institutional or regulatory constraints that 

25 inhibit a more effective application of Fund resources. 


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1 SEC. 106. OPERATION PROVISIONS. 

2 (a) APPLICABLE PROVISIONS.—Subsections (d)(5), 

3 (g), (h), (i), (k), (l), (m), (n), (o), and (p) of section 201 

4 of the Support for East European Democracy (SEED) 

5 Act of 1989 (22 U.S.C. 5421) shall apply with respect 

6 to the Egyptian-American Enterprise Fund in the same 

7 manner as such provisions apply to Enterprise Funds des8 ignated pursuant to subsection (d) of such section. 

9 (b) REINVESTMENT.—Returns on investments of the 

10 Egyptian-American Enterprise Fund and other payments 

11 to the Fund may be reinvested in projects carried out by 

12 the Fund without further appropriation by Congress. 

13 SEC. 107. BEST PRACTICES AND PROCEDURES. 

14 To the maximum extent practicable, the Board of Di15 rectors of the Egyptian-American Enterprise Fund should 

16 adopt the best practices and procedures used by Enter17 prise Funds, including those for which funding has been 

18 made available pursuant to section 201 of the Support for 

19 East European Democracy (SEED) Act of 1989 (22 

20 U.S.C. 5421). 

21 SEC. 108. EXPERIENCE OF OTHER ENTERPRISE FUNDS. 

22 In implementing this title, the President shall ensure 

23 that the Articles of Incorporation of the Egyptian-Amer24 ican Enterprise Fund (including provisions specifying the 

25 responsibilities of the Board of Directors of the Fund), 

26 the terms of United States Government grant agreements 


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1 with the Fund, and United States Government oversight 

2 of the Fund are, to the maximum extent practicable, con3 sistent with the Articles of Incorporation of, the terms of 

4 grant agreements with, and the oversight of the Enter5 prise Funds established pursuant to section 201 of the 

6 Support for East European Democracy (SEED) Act of 

7 1989 (22 U.S.C. 5421) and comparable provisions of law. 

8 TITLE II—TUNISIAN-AMERICAN 

9 ENTERPRISE FUND 

10 SEC. 201. SHORT TITLE. 

11 This title may be cited as the ‘‘Tunisian-American 

12 Enterprise Fund Act’’. 

13 SEC. 202. PURPOSE AND FINDINGS. 

14 (a) PURPOSE.—The purpose of this title is to support 

15 a transition to democracy in Tunisia that is successful, 

16 lasting, and reflective of the aspirations of the Tunisian 

17 people for greater economic opportunity and political free18 dom through the creation of a Tunisian-American Enter19 prise Fund that will support economic prosperity through 

20 financial investment and technical assistance to small- and 

21 medium-sized enterprises. 

22 (b) FINDINGS.—Congress makes the following find23 ings: 

24 (1) The United States and Tunisia have a 

25 strong, long-standing bilateral relationship. 


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1 (2) Tunisia— 

2 (A) plays an important strategic role in 

3 promoting peace and security in North Africa, 

4 the broader Middle East, and elsewhere; and 

5 (B) has been, and continues to be, a re6 gional center for foreign investment and tour7 ism. 

8 (3) On December 18, 2010, after the self-immo9 lation of a young street vendor, Mohamed Bouazizi, 

10 protests broke out in Sidi Bouzid, Tunisia. 

11 (4) The protests, which quickly spread across 

12 Tunisia, involved peaceful demonstrators calling 

13 for— 

14 (A) a new government; 

15 (B) free and fair elections; 

16 (C) significant political reforms; 

17 (D) greater economic opportunity; and 

18 (E) an end to government corruption. 

19 (5) The protests culminated in the ouster of 

20 President Zine el-Abidine Ben Ali on January 14, 

21 2011, inspiring democracy activists throughout the 

22 region and around the world. 

23 (6) The United States has a strong interest 

24 in— 


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1 (A) an orderly and peaceful transition to 

2 democracy in Tunisia; and 

3 (B) assisting the people of Tunisia to form 

4 a representative and democratic political and 

5 economic system that respects universal values. 

6 (7) Tunisia— 

7 (A) has a well-educated and secular popu8 lation that displayed extraordinary determina9 tion in forcing President Ben Ali to abdicate; 

10 and 

11 (B) is well-positioned to make a successful 

12 democratic transition. 

13 (8) In 2010— 

14 (A) the inflation rate in Tunisia was ap15 proximately 4.4 percent; 

16 (B) Tunisia’s foreign debt was equal to 46 

17 percent of its $44,000,000,000 gross domestic 

18 product (GDP); and 

19 (C) according to The Peterson Institute of 

20 Economics, Tunisia was the only country in the 

21 region in which per capita incomes have gradu22 ally converged with the industrial democracies 

23 of the Organization of Economic Cooperation 

24 and Development (OECD). 


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1 (9) According to the World Economic Forum’s 

2 2010–2011 Global Competitiveness Report— 

3 (A) Tunisia ranks first in competitiveness 

4 among African nations; and 

5 (B) Tunisia’s most problematic factor for 

6 doing business is lack of access to financing. 

7 (10) According to the International Monetary 

8 Fund (IMF), Tunisia had weathered the global eco9 nomic crisis well, having entered the crisis with 

10 strong fundamentals. 

11 (11) As a result of the dramatic events in Tuni12 sia during January 2011— 

13 (A) Tunisia’s economy was brought to a 

14 near standstill and continues to feel lingering 

15 effects; 

16 (B) Tunisia’s debt rating was downgraded; 

17 (C) tourism revenues, which are respon18 sible for an estimated 8.6 percent of direct con19 tribution to Tunisia’s GDP, have dropped an 

20 estimated 40 percent compared to the previous 

21 year; 

22 (D) industrial output and investment activ23 ity in Tunisia are experiencing significant 

24 short-term reductions; and 


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1 (E) the value of the Tunisian stock market 

2 fell by 14 percent. 

3 (12) The Fitch Rating Agency concluded, ‘‘Al4 though the transition to democracy could well im5 prove confidence in the long-term, political upheaval 

6 has worsened the short-term outlook for the econ7 omy, public finances and financial system’’. 

8 (13) Analysts estimate that the recent events in 

9 Tunisia— 

10 (A) will increase government deficits in 

11 Tunisia for the next 2 years, due in part to new 

12 government spending; and 

13 (B) has shaken the Tunisian economy, al14 though Tunisia’s medium-term growth outlook 

15 remains relatively good. 

16 (14) According to IMF’s Middle East and Cen17 tral Asia Department— 

18 (A) Tunisia’s tourism and foreign direct 

19 investment (FDI) inflows will continue to de20 cline, which will negatively impact the rest of 

21 the Tunisian economy; 

22 (B) recent events in Tunisia have illus23 trated the need for more inclusive growth and 

24 better governance in Tunisia; and 


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1 (C) it is important to recognize that the 

2 Tunisian society has enduring strengths. 

3 (15) The World Bank estimates that Tunisian 

4 banks may face stress as second round effects of the 

5 slowdown in businesses and investment permeate. 

6 (16) Foreign direct investment, which is a cru7 cial component of Tunisia’s economic health, created 

8 24 percent of the new jobs in 2009, according to 

9 Tunisia’s Ministry of Planning and International 

10 Cooperation. 

11 (17) According to the African Development 

12 Bank— 

13 (A) Tunisia has pursued governance re14 forms in an effort to increase FDI and boost 

15 local enterprises; and 

16 (B) Small- and medium-sized enterprises 

17 in Tunisia require support to access finance 

18 outside of the traditional lines of credit because 

19 sources of finance for enterprises in Tunisia are 

20 weak. 

21 (18) According to the most recent official esti22 mates— 

23 (A) the unemployment rate in Tunisia is 

24 13 percent; 


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1 (B) the youth unemployment rate is 30.7 

2 percent; and 

3 (C) 51 percent of the population of Tunisia 

4 is younger than 30 years of age. 

5 (19) To help foster and support the fledgling 

6 private sector after the fall of the Berlin Wall, Con7 gress, through enactment of the Support for East 

8 European Democracy (SEED) Act of 1989 (22 

9 U.S.C. 5401 et seq.) and the FREEDOM Support 

10 Act (22 U.S.C. 5801 et seq.), authorized nearly 

11 $1,200,000,000 for the United States Agency for 

12 International Development (USAID) to establish 10 

13 new investment funds (collectively known as the 

14 ‘‘Enterprise Funds’’) throughout Central and East15 ern Europe and the former Soviet Union. 

16 (20) The Enterprise Funds— 

17 (A) channeled funding into more than 500 

18 enterprises in 19 countries; 

19 (B) leveraged an additional 

20 $5,000,000,000 in private investment capital 

21 from outside the United States Government; 

22 (C) provided substantial development cap23 ital where supply was limited; 


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1 (D) created or sustained more than 

2 260,000 jobs through investment and develop3 ment activities; 

4 (E) funded $74,000,000 in technical as5 sistance to strengthen the private sector; and 

6 (F) are expected to recoup 137 percent of 

7 the original USAID funding. 

8 (21) Enterprise Funds established in partner9 ship with United States partners, such as Poland, 

10 Hungary, Albania, Russia, and other European 

11 countries, have proven beneficial to the economies of 

12 such countries. 

13 (22) Creating a similar fund in close partner14 ship with the people of Tunisia would— 

15 (A) help sustain and expand reform efforts 

16 in Tunisia; 

17 (B) empower Tunisian entrepreneurs with 

18 the resources required to create urgently needed 

19 employment opportunities; 

20 (C) help reinforce financial institutions 

21 within the country; 

22 (D) provide debt and equity investment for 

23 commercially viable SMEs; and 


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1 (E) make the investment environment 

2 more attractive to domestic and international 

3 investors. 

4 SEC. 203. PURPOSES OF TUNISIAN-AMERICAN ENTERPRISE 

5 FUND. 

6 The purposes of the Tunisian-American Enterprise 

7 Fund are— 

8 (1) to promote the private sector in Tunisia, 

9 while considering the development impact of invest10 ments and profitability of those investments, par11 ticularly in small- and medium-sized enterprises, and 

12 joint ventures with participants from the United 

13 States and Tunisia; 

14 (2) to promote policies and practices conducive 

15 to strengthening the private sector in Tunisia 

16 through measures including loans, microloans, equity 

17 investments, insurance, guarantees, grants, feasi18 bility studies, technical assistance, training for busi19 nesses receiving investment capital, and other meas20 ures; 

21 (3) to promote good corporate governance and 

22 transparency in Tunisia, foster competition, catalyze 

23 productivity improvements in existing businesses, 

24 and strengthen local capital markets; and 


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1 (4) to promote security through job creation in 

2 the private sector in Tunisia and to further the cre3 ation of a middle class in Tunisia. 

4 SEC. 204. TUNISIAN-AMERICAN ENTERPRISE FUND. 

5 (a) ESTABLISHMENT.—The President is authorized 

6 to establish or designate a private, nonprofit organization 

7 (to be known as the ‘‘Tunisian-American Enterprise 

8 Fund’’) to receive funds and support made available under 

9 this title after determining that such organization has 

10 been established for the purposes specified in section 203. 

11 The President should make such designation only after 

12 consultation with the leadership of each House of Con13 gress. 

14 (b) BOARD OF DIRECTORS.— 

15 (1) APPOINTMENT.—The Tunisian-American 

16 Enterprise Fund shall be governed by a Board of 

17 Directors, which shall be comprised of 4 private citi18 zens of the United States and 3 private citizens of 

19 Tunisia, appointed by the President of the United 

20 States in consultation with the Government of Tuni21 sia. 

22 (2) QUALIFICATIONS.—Members of the Board 

23 of Directors shall be selected from among people 

24 who have had successful business careers and dem25 onstrated experience and expertise in international 


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1 and particularly emerging markets investment activi2 ties, such as private equity or venture capital invest3 ment, banking, finance, strategic business con4 sulting, or entrepreneurial business creation, and 

5 backgrounds in priority business sectors of the 

6 Fund. 

7 (3) ADDITIONAL USAID NON-VOTING BOARD

8 MEMBER.—The President shall appoint 1 official or 

9 employee of the United States Agency for Inter10 national Development as an additional non-voting 

11 member of the Board. 

12 (4) ADDITIONAL NON-GOVERNMENT NON-VOT13 ING BOARD MEMBERS.— 

14 (A) AUTHORITY TO APPOINT.—Upon the 

15 recommendation of the Board of Directors, the 

16 President may appoint up to 2 additional non17 voting members to the Board of Directors in 

18 addition to the members specified in paragraphs 

19 (1) and (3), of which not more than one may 

20 be a non-citizen of the United States. 

21 (B) NGO COMMUNITY.—One of the addi22 tional nonvoting Board members shall be from 

23 the nongovernmental organization community, 

24 with significant prior experience in development 


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1 and an understanding of development policy 

2 priorities for Tunisia. 

3 (C) TECHNICAL EXPERTISE.—One of the 

4 additional non-voting Board members shall have 

5 extensive demonstrated industry, sector, or 

6 technical experience and expertise in a priority 

7 investment sector for the Fund. 

8 (c) GRANTS.— 

9 (1) IN GENERAL.—The President may use 

10 funds appropriated by any Act, in this fiscal year or 

11 prior fiscal years, making appropriations for the De12 partment of State, foreign operations, and related 

13 programs, including funds previously obligated, that 

14 are otherwise available for such purposes, notwith15 standing any other provision of law— 

16 (A) to carry out the purposes specified in 

17 section 203 through the Tunisian-American En18 terprise Fund; and 

19 (B) to pay for the administrative expenses 

20 of the Tunisian-American Enterprise Fund, 

21 which shall not exceed 5 percent of the funds 

22 made available for the Fund. 

23 (2) ELIGIBLE PROGRAMS AND PROJECTS.— 

24 Grants awarded under this section may only be used 


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1 for programs and projects that support the purposes 

2 set forth in section 203. 

3 (3) COMPLIANCE REQUIREMENTS.— 

4 (A) IN GENERAL.—Grants may not be 

5 awarded to the Tunisian-American Enterprise 

6 Fund under this section unless the Fund agrees 

7 to comply with the requirements under this sec8 tion. 

9 (B) GRANT AGREEMENT.—The grant 

10 agreement between the United States Agency 

11 for International Development and the Tuni12 sian-American Enterprise Fund shall state that 

13 the Fund shall liquidate its assets and dissolve 

14 not later than December 31, 2021, unless the 

15 Secretary of State, in consultation with the Ad16 ministrator of the United States Agency for 

17 International Development, and after consulta18 tion with the appropriate congressional commit19 tees, determines that the Fund should be ex20 tended. 

21 (C) PREVENTION OF MONEY LAUNDERING

22 AND TERRORIST FINANCING.—The grant agree23 ment between the United States Agency for 

24 International Development and the Tunisian25 American Enterprise Fund shall state that the 


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1 Fund shall comply with procedures specified by 

2 the Secretary of State to ensure that grant 

3 funds are not provided by the Fund to or 

4 through any individual, private or government 

5 entity, or educational institution that advocates, 

6 plans, sponsors, engages in, or has engaged in, 

7 money laundering or terrorist activity or, with 

8 respect to a private entity or educational insti9 tution, that has as a principal officer of the en10 tity’s governing board or governing board of 

11 trustees any individual that has been deter12 mined to be involved in or advocating money 

13 laundering or terrorist activity or determined to 

14 be a member of a designated foreign terrorist 

15 organization. 

16 (D) DISPOSITION OF ASSETS.—The assets 

17 of the Tunisian-American Enterprise Fund at 

18 the time the Fund is dissolved shall be returned 

19 to the General Fund of the United States 

20 Treasury and used to reduce the debt of the 

21 United States. 

22 (d) NOTIFICATION.— 

23 (1) IN GENERAL.—Not later than 15 days be24 fore designating an organization to operate as the 

25 Tunisian-American Enterprise Fund pursuant to 


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1 subsection (a), the President shall provide the infor2 mation described in paragraph (2) to the Chairman 

3 and Ranking Member of the appropriate congres4 sional committees. 

5 (2) INFORMATION.—The information described 

6 in this paragraph is— 

7 (A) the identity of the organization to be 

8 designated to operate as the Tunisian-American 

9 Enterprise Fund pursuant to subsection (a); 

10 (B) the names and qualifications of the in11 dividuals who will comprise the initial Board of 

12 Directors; and 

13 (C) the procedures referred to in sub14 section (c)(3)(C) that will apply to the Tuni15 sian-American Enterprise Fund for purposes of 

16 curtailing money-laundering and terrorist fi17 nancing activities. 

18 (e) PUBLIC DISCLOSURE.—Not later than 1 year 

19 after the entry into force of the initial grant agreement 

20 under this section, and annually thereafter, the Fund shall 

21 prepare and make available to the public on an Internet 

22 Web site administered by the Fund a report on the Fund’s 

23 activities during the previous year, including— 


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1 (1) a description of each investment or project 

2 supported by the Fund, including each type of as3 sistance provided in accordance with section 203(2); 

4 (2) the amounts invested by the Fund in each 

5 company or project; 

6 (3) the amounts of additional private invest7 ments made in each company or project; and 

8 (4) the amounts of any profits or losses realized 

9 by the Fund in connection with each such company 

10 or project. 

11 SEC. 205. REPORTS. 

12 (a) ADMINISTRATIVE EXPENSES.—Not later than 1 

13 year after the date of the enactment of this Act, and annu14 ally thereafter until the Fund is dissolved, the Fund shall 

15 submit to the appropriate congressional committees a re16 port detailing the administrative expenses of the Fund. 

17 (b) GAO REPORT.—Not later than 3 years after the 

18 date of the enactment of this Act, and every 3 years there19 after until the Fund is dissolved, the Comptroller General 

20 of the United States shall submit to the appropriate con21 gressional committees a report assessing the activities of 

22 the Fund in achieving the stated goals of promoting pri23 vate sector investment and employment in Tunisia and 

24 identifying those institutional or regulatory constraints 

25 that inhibit a more effective application of Fund resources. 


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1 SEC. 206. OPERATION PROVISIONS. 

2 (a) APPLICABLE PROVISIONS.—Subsections (d)(5), 

3 (g), (h), (i), (k), (l), (m), (n), (o), and (p) of section 201 

4 of the Support for East European Democracy (SEED) 

5 Act of 1989 (22 U.S.C. 5421) shall apply with respect 

6 to the Tunisian-American Enterprise Fund in the same 

7 manner as such provisions apply to Enterprise Funds des8 ignated pursuant to subsection (d) of such section. 

9 (b) REINVESTMENT.—Returns on investments of the 

10 Tunisian-American Enterprise Fund and other payments 

11 to the Fund may be reinvested in projects carried out by 

12 the Fund without further appropriation by Congress. 

13 SEC. 207. BEST PRACTICES AND PROCEDURES. 

14 To the maximum extent practicable, the Board of Di15 rectors of the Tunisian-American Enterprise Fund should 

16 adopt the best practices and procedures used by Enter17 prise Funds, including those for which funding has been 

18 made available pursuant to section 201 of the Support for 

19 East European Democracy (SEED) Act of 1989 (22 

20 U.S.C. 5421). 

21 SEC. 208. EXPERIENCE OF OTHER ENTERPRISE FUNDS. 

22 In implementing this title, the President shall ensure 

23 that the Articles of Incorporation of the Tunisian-Amer24 ican Enterprise Fund (including provisions specifying the 

25 responsibilities of the Board of Directors of the Fund), 

26 the terms of United States Government grant agreements 


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1 with the Fund, and United States Government oversight 

2 of the Fund are, to the maximum extent practicable, con3 sistent with the Articles of Incorporation of, the terms of 

4 grant agreements with, and the oversight of the Enter5 prise Funds established pursuant to section 201 of the 

6 Support for East European Democracy (SEED) Act of 

7 1989 (22 U.S.C. 5421) and comparable provisions of law. 

8 SECTION 1. APPROPRIATE CONGRESSIONAL COMMITTEES 

9 DEFINED. 

10 In this Act, the term ‘‘appropriate congressional com11 mittees’’ means— 

12 (1) the Committee on Foreign Relations of the 

13 Senate; 

14 (2) the Committee on Appropriations of the Sen15 ate; 

16 (3) the Committee on Foreign Affairs of the 

17 House of Representatives; and 

18 (4) the Committee on Appropriations of the 

19 House of Representatives. 

20 TITLE I—EGYPT-AMERICAN 

21 ENTERPRISE FUND 

22 SEC. 101. SHORT TITLE. 

23 This title may be cited as the ‘‘Egyptian-American 

24 Enterprise Fund Act’’. 


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1 SEC. 102. PURPOSE AND FINDINGS. 

2 (a) PURPOSE.—The purpose of this title is to support 

3 a transition to democracy in Egypt that is successful, last4 ing, and reflective of the aspirations of the Egyptian people 

5 for greater economic opportunity and political freedom 

6 through the creation of an Egyptian-American Enterprise 

7 Fund that will support economic prosperity through finan8 cial investment and technical assistance to small- and me9 dium-sized enterprises. 

10 (b) FINDINGS.—Congress makes the following findings: 

11 (1) The United States and Egypt have a strong, 

12 long-standing bilateral relationship. 

13 (2) Egypt— 

14 (A) plays an important role in— 

15 (i) global and regional politics; and 

16 (ii) the broader Middle East and North 

17 Africa; and 

18 (B) has been an intellectual, economic, and 

19 cultural center of the Arab world for many 

20 years. 

21 (3) On January 25, 2011, demonstrations began 

22 throughout Egypt in which thousands of protesters 

23 peacefully called for— 

24 (A) a new government; 

25 (B) free and fair elections; 


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1 (C) significant constitutional and political 

2 reforms; 

3 (D) greater economic opportunity; and 

4 (E) an end to government corruption. 

5 (4) The demonstrators’ perseverance in the face 

6 of violence and intimidation— 

7 (A) culminated in the February 11, 2011 

8 resignation of President Hosni Mubarak; and 

9 (B) inspired democracy activists throughout 

10 the region and around the world. 

11 (5) The United States has a strong interest in— 

12 (A) an orderly and peaceful transition to 

13 democracy in Egypt; and 

14 (B) assisting the people of Egypt to form a 

15 representative and democratic political and eco16 nomic system that respects universal values. 

17 (6) Egypt— 

18 (A) has a well-developed civil society and 

19 governing institutions; and 

20 (B) was well-served by— 

21 (i) the extraordinary determination 

22 shown by the people of Egypt in forcing 

23 President Mubarak to abdicate; and 

24 (ii) the restraint demonstrated by the 

25 Egyptian military. 


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1 (7) In 2010— 

2 (A) the inflation rate in Egypt was ap3 proximately 11 percent; and 

4 (B) Egypt’s foreign debt was equal to 16 

5 percent of its $216,000,000,000 gross domestic 

6 product (GDP). 

7 (8) As a result of the dramatic events in Egypt 

8 in February 2011— 

9 (A) Egypt’s economy was brought to a near 

10 standstill and continues to experience lingering 

11 effects; 

12 (B) widespread strikes slowed down Egypt’s 

13 manufacturing output and banks closed down for 

14 intermittent periods; and 

15 (C) the value of the Egyptian stock market 

16 fell by 16 percent in the 2 days before it was 

17 closed on January 30, 2011. 

18 (9) According to analyst estimates, as a result of 

19 recent events in Egypt— 

20 (A) forecasted growth for Egypt’s GDP has 

21 dropped from 6 percent to between 3.1 and 3.5 

22 percent; 

23 (B) the amount of workers’ remittances 

24 coming into Egypt will likely decline; 


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1 (C) the amount of regional securities pur2 chased by foreign investors will likely decrease, 

3 which will require fiscal deficits to be financed 

4 by domestic banks and reduce the availability of 

5 credit for private sector borrowers; 

6 (D) heightened political uncertainty will 

7 likely lead to a downturn in tourism, which ac8 counts for 8.2 percent of Egypt’s GDP and 7 

9 percent of Egypt’s direct employment; and 

10 (E) foreign direct investment (FDI) in 

11 Egypt is predicted to decrease. 

12 (10) The most recent official estimates of the un13 employment rate in Egypt is 9.2 percent. Unofficial 

14 estimates of the current unemployment rate in Egypt 

15 range between 15 and 20 percent. The unemployment 

16 rate for Egyptian youth is estimated at 24.8 percent. 

17 Egyptian women, who are more affected by spikes in 

18 unemployment, face an unemployment rate of nearly 

19 25 percent compared to the 6.7 percent unemployment 

20 rate for Egyptian men. 

21 (11) An estimated 61 percent of the population 

22 of Egypt is younger than 30 years of age. 

23 (12) Private sector employment in Egypt in24 creased from 11,000,000 to 15,100,000 between 1999 

25 and 2007. 


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1 (13) According to the International Finance Cor2 poration’s 2009 ‘‘SME Banking Knowledge Guide’’— 

3 (A) the small and medium enterprise 

4 (SME) market in Egypt was estimated at 

5 160,000; 

6 (B) of these firms, about 98 percent em7 ployed fewer than 50 people; 

8 (C) Egypt had an estimated 2,400,000 

9 microenterprises; and 

10 (D) 68 percent of the SMEs in Egypt have 

11 bank accounts, but only 12 percent of those with 

12 bank accounts had taken out loans. 

13 (14) A challenge for SMEs is that they are not 

14 always considered a significant customer base for 

15 banks and services don’t meet the unique needs of this 

16 market segment. 

17 (15) According to the Government of Egypt’s 

18 Small and Medium Enterprise Development Unit, 

19 SMEs constitute nearly 75 percent of private sector 

20 employment. 

21 (16) According to the World Bank report entitled 

22 ‘‘Access to Finance and Economic Growth in 

23 Egypt’’— 

24 (A) even before the recent political events in 

25 Egypt, private-sector credit to GDP in Egypt 


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1 was modest compared to other developing econo2 mies; 

3 (B) private credit as a share of total credit 

4 has been declining; 

5 (C) the distribution of bank financing is 

6 uneven, with most loans going to large and well7 established enterprises; and 

8 (D) as a consequence, family-owned firms 

9 and SMEs, which represent the majority of firms 

10 in Egypt, rely heavily on the informal market. 

11 (17) To help foster and support the fledgling pri12 vate sector after the fall of the Berlin Wall, Congress, 

13 through enactment of the Support for East European 

14 Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et 

15 seq.) and the FREEDOM Support Act (22 U.S.C. 

16 5801 et seq.), authorized nearly $1,200,000,000 for the 

17 United States Agency for International Development 

18 (USAID) to establish 10 new investment funds (collec19 tively known as the ‘‘Enterprise Funds’’) throughout 

20 Central and Eastern Europe and the former Soviet 

21 Union. 

22 (18) The Enterprise Funds— 

23 (A) channeled funding into more than 500 

24 enterprises in 19 countries; 


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1 (B) leveraged an additional $5,000,000,000 

2 in private investment capital from outside the 

3 United States Government; 

4 (C) provided substantial development cap5 ital where supply was limited; 

6 (D) created or sustained more than 260,000 

7 jobs through investment and development activi8 ties; 

9 (E) funded $74,000,000 in technical assist10 ance to strengthen the private sector; and 

11 (F) are expected to recoup 137 percent of 

12 the original USAID funding. 

13 (19) Enterprise funds established in partnership 

14 with United States partners, such as Poland, Hun15 gary, Albania, Russia, and other European countries, 

16 have proven beneficial to the economies of such coun17 tries. 

18 (20) Creating a similar fund in close partner19 ship with the people of Egypt would help sustain and 

20 expand reform efforts in Egypt and empower Egyp21 tian entrepreneurs with the resources required to cre22 ate urgently needed employment opportunities. 

23 (21) Establishing an enterprise fund for Egypt 

24 would— 


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1 (A) help reinforce financial institutions 

2 within the country; 

3 (B) provide debt and equity investment for 

4 commercially viable SMEs; and 

5 (C) make the investment environment more 

6 attractive to domestic and international inves7 tors. 

8 SEC. 103. PURPOSES OF EGYPTIAN-AMERICAN ENTERPRISE 

9 FUND. 

10 The purposes of the Egyptian-American Enterprise 

11 Fund are— 

12 (1) to promote the private sector in Egypt, while 

13 considering the development impact of investments 

14 and profitability of those investments, particularly in 

15 small- and medium-sized enterprises, and joint ven16 tures with participants from the United States and 

17 Egypt; 

18 (2) to promote policies and practices conducive 

19 to strengthening the private sector in Egypt through 

20 measures including loans, microloans, equity invest21 ments, insurance, guarantees, grants, feasibility stud22 ies, technical assistance, training for businesses re23 ceiving investment capital, and other measures; 

24 (3) to promote good corporate governance and 

25 transparency in Egypt, foster competition, catalyze 


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1 productivity improvements in existing businesses, and 

2 strengthen local capital markets; and 

3 (4) to promote security through job creation in 

4 the private sector in Egypt and to further the cre5 ation of a middle class in Egypt. 

6 SEC. 104. EGYPTIAN-AMERICAN ENTERPRISE FUND. 

7 (a) ESTABLISHMENT.—The President is authorized to 

8 establish or designate a private, nonprofit organization (to 

9 be known as the ‘‘Egyptian-American Enterprise Fund’’) 

10 to receive funds and support made available under this title 

11 after determining that such organization has been estab12 lished for the purposes specified in section 103. The Presi13 dent should make such designation only after consultation 

14 with the leadership of each House of Congress. 

15 (b) BOARD OF DIRECTORS.— 

16 (1) APPOINTMENT.—The Egyptian-American 

17 Enterprise Fund shall be governed by a Board of Di18 rectors, which shall be comprised of 6 private citizens 

19 of the United States and 3 private citizens of Egypt, 

20 appointed by the President of the United States in 

21 consultation with the Government of Egypt. 

22 (2) QUALIFICATIONS.—Members of the Board of 

23 Directors shall be selected from among people who 

24 have had successful business careers and demonstrated 

25 experience and expertise in international and parVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 ticularly emerging markets investment activities, such 

2 as private equity or venture capital investment, bank3 ing, finance, strategic business consulting, or entre4 preneurial business creation, and backgrounds in pri5 ority business sectors of the Fund. 

6 (3) UNITED STATES GOVERNMENT LIAISON TO

7 THE BOARD.—The President shall appoint the United 

8 States Ambassador to Egypt, or the Ambassador’s des9 ignee, as a liaison to the Board. 

10 (4) NON-GOVERNMENT LIAISONS TO THE

11 BOARD.— 

12 (A) AUTHORITY TO APPOINT.—Upon the 

13 recommendation of the Board of Directors, the 

14 President may appoint up to 2 additional liai15 sons to the Board of Directors in addition to the 

16 members specified in paragraphs (1) and (3), of 

17 which not more than 1 may be a non-citizen of 

18 the United States. 

19 (B) NGO COMMUNITY.—One of the addi20 tional liaisons to the Board should be from the 

21 nongovernmental organization community, with 

22 significant prior experience in development and 

23 an understanding of development policy prior24 ities for Egypt. 


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1 (C) TECHNICAL EXPERTISE.—One of the 

2 additional liaisons to the Board should have ex3 tensive demonstrated industry, sector, or tech4 nical experience and expertise in a priority in5 vestment sector for the Fund. 

6 (c) GRANTS.— 

7 (1) IN GENERAL.—The President may use funds 

8 appropriated by any Act, in this fiscal year or prior 

9 fiscal years, making appropriations for the Depart10 ment of State, foreign operations, and related pro11 grams, including funds previously obligated, that are 

12 otherwise available for such purposes, notwith13 standing any other provision of law— 

14 (A) to carry out the purposes set forth in 

15 section 103 through the Egyptian-American En16 terprise Fund; and 

17 (B) to pay for the administrative expenses 

18 of the Egyptian-American Enterprise Fund, 

19 which should not exceed 5 percent of the amounts 

20 made available for the Fund. 

21 (2) ELIGIBLE PROGRAMS AND PROJECTS.— 

22 Grants awarded under this section may only be used 

23 for programs and projects that support the purposes 

24 set forth in section 103. 

25 (3) COMPLIANCE REQUIREMENTS.— 


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1 (A) IN GENERAL.—Grants may not be 

2 awarded to the Egyptian-American Enterprise 

3 Fund under this section unless the Fund agrees 

4 to comply with the requirements under this sec5 tion. 

6 (B) GRANT AGREEMENT.—The grant agree7 ment between the United States Agency for 

8 International Development and the Egyptian9 American Enterprise Fund shall state that the 

10 Fund shall end its reinvestment cycle not later 

11 than December 31, 2021, unless the Secretary of 

12 State, in consultation with the Administrator of 

13 the United States Agency for International De14 velopment, and after consultation with the ap15 propriate congressional committees, determines 

16 that the Fund should be extended. 

17 (C) PREVENTION OF MONEY LAUNDERING

18 AND TERRORIST FINANCING.—The grant agree19 ment between the United States Agency for 

20 International Development and the Egyptian21 American Enterprise Fund shall state that the 

22 Fund shall comply with procedures specified by 

23 the Secretary of State to ensure that grant funds 

24 are not provided by the Fund to or through any 

25 individual, private or government entity, or eduVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 cational institution that advocates, plans, spon2 sors, engages in, or has engaged in, money laun3 dering or terrorist activity or, with respect to a 

4 private entity or educational institution, that 

5 has as a principal officer of the entity’s gov6 erning board or governing board of trustees any 

7 individual that has been determined to be in8 volved in or advocating money laundering or ter9 rorist activity or determined to be a member of 

10 a designated foreign terrorist organization. 

11 (D) DISPOSITION OF ASSETS.—The assets of 

12 the Egyptian-American Enterprise Fund at the 

13 time the Fund is dissolved shall be returned to 

14 the General Fund of the United States Treasury 

15 and used to reduce the debt of the United States. 

16 (d) NOTIFICATION.— 

17 (1) IN GENERAL.—Not later than 15 days before 

18 designating an organization to operate as the Egyp19 tian-American Enterprise Fund pursuant to sub20 section (a), the President shall provide the informa21 tion described in paragraph (2) to the Chairman and 

22 Ranking Member of the appropriate congressional 

23 committees. 

24 (2) INFORMATION.—The information described 

25 in this paragraph is— 


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1 (A) the identity of the organization to be 

2 designated to operate as the Egyptian-American 

3 Enterprise Fund pursuant to subsection (a); 

4 (B) the names and qualifications of the in5 dividuals who will comprise the initial Board of 

6 Directors; 

7 (C) the procedures referred to in subsection 

8 (c)(3)(C) that will apply to the Egyptian-Amer9 ican Enterprise Fund for purposes of curtailing 

10 money-laundering and terrorist financing activi11 ties; and 

12 (D) the amount of the grant intended to 

13 fund the Egyptian-American Enterprise Fund. 

14 (e) PUBLIC DISCLOSURE.—Not later than 1 year after 

15 the entry into force of the initial grant agreement under 

16 this section, and annually thereafter, the Fund shall pre17 pare and make available to the public on an Internet Web 

18 site administered by the Fund a report on the Fund’s ac19 tivities during the previous year, including— 

20 (1) a description of each investment or project 

21 supported by the Fund, including each type of assist22 ance provided in accordance with section 103(2); 

23 (2) the amounts invested by the Fund in each 

24 company or project; 


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1 (3) the amounts of additional private invest2 ments made in each company or project; and 

3 (4) the amounts of any profits or losses realized 

4 by the Fund in connection with each such company 

5 or project. 

6 SEC. 105. REPORTS. 

7 (a) ADMINISTRATIVE EXPENSES.—Not later than 1 

8 year after the date of the enactment of this Act, and annu9 ally thereafter until the Fund is dissolved, the Fund shall 

10 submit to the appropriate congressional committees a report 

11 detailing the administrative expenses of the Fund. 

12 (b) GAO REPORT.—Not later than 3 years after the 

13 date of the enactment of this Act, and every 3 years there14 after until the Fund is dissolved, the Comptroller General 

15 of the United States shall submit to the appropriate con16 gressional committees a report assessing the activities of the 

17 Fund in achieving the stated goals of promoting private 

18 sector investment and employment in Egypt and identi19 fying those institutional or regulatory constraints that in20 hibit a more effective application of Fund resources. 

21 SEC. 106. OPERATION PROVISIONS. 

22 (a) APPLICABLE PROVISIONS.—Subsections (d)(5), (g), 

23 (h), (i), (k), (l), (m), (n), (o), and (p) of section 201 of 

24 the Support for East European Democracy (SEED) Act of 

25 1989 (22 U.S.C. 5421) shall apply with respect to the EgypVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 tian-American Enterprise Fund in the same manner as 

2 such provisions apply to Enterprise Funds designated pur3 suant to subsection (d) of such section. 

4 (b) REINVESTMENT.—Returns on investments of the 

5 Egyptian-American Enterprise Fund and other payments 

6 to the Fund may be reinvested in projects carried out by 

7 the Fund without further appropriation by Congress. 

8 SEC. 107. BEST PRACTICES AND PROCEDURES. 

9 To the maximum extent practicable, the Board of Di10 rectors of the Egyptian-American Enterprise Fund should 

11 adopt the best practices and procedures used by Enterprise 

12 Funds, including those for which funding has been made 

13 available pursuant to section 201 of the Support for East 

14 European Democracy (SEED) Act of 1989 (22 U.S.C. 

15 5421). 

16 SEC. 108. EXPERIENCE OF OTHER ENTERPRISE FUNDS. 

17 In implementing this title, the President shall ensure 

18 that the Articles of Incorporation of the Egyptian-American 

19 Enterprise Fund (including provisions specifying the re20 sponsibilities of the Board of Directors of the Fund), the 

21 terms of United States Government grant agreements with 

22 the Fund, and United States Government oversight of the 

23 Fund are, to the maximum extent practicable, consistent 

24 with the Articles of Incorporation of, the terms of grant 

25 agreements with, and the oversight of the Enterprise Funds 


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1 established pursuant to section 201 of the Support for East 

2 European Democracy (SEED) Act of 1989 (22 U.S.C. 

3 5421) and comparable provisions of law. 

4 TITLE II—TUNISIAN-AMERICAN 

5 ENTERPRISE FUND 

6 SEC. 201. SHORT TITLE. 

7 This title may be cited as the ‘‘Tunisian-American En8 terprise Fund Act’’. 

9 SEC. 202. PURPOSE AND FINDINGS. 

10 (a) PURPOSE.—The purpose of this title is to support 

11 a transition to democracy in Tunisia that is successful, 

12 lasting, and reflective of the aspirations of the Tunisian 

13 people for greater economic opportunity and political free14 dom through the creation of a Tunisian-American Enter15 prise Fund that will support economic prosperity through 

16 financial investment and technical assistance to small- and 

17 medium-sized enterprises. 

18 (b) FINDINGS.—Congress makes the following findings: 

19 (1) The United States and Tunisia have a 

20 strong, long-standing bilateral relationship. 

21 (2) Tunisia— 

22 (A) plays an important strategic role in 

23 promoting peace and security in North Africa, 

24 the broader Middle East, and elsewhere; and 


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1 (B) has been, and continues to be, a re2 gional center for foreign investment and tourism. 

3 (3) On December 18, 2010, after the self-immola4 tion of a young street vendor, Mohamed Bouazizi, 

5 protests broke out in Sidi Bouzid, Tunisia. 

6 (4) The protests, which quickly spread across Tu7 nisia, involved peaceful demonstrators calling for— 

8 (A) a new government; 

9 (B) free and fair elections; 

10 (C) significant political reforms; 

11 (D) greater economic opportunity; and 

12 (E) an end to government corruption. 

13 (5) The protests culminated in the ouster of 

14 President Zine el-Abidine Ben Ali on January 14, 

15 2011, inspiring democracy activists throughout the re16 gion and around the world. 

17 (6) The United States has a strong interest in— 

18 (A) an orderly and peaceful transition to 

19 democracy in Tunisia; and 

20 (B) assisting the people of Tunisia to form 

21 a representative and democratic political and 

22 economic system that respects universal values. 

23 (7) Tunisia— 

24 (A) has a well-educated and secular popu25 lation that displayed extraordinary determinaVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 tion in forcing President Ben Ali to abdicate; 

2 and 

3 (B) is well-positioned to make a successful 

4 democratic transition. 

5 (8) In 2010— 

6 (A) the inflation rate in Tunisia was ap7 proximately 4.4 percent; 

8 (B) Tunisia’s foreign debt was equal to 46 

9 percent of its $44,000,000,000 gross domestic 

10 product (GDP); and 

11 (C) according to The Peterson Institute of 

12 Economics, Tunisia was the only country in the 

13 region in which per capita incomes have gradu14 ally converged with the industrial democracies of 

15 the Organization of Economic Cooperation and 

16 Development (OECD). 

17 (9) According to the World Economic Forum’s 

18 2010–2011 Global Competitiveness Report— 

19 (A) Tunisia ranks first in competitiveness 

20 among African nations; and 

21 (B) Tunisia’s most problematic factor for 

22 doing business is lack of access to financing. 

23 (10) According to the International Monetary 

24 Fund (IMF), Tunisia had weathered the global ecoVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 nomic crisis well, having entered the crisis with 

2 strong fundamentals. 

3 (11) As a result of the dramatic events in Tuni4 sia during January 2011— 

5 (A) Tunisia’s economy was brought to a 

6 near standstill and continues to feel lingering ef7 fects; 

8 (B) Tunisia’s debt rating was downgraded; 

9 (C) tourism revenues, which are responsible 

10 for an estimated 8.6 percent of direct contribu11 tion to Tunisia’s GDP, have dropped an esti12 mated 40 percent compared to the previous year; 

13 (D) industrial output and investment activ14 ity in Tunisia are experiencing significant 

15 short-term reductions; and 

16 (E) the value of the Tunisian stock market 

17 fell by 14 percent. 

18 (12) The Fitch Rating Agency concluded, ‘‘Al19 though the transition to democracy could well im20 prove confidence in the long-term, political upheaval 

21 has worsened the short-term outlook for the economy, 

22 public finances and financial system’’. 

23 (13) Analysts estimate that the recent events in 

24 Tunisia— 


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1 (A) will increase government deficits in Tu2 nisia for the next 2 years, due in part to new 

3 government spending; and 

4 (B) has shaken the Tunisian economy, al5 though Tunisia’s medium-term growth outlook 

6 remains relatively good. 

7 (14) According to IMF’s Middle East and Cen8 tral Asia Department— 

9 (A) Tunisia’s tourism and foreign direct in10 vestment (FDI) inflows will continue to decline, 

11 which will negatively impact the rest of the Tu12 nisian economy; 

13 (B) recent events in Tunisia have illus14 trated the need for more inclusive growth and 

15 better governance in Tunisia; and 

16 (C) it is important to recognize that the Tu17 nisian society has enduring strengths. 

18 (15) The World Bank estimates that Tunisian 

19 banks may face stress as second round effects of the 

20 slowdown in businesses and investment permeate. 

21 (16) Foreign direct investment, which is a cru22 cial component of Tunisia’s economic health, created 

23 24 percent of the new jobs in 2009, according to 

24 Tunisia’s Ministry of Planning and International 

25 Cooperation. 


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1 (17) According to the African Development 

2 Bank— 

3 (A) Tunisia has pursued governance re4 forms in an effort to increase FDI and boost 

5 local enterprises; and 

6 (B) Small- and medium-sized enterprises in 

7 Tunisia require support to access finance outside 

8 of the traditional lines of credit because sources 

9 of finance for enterprises in Tunisia are weak. 

10 (18) According to the most recent official esti11 mates— 

12 (A) the unemployment rate in Tunisia is 13 

13 percent; 

14 (B) the youth unemployment rate is 30.7 

15 percent; and 

16 (C) 51 percent of the population of Tunisia 

17 is younger than 30 years of age. 

18 (19) To help foster and support the fledgling pri19 vate sector after the fall of the Berlin Wall, Congress, 

20 through enactment of the Support for East European 

21 Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et 

22 seq.) and the FREEDOM Support Act (22 U.S.C. 

23 5801 et seq.), authorized nearly $1,200,000,000 for the 

24 United States Agency for International Development 

25 (USAID) to establish 10 new investment funds (collecVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 tively known as the ‘‘Enterprise Funds’’) throughout 

2 Central and Eastern Europe and the former Soviet 

3 Union. 

4 (20) The Enterprise Funds— 

5 (A) channeled funding into more than 500 

6 enterprises in 19 countries; 

7 (B) leveraged an additional $5,000,000,000 

8 in private investment capital from outside the 

9 United States Government; 

10 (C) provided substantial development cap11 ital where supply was limited; 

12 (D) created or sustained more than 260,000 

13 jobs through investment and development activi14 ties; 

15 (E) funded $74,000,000 in technical assist16 ance to strengthen the private sector; and 

17 (F) are expected to recoup 137 percent of 

18 the original USAID funding. 

19 (21) Enterprise Funds established in partnership 

20 with United States partners, such as Poland, Hun21 gary, Albania, Russia, and other European countries, 

22 have proven beneficial to the economies of such coun23 tries. 

24 (22) Creating a similar fund in close partner25 ship with the people of Tunisia would— 


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1 (A) help sustain and expand reform efforts 

2 in Tunisia; 

3 (B) empower Tunisian entrepreneurs with 

4 the resources required to create urgently needed 

5 employment opportunities; 

6 (C) help reinforce financial institutions 

7 within the country; 

8 (D) provide debt and equity investment for 

9 commercially viable SMEs; and 

10 (E) make the investment environment more 

11 attractive to domestic and international inves12 tors. 

13 SEC. 203. PURPOSES OF TUNISIAN-AMERICAN ENTERPRISE 

14 FUND. 

15 The purposes of the Tunisian-American Enterprise 

16 Fund are— 

17 (1) to promote the private sector in Tunisia, 

18 while considering the development impact of invest19 ments and profitability of those investments, particu20 larly in small- and medium-sized enterprises, and 

21 joint ventures with participants from the United 

22 States and Tunisia; 

23 (2) to promote policies and practices conducive 

24 to strengthening the private sector in Tunisia through 

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1 ments, insurance, guarantees, grants, feasibility stud2 ies, technical assistance, training for businesses re3 ceiving investment capital, and other measures; 

4 (3) to promote good corporate governance and 

5 transparency in Tunisia, foster competition, catalyze 

6 productivity improvements in existing businesses, and 

7 strengthen local capital markets; and 

8 (4) to promote security through job creation in 

9 the private sector in Tunisia and to further the cre10 ation of a middle class in Tunisia. 

11 SEC. 204. TUNISIAN-AMERICAN ENTERPRISE FUND. 

12 (a) ESTABLISHMENT.—The President is authorized to 

13 establish or designate a private, nonprofit organization (to 

14 be known as the ‘‘Tunisian-American Enterprise Fund’’) 

15 to receive funds and support made available under this title 

16 after determining that such organization has been estab17 lished for the purposes specified in section 203. The Presi18 dent should make such designation only after consultation 

19 with the leadership of each House of Congress. 

20 (b) BOARD OF DIRECTORS.— 

21 (1) APPOINTMENT.—The Tunisian-American 

22 Enterprise Fund shall be governed by a Board of Di23 rectors, which shall be comprised of 6 private citizens 

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1 sia, appointed by the President of the United States 

2 in consultation with the Government of Tunisia. 

3 (2) QUALIFICATIONS.—Members of the Board of 

4 Directors shall be selected from among people who 

5 have had successful business careers and demonstrated 

6 experience and expertise in international and par7 ticularly emerging markets investment activities, such 

8 as private equity or venture capital investment, bank9 ing, finance, strategic business consulting, or entre10 preneurial business creation, and backgrounds in pri11 ority business sectors of the Fund. 

12 (3) UNITED STATES GOVERNMENT LIAISON TO

13 THE BOARD.—The President shall appoint the United 

14 States Ambassador to Tunisia, or the Ambassador’s 

15 designee, as a liaison to the Board. 

16 (4) NON-GOVERNMENT LIAISONS TO THE

17 BOARD.— 

18 (A) AUTHORITY TO APPOINT.—Upon the 

19 recommendation of the Board of Directors, the 

20 President may appoint up to 2 additional liai21 sons to the Board of Directors in addition to the 

22 members specified in paragraphs (1) and (3), of 

23 which not more than one may be a non-citizen 

24 of the United States. 


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1 (B) NGO COMMUNITY.—One of the addi2 tional liaisons to the Board should be from the 

3 nongovernmental organization community, with 

4 significant prior experience in development and 

5 an understanding of development policy prior6 ities for Tunisia. 

7 (C) TECHNICAL EXPERTISE.—One of the 

8 additional liaisons to the Board should have ex9 tensive demonstrated industry, sector, or tech10 nical experience and expertise in a priority in11 vestment sector for the Fund. 

12 (c) GRANTS.— 

13 (1) IN GENERAL.—The President may use funds 

14 appropriated by any Act, in this fiscal year or prior 

15 fiscal years, making appropriations for the Depart16 ment of State, foreign operations, and related pro17 grams, including funds previously obligated, that are 

18 otherwise available for such purposes, notwith19 standing any other provision of law— 

20 (A) to carry out the purposes specified in 

21 section 203 through the Tunisian-American En22 terprise Fund; and 

23 (B) to pay for the administrative expenses 

24 of the Tunisian-American Enterprise Fund, 


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1 which should not exceed 5 percent of the funds 

2 made available for the Fund. 

3 (2) ELIGIBLE PROGRAMS AND PROJECTS.— 

4 Grants awarded under this section may only be used 

5 for programs and projects that support the purposes 

6 set forth in section 203. 

7 (3) COMPLIANCE REQUIREMENTS.— 

8 (A) IN GENERAL.—Grants may not be 

9 awarded to the Tunisian-American Enterprise 

10 Fund under this section unless the Fund agrees 

11 to comply with the requirements under this sec12 tion. 

13 (B) GRANT AGREEMENT.—The grant agree14 ment between the United States Agency for 

15 International Development and the Tunisian16 American Enterprise Fund shall state that the 

17 Fund shall end its reinvestment cycle not later 

18 than December 31, 2021, unless the Secretary of 

19 State, in consultation with the Administrator of 

20 the United States Agency for International De21 velopment, and after consultation with the ap22 propriate congressional committees, determines 

23 that the Fund should be extended. 

24 (C) PREVENTION OF MONEY LAUNDERING

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1 ment between the United States Agency for 

2 International Development and the Tunisian3 American Enterprise Fund shall state that the 

4 Fund shall comply with procedures specified by 

5 the Secretary of State to ensure that grant funds 

6 are not provided by the Fund to or through any 

7 individual, private or government entity, or edu8 cational institution that advocates, plans, spon9 sors, engages in, or has engaged in, money laun10 dering or terrorist activity or, with respect to a 

11 private entity or educational institution, that 

12 has as a principal officer of the entity’s gov13 erning board or governing board of trustees any 

14 individual that has been determined to be in15 volved in or advocating money laundering or ter16 rorist activity or determined to be a member of 

17 a designated foreign terrorist organization. 

18 (D) DISPOSITION OF ASSETS.—The assets of 

19 the Tunisian-American Enterprise Fund at the 

20 time the Fund is dissolved shall be returned to 

21 the General Fund of the United States Treasury 

22 and used to reduce the debt of the United States. 

23 (d) NOTIFICATION.— 

24 (1) IN GENERAL.—Not later than 15 days before 

25 designating an organization to operate as the TuniVerDate Mar 15 2010 22:35 Jun 22, 2011 Jkt 099200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6203 E:\BILLS\S618.RS S618

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1 sian-American Enterprise Fund pursuant to sub2 section (a), the President shall provide the informa3 tion described in paragraph (2) to the Chairman and 

4 Ranking Member of the appropriate congressional 

5 committees. 

6 (2) INFORMATION.—The information described 

7 in this paragraph is— 

8 (A) the identity of the organization to be 

9 designated to operate as the Tunisian-American 

10 Enterprise Fund pursuant to subsection (a); 

11 (B) the names and qualifications of the in12 dividuals who will comprise the initial Board of 

13 Directors; 

14 (C) the procedures referred to in subsection 

15 (c)(3)(C) that will apply to the Tunisian-Amer16 ican Enterprise Fund for purposes of curtailing 

17 money-laundering and terrorist financing activi18 ties; and 

19 (D) the amount of the grant intended to 

20 fund the Tunisian-American Enterprise Fund. 

21 (e) PUBLIC DISCLOSURE.—Not later than 1 year after 

22 the entry into force of the initial grant agreement under 

23 this section, and annually thereafter, the Fund shall pre24 pare and make available to the public on an Internet Web 


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1 site administered by the Fund a report on the Fund’s ac2 tivities during the previous year, including— 

3 (1) a description of each investment or project 

4 supported by the Fund, including each type of assist5 ance provided in accordance with section 203(2); 

6 (2) the amounts invested by the Fund in each 

7 company or project; 

8 (3) the amounts of additional private invest9 ments made in each company or project; and 

10 (4) the amounts of any profits or losses realized 

11 by the Fund in connection with each such company 

12 or project. 

13 SEC. 205. REPORTS. 

14 (a) ADMINISTRATIVE EXPENSES.—Not later than 1 

15 year after the date of the enactment of this Act, and annu16 ally thereafter until the Fund is dissolved, the Fund shall 

17 submit to the appropriate congressional committees a report 

18 detailing the administrative expenses of the Fund. 

19 (b) GAO REPORT.—Not later than 3 years after the 

20 date of the enactment of this Act, and every 3 years there21 after until the Fund is dissolved, the Comptroller General 

22 of the United States shall submit to the appropriate con23 gressional committees a report assessing the activities of the 

24 Fund in achieving the stated goals of promoting private 

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1 fying those institutional or regulatory constraints that in2 hibit a more effective application of Fund resources. 

3 SEC. 206. OPERATION PROVISIONS. 

4 (a) APPLICABLE PROVISIONS.—Subsections (d)(5), (g), 

5 (h), (i), (k), (l), (m), (n), (o), and (p) of section 201 of 

6 the Support for East European Democracy (SEED) Act of 

7 1989 (22 U.S.C. 5421) shall apply with respect to the Tuni8 sian-American Enterprise Fund in the same manner as 

9 such provisions apply to Enterprise Funds designated pur10 suant to subsection (d) of such section. 

11 (b) REINVESTMENT.—Returns on investments of the 

12 Tunisian-American Enterprise Fund and other payments 

13 to the Fund may be reinvested in projects carried out by 

14 the Fund without further appropriation by Congress. 

15 SEC. 207. BEST PRACTICES AND PROCEDURES. 

16 To the maximum extent practicable, the Board of Di17 rectors of the Tunisian-American Enterprise Fund should 

18 adopt the best practices and procedures used by Enterprise 

19 Funds, including those for which funding has been made 

20 available pursuant to section 201 of the Support for East 

21 European Democracy (SEED) Act of 1989 (22 U.S.C. 

22 5421). 

23 SEC. 208. EXPERIENCE OF OTHER ENTERPRISE FUNDS. 

24 In implementing this title, the President shall ensure 

25 that the Articles of Incorporation of the Tunisian-American 


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1 Enterprise Fund (including provisions specifying the re2 sponsibilities of the Board of Directors of the Fund), the 

3 terms of United States Government grant agreements with 

4 the Fund, and United States Government oversight of the 

5 Fund are, to the maximum extent practicable, consistent 

6 with the Articles of Incorporation of, the terms of grant 

7 agreements with, and the oversight of the Enterprise Funds 

8 established pursuant to section 201 of the Support for East 

9 European Democracy (SEED) Act of 1989 (22 U.S.C. 

10 5421) and comparable provisions of law. 


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Calendar No. 79 

112TH CONGRESS 

1ST SESSION S. 618 

[Report No. 112–25] 

A BILL 

To promote the strengthening of the private sector 

in Egypt and Tunisia. 

JUNE 22, 2011 

Reported with an amendment 


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