I 
112TH CONGRESS 
1ST SESSION H. R. 2237 
To promote the strengthening of the private sector in Egypt and Tunisia. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2011 
Mr. SCHIFF introduced the following bill; which was referred to the Committee 
on Foreign Affairs 
A BILL 
To promote the strengthening of the private sector in Egypt 
and Tunisia. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED. 
In this Act, the term ‘‘appropriate congressional com-
mittees’’ means— 
(1) the Committee on Foreign Relations of the 
Senate; 
(2) the Committee on Appropriations of the 
Senate; 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(ii) the broader Middle East and 
North Africa; and 
(B) has been an intellectual, economic, and 
cultural center of the Arab world for many 
years. 
(3) On January 25, 2011, demonstrations 
began throughout Egypt in which thousands of pro-
testers peacefully called for— 
(A) a new government; 
(B) free and fair elections; 
(C) significant constitutional and political 
reforms; 
(D) greater economic opportunity; and 
(E) an end to government corruption. 
(4) The demonstrators’ perseverance in the face 
of violence and intimidation— 
(A) culminated in the February 11, 2011 
resignation of President Hosni Mubarak; and 
(B) inspired democracy activists through-
out the region and around the world. 
(5) The United States has a strong interest 
in— 
(A) an orderly and peaceful transition to 
democracy in Egypt; and 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(B) assisting the people of Egypt to form 
a representative and democratic political and 
economic system that respects universal values. 
(6) Egypt— 
(A) has a well-developed civil society and 
governing institutions; and 
(B) was well-served by— 
(i) the extraordinary determination 
shown by the people of Egypt in forcing 
President Mubarak to abdicate; and 
(ii) the restraint demonstrated by the 
Egyptian military. 
(7) In 2010— 
(A) the inflation rate in Egypt was ap-
proximately 11 percent; and 
(B) Egypt’s foreign debt was equal to 16 
percent of its $216,000,000,000 gross domestic 
product (GDP). 
(8) As a result of the dramatic events in Egypt 
in February 2011— 
(A) Egypt’s economy was brought to a 
near standstill and continues to experience lin-
gering effects; 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(B) 
widespread 
strikes 
slowed 
down 
Egypt’s manufacturing output and banks closed 
down for intermittent periods; and 
(C) the value of the Egyptian stock market 
fell by 16 percent in the 2 days before it was 
closed on January 30, 2011. 
(9) According to analyst estimates, as a result 
of recent events in Egypt— 
(A) forecasted growth for Egypt’s GDP 
has dropped from 6 percent to between 3.1 and 
3.5 percent; 
(B) the amount of workers’ remittances 
coming into Egypt will likely decline; 
(C) the amount of regional securities pur-
chased by foreign investors will likely decrease, 
which will require fiscal deficits to be financed 
by domestic banks and reduce the availability of 
credit for private sector borrowers; 
(D) heightened political uncertainty will 
likely lead to a downturn in tourism, which ac-
counts for 8.2 percent of Egypt’s GDP and 7 
percent of Egypt’s direct employment; and 
(E) foreign direct investment (FDI) in 
Egypt is predicted to decrease. 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(10) The most recent official estimates of the 
unemployment rate in Egypt is 9.2 percent. Unoffi-
cial estimates of the current unemployment rate in 
Egypt range between 15 and 20 percent. The unem-
ployment rate for Egyptian youth is estimated at 
24.8 percent. Egyptian women, who are more af-
fected by spikes in unemployment, face an unem-
ployment rate of nearly 25 percent compared to the 
6.7 percent unemployment rate for Egyptian men. 
(11) An estimated 61 percent of the population 
of Egypt is younger than 30 years of age. 
(12) Private sector employment in Egypt in-
creased from 11,000,000 to 15,100,000 between 
1999 and 2007. 
(13) According to the International Finance 
Corporation’s 2009 ‘‘SME Banking Knowledge 
Guide’’— 
(A) the small and medium enterprise 
(SME) market in Egypt was estimated at 
160,000; 
(B) of these firms, about 98 percent em-
ployed fewer than 50 people; 
(C) Egypt had an estimated 2,400,000 
microenterprises; and 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(D) 68 percent of the SMEs in Egypt have 
bank accounts, but only 12 percent of those 
with bank accounts had taken out loans. 
(14) A challenge for SMEs is that they are not 
always considered a significant customer base for 
banks and services don’t meet the unique needs of 
this market segment. 
(15) According to the Government of Egypt’s 
Small and Medium Enterprise Development Unit, 
SMEs constitute nearly 75 percent of private sector 
employment. 
(16) According to the World Bank report enti-
tled ‘‘Access to Finance and Economic Growth in 
Egypt’’— 
(A) even before the recent political events 
in Egypt, private-sector credit to GDP in Egypt 
was modest compared to other developing 
economies; 
(B) private credit as a share of total credit 
has been declining; 
(C) the distribution of bank financing is 
uneven, with most loans going to large and 
well-established enterprises; and 
(D) as a consequence, family-owned firms 
and SMEs, which represent the majority of 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
firms in Egypt, rely heavily on the informal 
market. 
(17) To help foster and support the fledgling 
private sector after the fall of the Berlin Wall, Con-
gress, through enactment of the Support for East 
European Democracy (SEED) Act of 1989 (22 
U.S.C. 5401 et seq.) and the FREEDOM Support 
Act (22 U.S.C. 5801 et seq.), authorized nearly 
$1,200,000,000 for the United States Agency for 
International Development (USAID) to establish 10 
new investment funds (collectively known as the 
‘‘Enterprise Funds’’) throughout Central and East-
ern Europe and the former Soviet Union. 
(18) The Enterprise Funds— 
(A) channeled funding into more than 500 
enterprises in 19 countries; 
(B) 
leveraged 
an 
additional 
$5,000,000,000 in private investment capital 
from outside the United States Government; 
(C) provided substantial development cap-
ital where supply was limited; 
(D) created or sustained more than 
260,000 jobs through investment and develop-
ment activities; 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(E) funded $74,000,000 in technical as-
sistance to strengthen the private sector; and 
(F) are expected to recoup 137 percent of 
the original USAID funding. 
(19) Enterprise funds established in partner-
ship with United States partners, such as Poland, 
Hungary, Albania, Russia, and other European 
countries, have proven beneficial to the economies of 
such countries. 
(20) Creating a similar fund in close partner-
ship with the people of Egypt would help sustain 
and expand reform efforts in Egypt and empower 
Egyptian entrepreneurs with the resources required 
to create urgently needed employment opportunities. 
(21) Establishing an enterprise fund for Egypt 
would— 
(A) help reinforce financial institutions 
within the country; 
(B) provide debt and equity investment for 
commercially viable SMEs; and 
(C) make the investment environment 
more attractive to domestic and international 
investors. 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
SEC. 103. PURPOSES OF EGYPTIAN-AMERICAN ENTERPRISE 
FUND. 
The purposes of the Egyptian-American Enterprise 
Fund are— 
(1) to promote the private sector in Egypt, 
while considering the development impact of invest-
ments and profitability of those investments, par-
ticularly in small- and medium-sized enterprises, and 
joint ventures with participants from the United 
States and Egypt; 
(2) to promote policies and practices conducive 
to strengthening the private sector in Egypt through 
measures including loans, microloans, equity invest-
ments, insurance, guarantees, grants, feasibility 
studies, technical assistance, training for businesses 
receiving investment capital, and other measures; 
(3) to promote good corporate governance and 
transparency in Egypt, foster competition, catalyze 
productivity improvements in existing businesses, 
and strengthen local capital markets; and 
(4) to promote security through job creation in 
the private sector in Egypt and to further the cre-
ation of a middle class in Egypt. 
SEC. 104. EGYPTIAN-AMERICAN ENTERPRISE FUND. 
(a) ESTABLISHMENT.—The President is authorized 
to establish or designate a private, nonprofit organization 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(to be known as the ‘‘Egyptian-American Enterprise 
Fund’’) to receive funds and support made available under 
this title after determining that such organization has 
been established for the purposes specified in section 103. 
The President should make such designation only after 
consultation with the leadership of each House of Con-
gress. 
(b) BOARD OF DIRECTORS.— 
(1) APPOINTMENT.—The Egyptian-American 
Enterprise Fund shall be governed by a Board of 
Directors, which shall be comprised of 6 private citi-
zens of the United States and 3 private citizens of 
Egypt, appointed by the President of the United 
States in consultation with the Government of 
Egypt. 
(2) QUALIFICATIONS.—Members of the Board 
of Directors shall be selected from among people 
who have had successful business careers and dem-
onstrated experience and expertise in international 
and particularly emerging markets investment activi-
ties, such as private equity or venture capital invest-
ment, banking, finance, strategic business con-
sulting, or entrepreneurial business creation, and 
backgrounds in priority business sectors of the 
Fund. 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(3) UNITED STATES GOVERNMENT LIAISON TO 
THE
BOARD.—The President shall appoint the 
United States Ambassador to Egypt, or the Ambas-
sador’s designee, as a liaison to the Board. 
(4) 
NON-GOVERNMENT
LIAISONS
TO
THE 
BOARD.— 
(A) AUTHORITY TO APPOINT.—Upon the 
recommendation of the Board of Directors, the 
President may appoint up to 2 additional liai-
sons to the Board of Directors in addition to 
the members specified in paragraphs (1) and 
(3), of which not more than 1 may be a non- 
citizen of the United States. 
(B) NGO COMMUNITY.—One of the addi-
tional liaisons to the Board should be from the 
nongovernmental organization community, with 
significant prior experience in development and 
an understanding of development policy prior-
ities for Egypt. 
(C) TECHNICAL EXPERTISE.—One of the 
additional liaisons to the Board should have ex-
tensive demonstrated industry, sector, or tech-
nical experience and expertise in a priority in-
vestment sector for the Fund. 
(c) GRANTS.— 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(1) IN
GENERAL.—The President may use 
funds appropriated by any Act, in this fiscal year or 
prior fiscal years, making appropriations for the De-
partment of State, foreign operations, and related 
programs, including funds previously obligated, that 
are otherwise available for such purposes, notwith-
standing any other provision of law— 
(A) to carry out the purposes set forth in 
section 103 through the Egyptian-American 
Enterprise Fund; and 
(B) to pay for the administrative expenses 
of the Egyptian-American Enterprise Fund, 
which should not exceed 5 percent of the 
amounts made available for the Fund. 
(2) ELIGIBLE
PROGRAMS
AND
PROJECTS.— 
Grants awarded under this section may only be used 
for programs and projects that support the purposes 
set forth in section 103. 
(3) COMPLIANCE REQUIREMENTS.— 
(A) IN
GENERAL.—Grants may not be 
awarded to the Egyptian-American Enterprise 
Fund under this section unless the Fund agrees 
to comply with the requirements under this sec-
tion. 
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS
(B) 
GRANT
AGREEMENT.—The 
grant 
agreement between the United States Agency 
for International Development and the Egyp-
tian-American Enterprise Fund shall state that 
the Fund shall end its reinvestment cycle not 
later than December 31, 2021, unless the Sec-
retary of State, in consultation with the Admin-
istrator of the United States Agency for Inter-
national Development, and after consultation 
with the appropriate congressional committees, 
determines that the Fund should be extended. 
(C) PREVENTION OF MONEY LAUNDERING 
AND TERRORIST FINANCING.—The grant agree-
ment between the United States Agency for 
International Development and the Egyptian- 
American Enterprise Fund shall state that the 
Fund shall comply with procedures specified by 
the Secretary of State to ensure that grant 
funds are not provided by the Fund to or 
through any individual, private or government 
entity, or educational institution that advocates, 
plans, sponsors, engages in, or has engaged in, 
money laundering or terrorist activity or, with 
respect to a private entity or educational insti-
tution, that has as a principal officer of the en-
VerDate Mar 15 2010 
03:54 Jun 21, 2011
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2237.IH
H2237
smartinez on DSK6TPTVN1PROD with BILLS