IB
Union Calendar No. 268
107TH CONGRESS
2D SESSION
H. R. 4073
[Report No. 107–453]
To amend the Microenterprise for Self-Reliance Act of 2000 and the Foreign
Assistance Act of 1961 to increase assistance for the poorest people
in developing countries under microenterprise assistance programs under
those Acts, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 20, 2002
Mr. SMITH of New Jersey introduced the following bill; which was referred
to the Committee on International Relations
MAY 10, 2002
Additional sponsors: Mr. PLATTS, Mr. GRAHAM, Mrs. ROUKEMA, and Ms.
HART
MAY 10, 2002
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 20, 2002]
A BILL
To amend the Microenterprise for Self-Reliance Act of 2000
and the Foreign Assistance Act of 1961 to increase
assistance for the poorest people in developing countries
under microenterprise assistance programs under those
Acts, and for other purposes.
HR 4073 RH
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AMENDMENTS TO THE MICROENTERPRISE FOR
SELF-RELIANCE ACT OF 2000.
(a) PURPOSES.—Section 103 of the Microenterprise for
Self-Reliance Act of 2000 (Public Law 106–309) is
amended—
(1) in paragraph (3), by striking ‘‘microentre-
preneurs’’ and inserting ‘‘mircoenterprise house-
holds’’;
(2) in paragraph (4), by striking ‘‘and’’ at the
end;
(3) in paragraph (5)—
(A) by striking ‘‘microfinance policy’’ and
inserting ‘‘microenterprise policy’’;
(B) by striking ‘‘the poorest of the poor’’
and inserting ‘‘the very poor’’; and
(C) by striking the period at the end and
inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(6) to encourage the United States Agency for
International Development to develop, assess, and im-
plement effective outreach methods and tools to ensure
that all microenterprise assistance authorized under
this title, and the amendments made by this title, is
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used to assist the greatest absolute number of economi-
cally viable clients among the very poor, and that at
least 50 percent of all microenterprise assistance au-
thorized under this title, and the amendments made
under this title, is used in support of programs or
lines of service that target the very poor.’’.
(b) DEFINITIONS.—Section 104 of such Act is
amended—
(1) in paragraph (2), by striking ‘‘for micro-
entrepreneurs’’ and inserting ‘‘to microentrepreneurs
and their households’’; and
(2) by adding at the end the following:
‘‘(5) VERY POOR; POOREST PEOPLE IN DEVEL-
OPING COUNTRIES.—The terms ‘very poor’ and ‘poor-
est people in developing countries’ means those per-
sons living either in the bottom 50 percent below the
poverty line as established by the national government
of the country or on less than the equivalent of $1 per
day.’’.
SEC. 2. AMENDMENTS TO THE MICRO- AND SMALL ENTER-
PRISE 
DEVELOPMENT 
CREDITS 
PROGRAM
UNDER THE FOREIGN ASSISTANCE ACT OF
1961.
(a) FINDINGS AND POLICY.—Section 108(a)(2) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151f(a)(2)) is
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amended by striking ‘‘the development of the enterprises of
the poor’’ and inserting ‘‘the access to financial services and
the development of microenterprises’’.
(b) PROGRAM.—Section 108(b) of such Act (22 U.S.C.
2151f(b)) is amended to read as follows:
‘‘(b) PROGRAM.—To carry out the policy set forth in
subsection (a), the President is authorized to provide assist-
ance to increase the availability of financial services to
microenterprise households lacking full access to credit, in-
cluding through—
‘‘(1) loans and guarantees to microfinance insti-
tutions for the purpose of expanding the availability
of savings and credit to poor and low-income house-
holds;
‘‘(2) training programs for microfinance institu-
tions in order to enable them to better meet the finan-
cial services needs of their clients; and
‘‘(3) training programs for clients in order to
enable them to make better use of credit, increase their
financial literacy, and to better manage their enter-
prises.’’.
(c) ELIGIBILITY CRITERIA.—Section 108(c) of such
Act (22 U.S.C. 2151f(c)) is amended—
(1) in the first sentence of the matter preceding
paragraph (1)—
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(A) by striking ‘‘credit institutions’’ and in-
serting ‘‘microfinance institutions’’; and
(B) by striking ‘‘micro- and small enter-
prises’’ and inserting ‘‘microenterprise house-
holds’’; and
(2) in paragraphs (1) and (2), by striking ‘‘cred-
it’’ each place it appears and inserting ‘‘financial
services’’.
(d) ADDITIONAL REQUIREMENT.—Section 108(d) of
such Act (22 U.S.C. 2151f(d) is amended by striking
‘‘micro- and small enterprise programs’’ and inserting
‘‘programs for microenterprise households’’.
(e) AVAILABILITY OF FUNDS.—Section 108(f)(1) of
such Act (22 U.S.C. 2151f(f)(1)) is amended by striking
‘‘for each of fiscal years 2001 and 2002’’ and inserting ‘‘for
each of fiscal years 2001 through 2004’’.
(f) CONFORMING AMENDMENT.—Section 108 of such
Act (22 U.S.C. 2151f) is amended in the heading to read
as follows:
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‘‘(4) adopts the widespread use of proven and ef-
fective poverty assessment tools to successfully identify
the very poor and ensure that they receive needed
microenterprise credits, loans, and assistance.’’
(d) DEVELOPMENT
AND APPLICATION
OF POVERTY
MEASUREMENT METHODS.—Section 131 of such Act (22
U.S.C. 2152a) is amended—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(2) by inserting after subsection (c) the fol-
lowing:
‘‘(d) DEVELOPMENT AND CERTIFICATION OF POVERTY
MEASUREMENT METHODS; APPLICATION OF METHODS.—
‘‘(1) DEVELOPMENT AND CERTIFICATION.—
(A) The Administrator of the United States
Agency for International Development, in con-
sultation with appropriate microfinance institu-
tions, microenterprise institutions, and other ap-
propriate entities shall develop no fewer than
two low-cost methods for measuring the poverty
levels of the current or prospective clients of
microenterprise organizations of purposes of as-
sistance under this section. In developing such
methods, the Administrator shall give consider-
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ation to methods already in use by practitioner
institutions.
‘‘(B) The Administrator shall field-test the
methods developed under this paragraph, and as
part of the testing, institutions and programs
may use these methods on a voluntary basis to
demonstrate their ability to reach the very poor.
‘‘(C) Not later than October 1, 2004, the
Administrator shall, from among the low-cost
poverty measurement methods developed under
this paragraph, certify no fewer than two of such
methods as approved methods for measuring the
poverty levels of the current or prospective clients
of microenterprise organizations for purposes of
assistance under this section.
‘‘(2) APPLICATION.—Beginning on and after Oc-
tober 1, 2004, assistance furnished under this section
to a program or to a line of service within an institu-
tion shall qualify, in whole or in part, as targeted as-
sistance to the very poor if one or more of the meas-
urement methods approved under paragraph (1), or
one or more of the measurement methods approved in
accordance with paragraph (1) after October 1, 2004,
verifies that at least 50 percent of the incoming or
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prospective clients of the program or line of service
are initially among the very poor.’’.
(e) LEVEL OF ASSISTANCE.—Section 131(e) of such
Act, as redesignated by subsection (d), is amended by insert-
ing ‘‘and $175,000,000 for fiscal year 2003 and
$200,000,000 for fiscal year 2004’’ after ‘‘fiscal years 2001
and 2002’’.
(f) DEFINITIONS.—Section 131(f) of such Act, as redes-
ignated by subsection (d), is amended by adding at the end
the following:
‘‘(5) VERY POOR; POOREST PEOPLE IN DEVEL-
OPING COUNTRIES.—The terms ‘very poor’ and ‘poor-
est people in developing countries’ mean those persons
living either in the bottom 50 percent below the pov-
erty line as established by the national government of
the country or on less than the equivalent of $1 per
day.’’.
SEC. 4. REPORT TO CONGRESS.
Not later than July 1, 2004, the Administrator of the
United States Agency for International Development shall
submit to Congress a report that contains—
(1) a description of the interim poverty measure-
ment methods developed and implemented pursuant to
section 131(d)(1) of the Foreign Assistance Act of
1961, as added by section 3(d);
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(2) an analysis of the results of the application
of such interim poverty measurement methods to sus-
tainable poverty-focused programs under such section;
and
(3) a description of the proposed final poverty
measurement methods to be implemented beginning
on October 1, 2004, in accordance with section
131(d)(2) of such Act, as added by section 3(d).
Union Calendar No. 268
107TH CONGRESS
2D SESSION
H. R. 4073
[Report No. 107–453]
A BILL
To amend the Microenterprise for Self-Reliance Act
of 2000 and the Foreign Assistance Act of 1961
to increase assistance for the poorest people in
developing countries under microenterprise as-
sistance programs under those Acts, and for
other purposes.
MAY 10, 2002
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed