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 ‘‘microenterprise 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 ensure that in the implementation of
this title at least 50 percent of all microenterprise
assistance under this title, and the amendments
made under this title, shall be targeted to 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.—The term ‘very poor’ means
individuals—
‘‘(A) living in the bottom 50 percent below
the poverty line established by the national gov-
ernment of the country in which those individ-
uals live; or
‘‘(B) living on the equivalent of less than
$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 amended by striking ‘‘the development of
the enterprises of the poor’’ and inserting ‘‘the access to
financial services and the development of microenter-
prises’’.
(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 as-
sistance to increase the availability of financial services to
microenterprise households lacking full access to credit,
including 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 fi-
nancial 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
enterprises to improve their quality of life.’’.
(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)—
(A) by striking ‘‘credit institutions’’ and
inserting ‘‘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
‘‘credit’’ each place it appears and inserting ‘‘finan-
cial 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:
‘‘SEC. 108. MICROENTERPRISE DEVELOPMENT CREDITS.’’.
SEC. 3. AMENDMENTS TO THE MICROENTERPRISE DEVEL-
OPMENT 
GRANT 
ASSISTANCE 
PROGRAM
UNDER THE FOREIGN ASSISTANCE ACT OF
1961.
(a) FINDINGS AND POLICY.—Section 131(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2152a(a)) is
amended to read as follows:
‘‘(a) FINDINGS AND POLICY.—Congress finds and de-
clares that—
‘‘(1) access to financial services and the devel-
opment of microenterprise are vital factors in the
stable growth of developing countries and in the de-
velopment of free, open, and equitable international
economic systems;
‘‘(2) it is therefore in the best interest of the
United States to facilitate access to financial serv-
ices and assist the development of microenterprise in
developing countries;
‘‘(3) access to financial services and the devel-
opment of microenterprises can be supported by pro-
grams providing credit, savings, training, technical
assistance, business development services, and other
financial and non-financial services; and
‘‘(4) given the relatively high percentage of pop-
ulations living in rural areas of developing countries,
and the combined high incidence of poverty in rural
areas and growing income inequality between rural
and 
urban 
markets, 
microenterprise 
programs
should target both rural and urban poor.’’.
(b) AUTHORIZATION.—Section 131(b) of such Act
(22 U.S.C. 2152a(b)) is amended—