H. R. 302—310 
(3) PURPOSES
FOR
WHICH
SUPPORT
MAY
BE
PROVIDED.— 
The Corporation, subject to the approval of the Board, may 
designate private, nonprofit organizations as eligible to receive 
support under this title for the following purposes: 
(A) To promote development of economic freedom and 
private sectors, including small- and medium-sized enter-
prises and joint ventures with the United States and host 
country participants. 
(B) To facilitate access to credit to small- and medium- 
sized enterprises with sound business plans in countries 
where there is limited means of accessing credit on market 
terms. 
(C) To promote policies and practices conducive to eco-
nomic freedom and private sector development. 
(D) To attract foreign direct investment capital to fur-
ther promote private sector development and economic 
freedom. 
(E) To complement the work of the United States 
Agency for International Development and other donors 
to improve the overall business-enabling environment, 
financing the creation and expansion of the private busi-
ness sector. 
(F) To make financially sustainable investments 
designed to generate measurable social benefits and build 
technical capacity in addition to financial returns. 
(4) OPERATION OF FUNDS.— 
(A) EXPENDITURES.—Funds made available to an enter-
prise fund shall be expended at the minimum rate nec-
essary to make timely payments for projects and activities 
carried out under this subsection. 
(B) ADMINISTRATIVE EXPENSES.—Not more than 3 per-
cent per annum of the funds made available to an enter-
prise fund may be obligated or expended for the administra-
tive expenses of the enterprise fund. 
(5) BOARD OF DIRECTORS.—Each enterprise fund established 
under this subsection should be governed by a Board of Direc-
tors comprised of private citizens of the United States or the 
host country, who— 
(A) shall be appointed by the President after consulta-
tion with the chairmen and ranking members of the appro-
priate congressional committees; and 
(B) have pursued careers in international business and 
have demonstrated expertise in international and emerging 
market investment activities. 
(6) MAJORITY MEMBER REQUIREMENT.—The majority of the 
members of the Board of Directors shall be United States 
citizens who shall have relevant experience relating to the 
purposes described in paragraph (3). 
(7) REPORTS.—Not later than one year after the date of 
the establishment of an enterprise fund under this subsection, 
and annually thereafter until the enterprise fund terminates 
in accordance with paragraph (10), the Board of Directors of 
the enterprise fund shall— 
(A) submit to the appropriate congressional committees 
a report—
H. R. 302—311 
(i) detailing the administrative expenses of the 
enterprise fund during the year preceding the submis-
sion of the report; 
(ii) describing the operations, activities, engage-
ment with civil society and relevant local private sector 
entities, development objectives and outcomes, finan-
cial condition, and accomplishments of the enterprise 
fund during that year; 
(iii) describing the results of any audit conducted 
under paragraph (8); and 
(iv) describing how audits conducted under para-
graph (8) are informing the operations and activities 
of the enterprise fund; and 
(B) publish, on a publicly available internet website 
of the enterprise fund, each report required by subpara-
graph (A). 
(8) OVERSIGHT.— 
(A) INSPECTOR GENERAL PERFORMANCE AUDITS.— 
(i) IN GENERAL.—The Inspector General of the Cor-
poration shall conduct periodic audits of the activities 
of each enterprise fund established under this sub-
section. 
(ii) CONSIDERATION.—In conducting an audit under 
clause (i), the Inspector General shall assess whether 
the activities of the enterprise fund— 
(I) support the purposes described in para-
graph (3); 
(II) 
result 
in 
profitable 
private 
sector 
investing; and 
(III) generate measurable social benefits. 
(B) RECORDKEEPING REQUIREMENTS.—The Corporation 
shall ensure that each enterprise fund receiving support 
under this subsection— 
(i) keeps separate accounts with respect to such 
support; and 
(ii) maintains such records as may be reasonably 
necessary to facilitate effective audits under this para-
graph. 
(9) RETURN OF FUNDS TO TREASURY.—Any funds resulting 
from any liquidation, dissolution, or winding up of an enterprise 
fund, in whole or in part, shall be returned to the Treasury 
of the United States. 
(10) TERMINATION.—The authority of an enterprise fund 
to provide support under this subsection shall terminate on 
the earlier of— 
(A) the date that is 10 years after the date of the 
first expenditure of amounts from the enterprise fund; or 
(B) the date on which the enterprise fund is liquidated. 
(h) SUPERVISION
OF SUPPORT.—Support provided under this 
title shall be subject to section 622(c) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2382(c)). 
(i) SMALL BUSINESS DEVELOPMENT.— 
(1) IN
GENERAL.—The Corporation shall undertake, in 
cooperation with appropriate departments, agencies, and 
instrumentalities of the United States as well as private entities 
and others, to broaden the participation of United States small 
businesses and cooperatives and other small United States
H. R. 302—312 
investors in the development of small private enterprise in 
less developed friendly countries or areas. 
(2) OUTREACH
TO
MINORITY-OWNED
AND
WOMEN-OWNED 
BUSINESSES.— 
(A) IN GENERAL.—The Corporation shall collect data 
on the involvement of minority- and women-owned 
businesses in projects supported by the Corporation, 
including— 
(i) the amount of insurance and financing provided 
by the Corporation to such businesses in connection 
with projects supported by the Corporation; and 
(ii) to the extent such information is available, 
the involvement of such businesses in procurement 
activities conducted or supported by the Corporation. 
(B) INCLUSION IN ANNUAL REPORT.—The Corporation 
shall include, in its annual report submitted to Congress 
under section 1443, the aggregate data collected under 
this paragraph, in such form as to quantify the effectiveness 
of the Corporation’s outreach activities to minority- and 
women-owned businesses. 
SEC. 1422. TERMS AND CONDITIONS. 
(a) IN GENERAL.—Except as provided in subsection (b), support 
provided by the Corporation under this title shall be on such terms 
and conditions as the Corporation may prescribe. 
(b) REQUIREMENTS.—The following requirements apply to sup-
port provided by the Corporation under this title: 
(1) The Corporation shall provide support using authorities 
under this title only if it is necessary— 
(A) to alleviate a credit market imperfection; or 
(B) to achieve specified development or foreign policy 
objectives of the United States Government by providing 
support in the most efficient way to meet those objectives 
on a case-by-case basis. 
(2) The final maturity of a loan made or guaranteed by 
the Corporation shall not exceed the lesser of— 
(A) 25 years; or 
(B) debt servicing capabilities of the project to be 
financed by the loan (as determined by the Corporation). 
(3) The Corporation shall, with respect to providing any 
loan guaranty to a project, require the parties to the project 
to bear the risk of loss in an amount equal to at least 20 
percent of the guaranteed support by the Corporation in the 
project. 
(4) The Corporation may not make or guarantee a loan 
unless the Corporation determines that the borrower or lender 
is responsible and that adequate provision is made for servicing 
the loan on reasonable terms and protecting the financial 
interest of the United States. 
(5) The interest rate for direct loans and interest supple-
ments on guaranteed loans shall be set by reference to a bench-
mark interest rate (yield) on marketable Treasury securities 
or other widely recognized or appropriate benchmarks with 
a similar maturity to the loans being made or guaranteed, 
as determined in consultation with the Director of the Office 
of Management and Budget and the Secretary of the Treasury.
H. R. 302—313 
The Corporation shall establish appropriate minimum interest 
rates for loans, guaranties, and other instruments as necessary. 
(6) The minimum interest rate for new loans as established 
by the Corporation shall be adjusted periodically to take account 
of changes in the interest rate of the benchmark financial 
instrument. 
(7)(A) The Corporation shall set fees or premiums for sup-
port provided under this title at levels that minimize the cost 
to the Government while supporting achievement of the objec-
tives of support. 
(B) The Corporation shall review fees for loan guaranties 
periodically to ensure that the fees assessed on new loan 
guaranties are at a level sufficient to cover the Corporation’s 
most recent estimates of its costs. 
(8) Any loan guaranty provided by the Corporation shall 
be conclusive evidence that— 
(A) the guaranty has been properly obtained; 
(B) the loan qualified for the guaranty; and 
(C) but for fraud or material misrepresentation by 
the holder of the guaranty, the guaranty is presumed to 
be valid, legal, and enforceable. 
(9) The Corporation shall prescribe explicit standards for 
use in periodically assessing the credit risk of new and existing 
direct loans or guaranteed loans. 
(10) The Corporation may not make loans or loan guaran-
ties except to the extent that budget authority to cover the 
costs of the loans or guaranties is provided in advance in 
an appropriations Act, as required by section 504 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661c). 
(11) The Corporation shall rely upon specific standards 
to assess the developmental and strategic value of projects 
for which it provides support and should only provide the 
minimum level of support necessary in order to support such 
projects. 
(12) Any loan or loan guaranty made by the Corporation 
should be provided on a senior basis or pari passu with other 
senior debt unless there is a substantive policy rationale to 
provide such support otherwise. 
SEC. 1423. PAYMENT OF LOSSES. 
(a) PAYMENTS FOR DEFAULTS ON GUARANTEED LOANS.— 
(1) IN GENERAL.—If the Corporation determines that the 
holder of a loan guaranteed by the Corporation suffers a loss 
as a result of a default by a borrower on the loan, the Corpora-
tion shall pay to the holder the percent of the loss, as specified 
in the guaranty contract, after the holder of the loan has 
made such further collection efforts and instituted such enforce-
ment proceedings as the Corporation may require. 
(2) SUBROGATION.—Upon making a payment described in 
paragraph (1), the Corporation shall ensure the Corporation 
will be subrogated to all the rights of the recipient of the 
payment. 
(3) RECOVERY
EFFORTS.—The Corporation shall pursue 
recovery from the borrower of the amount of any payment 
made under paragraph (1) with respect to the loan. 
(b) LIMITATION ON PAYMENTS.—