[Congressional Record Volume 142, Number 113 (Monday, July 29, 1996)]
[House]
[Pages H8624-H8626]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
MICROENTERPRISE ACT
Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3846) to amend the Foreign Assistance Act of 1961 to
authorize the provision of assistance for microenterprises, and for
other purposes.
The Clerk read as follows:
[[Page H8625]]
H.R. 3846
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Microenterprise Act''.
SEC. 2. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.
Section 108 of the Foreign Assistance Act of 1961 (22
U.S.C. 2151f) is amended to read as follows:
``SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.
``(a) Findings and Policy.--The Congress finds and declares
that--
``(1) the development of micro- and small enterprise,
including cooperatives, is a vital factor in the stable
growth of developing countries and in the development and
stability of a free, open, and equitable international
economic system;
``(2) it is, therefore, in the best interests of the United
States to assist the development of the private sector in
developing countries and to engage the United States private
sector in that process;
``(3) the support of private enterprise can be served by
programs providing credit, training, and technical assistance
for the benefit of micro- and small enterprises; and
``(4) programs that provide credit, training, and technical
assistance to private institutions can serve as a valuable
complement to grant assistance provided for the purpose of
benefiting micro- and small private enterprise.
``(b) Program.--To carry out the policy set forth in
subsection (a), the President is authorized to provide
assistance to increase the availability of credit to micro-
and small enterprises lacking full access to credit,
including through--
``(1) loans and guarantees to credit institutions for the
purpose of expanding the availability of credit to micro- and
small enterprises;
``(2) training programs for lenders in order to enable them
to better meet the credit needs of micro- and small
entrepreneurs; and
``(3) training programs for micro- and small entrepreneurs
in order to enable them to make better use of credit and to
better manage their enterprises.''.
SEC. 3. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.
Chapter 1 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.) is amended by adding at the end the
following new section:
``SEC. 129. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.
``(a) Authorization.--(1) In carrying out this part, the
Administrator of the United States Agency for International
Development is authorized to provide grant assistance for
programs of credit and other assistance for
microenterprises in developing countries.
``(2) Assistance authorized under paragraph (1) shall be
provided through organizations that have a capacity to
develop and implement microenterprise programs, including
particularly--
``(A) United States and indigenous private and voluntary
organizations;
``(B) United States and indigenous credit unions and
cooperative organizations; or
``(C) other indigenous governmental and nongovernmental
organizations.
``(3) Approximately one-half of the credit assistance
authorized under paragraph (1) shall be used for poverty
lending programs, including the poverty lending portion of
mixed programs. Such programs--
``(A) shall meet the needs of the very poor members of
society, particularly poor women; and
``(B) should provide loans of $300 or less in 1995 United
States dollars to such poor members of society.
``(4) The Administrator should continue support for
mechanisms that--
``(A) provide technical support for field missions;
``(B) strengthen the institutional development of the
intermediary organizations described in paragraph (2); and
``(C) share information relating to the provision of
assistance authorized under paragraph (1) between such field
missions and intermediary organizations.
``(b) Monitoring System.--In order to maximize the
sustainable development impact of the assistance authorized
under subsection (a)(1), the Administrator should establish a
monitoring system that--
``(1) establishes performance goals for such assistance and
expresses such goals in an objective and quantifiable form,
to the extent feasible;
``(2) establishes performance indicators to be used in
measuring or assessing the achievement of the goals and
objectives of such assistance; and
``(3) provides a basis for recommendations for adjustments
to such assistance to enhance the sustainable development
impact of such assistance, particularly the impact of such
assistance on the very poor, particularly poor women.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nebraska [Mr. Bereuter] and the gentleman from New York [Mr. Engel]
each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska [Mr. Bereuter].
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, we have long recognized the value of the
microenterprise loans. As chairman of the Subcommittee on Asia and the
Pacific, I noted the success of the Grameen Bank in Bangladesh. Grameen
has loaned over $1 billion to over 2 million people with a repayment
rate of 98 percent. These clearly fit the model of the microenterprise
loan. I have seen it work very effectively in places like Peru, as
well.
This bill provides two new authorities in the Foreign Assistance Act
to provide microgrants and microloans. I am assured that the bill has
the support of the minority and the administration. I urge its
adoption.
Mr. Speaker, I reserve the balance of my time.
Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of this bill. I want to commend
the work that Chairman Gilman and Mr. Gejdenson have done in putting
together a bill that helps microenterprise development and a bill which
we can all support.
Microenterprise development has proven to be an effective way to help
the world's poor work their way to a better standard of living for
themselves and for their country.
This bill establishes special authorities under the Foreign
Assistance Act for microenterprise grants and loans. It signals the
importance of focusing on loans to the poorest of the poor and
providing such assistance through private voluntary and nongovernmental
organizations. Again, it is the perfect example of the private sector
working together with government in a partnership that works and helps
people.
This bill should strengthen one part of the U.S. foreign assistance
program. Again, I commend Chairman Gilman and Mr. Gejdenson for their
efforts. This bill adopts a balanced and thoughtful approach. I
strongly urge its adoption.
Mr. GILMAN. Mr. Speaker, this is a proud day for me. I began my work
in support of microenterprise development almost 20 years ago as a
member of the President's Commission on Hunger. I introduced the first
microenterprise bill in 1986 and supported these programs as strongly
as possible during my service here in Congress.
The Microenterprise Act, H.R. 3846, represents a historic alliance
between the administration, microenterprise groups, and the Congress
behind the cause of microenterprise development to help the poorest of
the poor work their way out of poverty.
We have all heard of Prof. Muhammad Yunus and his successful Grameen
Bank in Bangladesh. Today, the Grameen Bank is one of the largest banks
in Bangladesh. It has served over 2 million borrowers and lent over $1
billion. Most of the loans are small--under $300--and 94 percent of the
borrowers are women. The bank represents one of he most successful
foreign assistance programs yet designed to eliminate poverty among the
poorest of the poor.
Most importantly, Grameen's borrowers have repaid their loans at a 98
percent repayment rate.
The microenterprise movement is not just about Grameen. In Bolivia,
BancoSol grew from nothing to serve over 40 percent of all banking
clients in Bolivia. BancoSol and its microenterprise lending program is
so big and successful that it has graduated part of this program from
assistance and now borrows funds directly from the New York market to
continue its service to Bolivia's poor. Other microenterprise
institutions dot the planet, including hundreds here in the United
States and especially in my home State of New York.
This bill breaks new ground. It provides two new tailor-made
authorities under the Foreign Assistance Act for microenterprise grants
and microenterprise loans. The bill recommends the administration to
focus on loans to the poorest of the poor, mainly through private,
voluntary organizations, nongovernmental organizations and other worthy
institutions.
The administration supports this bill along with Mr. Hamilton, Mr.
Gejdenson, Mr. Houghton, and 24 other cosponsors. I am grateful to them
and I want to give special thanks to key members of the Microenterprise
Coalition, Sam Harris of RESULTS, Maria Otero of ACCION International,
and Lawrence Yanovitch of FINCA along with Brian Atwood and Robert
Boyer of AID who helped bridge the gap, allowing us in the Congress to
come together in support of microenterprise.
I am informed that this bill has the support of Senator Helms and
Senator Sarbanes. I think this bill is too important to delay in the
[[Page H8626]]
other body. As the debate on the bill and the report that accompany the
bill shows: One, that we want AID to make at least half of its micro
credit in amounts below $300, and two, that we want AID to make most
initial loans at the $150 level to reach the poorest of the poor.
Following the hoped for enactment of this bill, we can reexamine the
situation next year to assess how successfully AID is reaching the poor
with micro credits.
I commend this bill to the House and urge its adoption.
Mr. ENGEL. Mr. Speaker, I yield back the balance of my time.
Mr. BEREUTER. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nebraska [Mr. Bereuter] that the House suspend the rules
and pass the bill, H.R. 3846.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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