§ 2212. Development credits for micro, small, and medium-sized enterprises

§ 2212. Development credits for micro, small, and medium-sized enterprises

(a) Findings and policy Congress finds and declares that—

(1) the development of micro, small, and medium-sized enterprises 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; and

(2) it is, therefore, in the best interests of the United States to assist the access to financial services and the development of micro, small, and medium-sized enterprises in developing countries and to engage the United States private sector in that process.

(b) Program To carry out the policy set forth in subsection (a), the President is authorized to provide assistance to increase the availability of financial services to micro, small, and medium-sized enterprises and households lacking full access to credit and other financial services, including through—

(1) loans and guarantees to financial intermediaries for the purpose of expanding the availability of savings and credit to poor and low-income households;

(2) training programs for financial intermediaries in order to enable them to better meet the financial 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 The Administrator of the Agency shall establish criteria for determining which financial intermediaries described in subsection (b)(1) are eligible to carry out activities, with respect to micro, small, and medium-sized enterprises and households, assisted under this section. Such criteria may include the following:

(1) The extent to which the recipients of financial services from the entity do not have access to the local formal financial sector.

(2) The extent to which the recipients of financial services from the entity are among the poorest people in the country.

(3) The extent to which the entity is oriented toward working directly with poor women.

(4) The extent to which the entity recovers its cost of lending.

(5) The extent to which the entity implements a plan to become financially sustainable.

(d) Additional requirement Assistance provided under this section may only be used to support programs for micro, small, and medium-sized enterprises and households and may not be used to support programs not directly related to the purposes described in subsection (b).

(e) Procurement provision Assistance may be provided under this section without regard to section 2354(a) of this title.

(f) Availability of funds

(1) In general Of the amounts authorized to be available to carry out subchapter I of this chapter, there are authorized to be available such sums as may be necessary for each of the fiscal years 2005 through 2009 to carry out this section.

(2) Coverage of subsidy costs Amounts authorized to be available under paragraph (1) shall be made available to cover the subsidy cost, as defined in section 661a(5) of title 2, for activities under this section.

(Pub. L. 87–195, pt. I, § 256, formerly § 108, as added Pub. L. 98–151, § 101(b)(2), Nov. 14, 1983, 97 Stat. 972; amended Pub. L. 99–83, title III, § 308, Aug. 8, 1985, 99 Stat. 215; Pub. L. 100–418, title II, § 2211, Aug. 23, 1988, 102 Stat. 1335; Pub. L. 106–309, title I, § 106, Oct. 17, 2000, 114 Stat. 1085; Pub. L. 108–31, § 2, June 17, 2003, 117 Stat. 775; renumbered § 256 and amended Pub. L. 108–484, § 4(a), (b), (c)(3), Dec. 23, 2004, 118 Stat. 3926, 3927; Pub. L. 115–428, § 4(f), Jan. 9, 2019, 132 Stat. 5514.)

Editorial Notes

Codification

Section was formerly classified to section 2151f of this title.

Section 256, formerly 108, of Pub. L. 87–195 is based on section 407 of title IV of H.R. 2992, Ninety-eighth Congress, as reported May 17, 1983, and enacted into law by Pub. L. 98–151.

Prior Provisions

A prior section 2212, Pub. L. 87–195, pt. I, § 252, as added Pub. L. 87–565, pt. I, § 106, Aug. 1, 1962, 76 Stat. 258; amended Pub. L. 88–205, pt. I, § 106(b), Dec. 16, 1963, 77 Stat. 383; Pub. L. 88–633, pt. I, § 105, Oct. 7, 1964, 78 Stat. 1010; Pub. L. 89–171, pt. I, § 105, Sept. 6, 1965, 79 Stat. 655; Pub. L. 89–583, pt. I, § 105(b), Sept. 19, 1966, 80 Stat. 799; Pub. L. 90–137, pt. I, § 106(b), Nov. 14, 1967, 81 Stat. 451; Pub. L. 90–554, pt. I, § 105, Oct. 8, 1968, 82 Stat. 961; Pub. L. 91–175, pt. I, § 106, Dec. 30, 1969, 83 Stat. 818; Pub. L. 92–226, pt. I, § 105, Feb. 7, 1972, 86 Stat. 23; Pub. L. 93–189, § 7, Dec. 17, 1973, 87 Stat. 718, related to authorization of appropriations for Alliance for Progress, prior to repeal by Pub. L. 95–424, title I, § 102(g)(1)(A), title VI, § 605, Oct. 6, 1978, 92 Stat. 942, 961, effective Oct. 1, 1978.

Amendments

2019—Pub. L. 115–428, § 4(f)(1), substituted “Development credits for micro, small, and medium-sized enterprises” for “Microenterprise development credits” in section catchline.

Subsec. (a)(1). Pub. L. 115–428, § 4(f)(2)(A), substituted “micro, small, and medium-sized enterprises” for “micro- and small enterprises”.

Subsec. (a)(2). Pub. L. 115–428, § 4(f)(2)(B), substituted “micro, small, and medium-sized enterprises” for “microenterprises”.

Subsec. (b). Pub. L. 115–428, § 4(f)(3)(A), substituted “micro, small, and medium-sized enterprises and households lacking full access to credit and other financial services” for “microenterprise households lacking full access to credit” in introductory provisions.

Subsec. (b)(1), (2). Pub. L. 115–428, § 4(f)(3)(B), substituted “financial intermediaries” for “microfinance institutions”.

Subsec. (c). Pub. L. 115–428, § 4(f)(4), (5), in introductory provisions, substituted “financial intermediaries” for “microfinance institutions” and “micro, small, and medium-sized enterprises and households” for “microenterprise households”.

Subsec. (d). Pub. L. 115–428, § 4(f)(5), substituted “micro, small, and medium-sized enterprises and households” for “microenterprise households”.

2004—Subsec. (c). Pub. L. 108–484, § 4(c)(3)(A), substituted “Administrator of the Agency” for “Administrator of the agency primarily responsible for administering subchapter I of this chapter” in introductory provisions.

Subsec. (f)(1). Pub. L. 108–484, § 4(c)(3)(B), substituted “subchapter I of this chapter” for “section 2152a of this title” and “such sums as may be necessary for each of the fiscal years 2005 through 2009” for “$1,500,000 for each of fiscal years 2001 through 2004”.

2003—Pub. L. 108–31, § 2(f), substituted “Microenterprise development credits” for “Micro- and small enterprise development credits” in section catchline.

Subsec. (a)(2). Pub. L. 108–31, § 2(a), substituted “the access to financial services and the development of microenterprises” for “the development of the enterprises of the poor”.

Subsec. (b). Pub. L. 108–31, § 2(b), amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “To carry out the policy set forth in subsection (a) of this section, 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 microentrepreneurs; and

“(3) training programs for microentrepreneurs in order to enable them to make better use of credit and to better manage their enterprises.”

Subsec. (c). Pub. L. 108–31, § 2(c)(1), substituted “microfinance institutions” for “credit institutions” and “microenterprise households” for “micro- and small enterprises” in introductory provisions.

Subsec. (c)(1), (2). Pub. L. 108–31, § 2(c)(2), substituted “financial services” for “credit”.

Subsec. (d). Pub. L. 108–31, § 2(d), substituted “programs for microenterprise households” for “micro- and small enterprise programs”.

Subsec. (f)(1). Pub. L. 108–31, § 2(e), substituted “for each of fiscal years 2001 through 2004” for “for each of fiscal years 2001 and 2002”.

2000—Pub. L. 106–309 amended section catchline and text generally, substituting provisions promoting micro- and small enterprise development credits for provisions relating to the establishment, funding and uses of a private sector revolving fund to aid developing countries.

1988—Subsec. (i). Pub. L. 100–418 added subsec. (i).

1985—Subsec. (b). Pub. L. 99–83 substituted “each of the fiscal years 1986 and 1987, up to $18,000,000” for “fiscal year 1984, up to $20,000,000”.

Statutory Notes and Related Subsidiaries

References to Subchapter I Deemed To Include Certain Parts of Subchapter II

References to subchapter I of this chapter are deemed to include parts IV (§ 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226 set out as a note under section 2346 of this title, and sections 2348c and 2349aa–5 of this title.

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section 2151–1 of this title.

Report to Congress

Pub. L. 108–31, § 4, June 17, 2003, 117 Stat. 778, as amended by Pub. L. 108–484, § 8(b), Dec. 23, 2004, 118 Stat. 3931, provided that: “Not later than September 30, 2005, the Administrator of the United States Agency for International Development shall submit to Congress a report that documents the process of developing and applying poverty assessment procedures with its partners.”

Findings and Declarations of Policy of 2000 Amendment