[Pages H1885-H1896]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

MICROENTERPRISE FOR SELF-RELIANCE ACT OF 1999

Mr. DIAZ-BALART. Mr. Speaker, by direction of the Committee on Rules,
I call up House Resolution 136 and ask for its immediate consideration.
The Clerk read the resolution, as follows:

H. Res. 136

Resolved, That at any time after the adoption of this
resolution the Speaker may, pursuant to clause 2(b) of rule
XVIII, declare the House resolved into the Committee of the
Whole House on the state of the Union for consideration of
the bill (H.R. 1143) to establish a program to provide
assistance for programs of credit and other financial
services for microenterprises in developing countries, and
for other purposes. The first reading of the bill shall be
dispensed with. Points of order against consideration of the
bill for failure to comply with clause 4(a) of rule XIII are
waived. General debate shall be confined to the bill and
shall not exceed one hour equally divided and controlled by
the chairman and ranking minority member of the Committee on
International Relations. After general debate the bill shall
be considered for amendment under the five-minute rule. Each
section of the bill shall be considered as read. During
consideration of the bill for amendment, the chairman of the
Committee of the Whole may accord priority in recognition on
the basis of whether the Member offering an amendment has
caused it to be printed in the portion of the Congressional
Record designated for that purpose in clause 8 of rule XVIII.
Amendments so printed shall be considered as read. The
chairman of the Committee of the Whole may: (1) postpone
until a time during further consideration in the Committee of
the Whole a request for a recorded vote on any amendment; and
(2) reduce to five minutes the minimum time for electronic
voting on any postponed question that follows another
electronic vote without intervening business, provided that
the minimum time for electronic voting on the first in any
series of questions shall be 15 minutes. At the conclusion of
consideration of the bill for amendment the Committee shall
rise and report the bill to the House with such amendments as
may have been adopted. The previous question shall be
considered as ordered on the bill and amendments thereto to
final passage without intervening motion except one motion to
recommit with or without instructions.

{time} 1145

The SPEAKER pro tempore (Mr. Ewing). The gentleman from Florida (Mr.
Diaz-Balart) is recognized for 1 hour.
Mr. DIAZ-BALART. Mr. Speaker, for purposes of debate only, I yield
the customary 30 minutes to the gentleman from Ohio (Mr. Hall), pending
which I yield myself such time as I may consume. During consideration
of this resolution, all time yielded is for the purpose of debate only.
House Resolution 136 is an open rule providing for the consideration
of H.R. 1143, the Microenterprise for Self-Reliance Act of 1999. The
purpose of the legislation is to establish a program to provide
assistance for programs of credit and other financial services for
microenterprises in developing countries. The rule provides for the
customary 1 hour of general debate, equally divided and controlled by
the chairman and ranking minority member of the Committee on
International Relations.
The rule waives clause 4(a) of rule XIII requiring a 3-day layover of
the committee report against consideration of the bill. In addition,
the rule provides that the bill shall be read by section. The rule
permits the Chair to grant priority in recognition to Members who have
preprinted their amendments and considers them as read.
Further, as has become standard practice in this Congress, the Chair
is allowed to postpone recorded votes and to reduce the time for
electronic voting on postponed votes, and finally the rule provides for
one motion to recommit with or without instructions.
Mr. Speaker, to keep with our record of fair rules for the 106th
Congress, I am pleased to report that this resolution is yet another
open rule that affords any Member the opportunity to offer any germane
amendments.
House Resolution 1143 is much needed legislation to enhance credit
opportunities for microenterprises in developing countries. These
businesses are so small, 10 or fewer employees, and the average loan is
so low; most are less than $300; that they are thought of as
microenterprises as opposed to small businesses. Microenterprises are
the economy of the very poorest segment of the economy in developing
countries, and estimates of their number range from one-third to
perhaps one-half of the world's businesses.
Microenterprises have been an area of interest for U.S. foreign
assistance for many years. In 1994, the USIA, USAID, formally launched
the microenterprise initiative in partnership with Congress to expand
funding for that department's microenterprise programs. The summit's
goal for that year was to target half of the microenterprise resources
to serve the poorest with loans under $300.
The ability to obtain credit is one of the most important factors in
starting or expanding a microenterprise. Often these loan amounts are
so low that a commercial bank would not find them profitable, or an
entrepreneur has very little in the way of collateral, so the bank
would consider them too risky. Yet most micro-loan institutions boast
repayment rates of 97 percent or better, putting them at least on a par
with major banks who lend to more affluent and traditional borrowers. I
believe that supporting microentrepreneurs is an excellent investment
in dramatically improving the quality of life of millions throughout
the world. Providing access to loans can help low-income entrepreneurs
expand their inventory or even hire additional employees and can truly
enhance a person's self-esteem by giving him or her a genuine
opportunity in life.
In addition, microfinance can serve as a powerful tool for building a
more inclusive financial sector which serves the broad majority of the
world's population, including the very poor and women, and thus
generates more social stability and prosperity. This legislation states
that the United States should coordinate among the G-7 nations to
bolster support for the microenterprise sector by leveraging our
investment with that of other donor nations.
H.R. 1143 appropriately makes microenterprise development an
important component of U.S. foreign economic policy and assistance by
expanding on the commitment of the USAID in its 1994 microenterprise
initiative. I believe that in improving the access of the poorest,
especially women, to much needed financial resources in developing
countries will lead to the development of free, open and equitable
international economic systems and contribute to the spread of freedom
and human dignity in the world.
I would like to commend the gentleman from New York (Mr. Gilman), the
gentlewoman from Florida (Ms. Ros-Lehtinen), my dear colleague from the
Committee on Rules, the gentleman from Ohio (Mr. Hall), and the others
who have worked so hard on this legislation for their efforts in
bringing this very important bipartisan bill forward. I strongly
support H.R. 1143 and

[[Page H1886]]

urge all of my colleagues to support both this open rule and the
underlying important bill.
Mr. Speaker, I urge my colleagues to support the rule.
Mr. Speaker, I reserve the balance of my time.
Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to thank my colleague, the gentleman from Florida
(Mr. Diaz-Balart), for yielding me the time.
This is an open rule. It will allow for full and fair debate on H.R.
1143 which is called the microenterprise bill for self-reliance. It is
an act of 1999 of which I am proud to be an original cosponsor.
As my colleague from Florida has described, this rule provides for 1
hour of general debate to be equally divided and controlled by the
chairman and ranking minority member of the Committee on International
Relations.
The rule permits amendments under the 5-minute rule, which is the
normal amending process in the House. All Members on both sides of the
aisle, they will have the opportunity to offer germane amendments.
This is a bipartisan bill that reflects broad congressional support.
A microenterprise is a small business with as few as one or as many
as ten employees. Loans to these companies or small businesses are
among the most cost-effective ways to help the poor lift themselves out
of poverty.
I became familiar with the potential of microenterprise to reduce
poverty because of the House Select Committee on Hunger, and I used to
chair the international task force of the committee, and later I was
chairman of the full committee. The Hunger Committee held hearings, we
issued reports, we conducted public forums to inform Congress and the
public on the importance of microcredit to reducing hunger and poverty
around the world. In one report the Hunger Committee concluded that
small loans to microenterprises can significantly raise the living
standards of the poor, increase food security and bring about
sustainable improvements in local economies. The committee further
concluded that credit to microenterprises is one way to help end the
cycle of poverty and hunger among urban and rural landless poor in
developing countries. The bill before us today strengthens and enhances
the United States leadership in the field of microenterprise
development to fight hunger and poverty in the world.
I want to congratulate the distinguished chairman, the gentleman from
New York (Mr. Gilman), the ranking minority member, the gentleman from
Connecticut (Mr. Gejdenson) of the Committee on International Relations
for their commitment to microenterprise and other poverty alleviation
programs and for their hard work in bringing this important legislation
to the floor. Special thanks is also due to the gentleman from New York
(Mr. Houghton) for his instrumental leadership on this issue.

The bill is very similar to a measure that was introduced by the
gentleman from New York (Mr. Houghton) and myself in the 105th
Congress. An amended version of the bill passed the House on a 393 vote
to 21, but it got stalled in the Senate. I am particularly pleased that
today's bill very closely resembles the original Amo Houghton bill and
Hall bill from the last Congress than the version which passed the
House.
No U.S.A. program is more effective in assisting poor people to end
their own poverty than microenterprise development. The dollars have a
multiplier effect since they are recycled to new beneficiaries when
loans are repaid.
This bill is a good bill, and it will improve the lives of many of
the world's poor with a minimum of cost. It is an open rule that was
adopted by a voice vote of the Committee on Rules. I urge adoption of
the rule and of the bill.
Mr. DIAZ-BALART. Mr. Speaker, I yield such time as he may consume to
the gentleman from California (Mr. Dreier), the distinguished chairman
of the Committee on Rules.
(Mr. DREIER asked and was given permission to revise and extend his
remarks.)
Mr. DREIER. Mr. Speaker, I rise in strong support of this rule, and I
would like to thank my friend from Miami, Florida (Mr. Diaz-Balart) for
yielding me this time.
The underlying bill is vital to the economic growth of developing
countries. H.R. 1143 is a bipartisan bill cosponsored by my friend from
Dayton, Ohio (Mr. Hall), and a number of others and is designed to
provide assistance for programs of credit and other financial services
for microenterprises in developing countries.
For a number of years I have been proud to be a supporter of
microenterprise programs. I support H.R. 1143 because it moves us
forward and sets the direction for the future of microenterprise
programs.
One of the most important elements of this legislation is the
requirement to increase the amount of assistance devoted to credit
activities designed to reach the poorest sector in developing countries
and to improve the access to the poorest, particularly women, to
microenterprise credit in developing countries. We have been informed
by the World Bank that more than 1.2 billion people in the developing
world, one-fifth of the world's entire population, subsists on less
than $1 a day. Today this Congress sends a message that America not
only supports the political and religious freedom of all people, but
also advocates the economic freedom of people in nations across this
globe. The bill will make microenterprise development an important
element of United States economic policy and assistance.
Mr. Speaker, Ronald Reagan once said that part of our foreign policy
to maintain peace abroad was to promote market-oriented solutions to
international problems, telling the story abroad of America's free
enterprise way of life. As the United States leads the way in
developing a new global financial architecture, I believe that
microenterprise will play an indispensable role in that quest.
Mr. Speaker, I strongly support this rule, and I urge my colleagues
to support the legislation as it moves forward.
Mr. HALL. Mr. Speaker, I yield 2 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the gentleman from
Ohio very much for yielding this time to me, and I ask to be able to
speak for 2 minutes.
Mr. Speaker, let me thank the gentleman from Ohio (Mr. Hall) for this
time and join in by applauding this rule and, as well, acknowledging
the vitality of the microenterprise program in developing nations.
According to the World Bank, more than 1.2 billion people in the
developing world, or one-fifth of the world's population, as we have
just heard the previous speaker acknowledge, lives on less than $1 a
day, and for Americans that is obviously a stark figure and a shocking
figure. But at the same time there is hope, there is genuine desire to
do better, and particularly for those small businesses and small-
opportunity individuals in developing nations.
Wherever one goes and visits, whether or not it is the continent of
Africa, whether or not it is in South America that is close to Texas
and Central America, they will find those individuals that simply say,
``If you'll give me a fishing rod instead of a fish, I can make a
difference.''
We had an opportunity in the session, the work recess session, to
join a presidential mission dealing with the tragedy of HIV AIDS in
Africa. Interestingly enough, one would ask how does the
microenterprise program deal with the question of HIV AIDS? Mr.
Speaker, the real issue along with the tragedy of AIDS, and prevention,
and education, the impact on children, the number of offerings that
will come about because of the tragedy of AIDS in Africa, is the idea
of giving communities an opportunity to self invest and to create
businesses where they can stay in these rural areas as opposed to
traveling from place to place.

{time} 1200

We met, for example, an elderly grandmother who was taking care of a
number of her grandchildren due to the tragedy of them losing their
parents to HIV/AIDS.
Mr. Speaker, one might find it curious and interesting, but she was
making banana beer. Part of her efforts

[[Page H1887]]

were through the support of USAID. Of course, many of these programs
interact, but the enterprise program impacts on giving opportunity to
those who have ideas to ensure that there is a return on their
investment.
In February 1997, a global microcredit summit was held in Washington
to launch a plan to expand access to credit for self-employment to the
100 million of the world's poorest families by 2005. I cannot imagine
us in any way doing something more effective, more efficient and more
far-reaching than to help those individuals who wish to help themselves
in developing nations. One of the points we have heard is that we do
want to build our economy.
Mr. Speaker, I would simply say that I support the microenterprise
program and hope that we can continue to expand it.
Mr. Speaker, I rise in support of the open rule for H.R. 1143, a bill
to assist microenterprises in developing countries. This bill will
authorize grant assistance to further the development of
microenterprises in developing countries. The grants are to be provided
to businesses, governments and other organizations in both the United
States and abroad to expand the availability of financial services,
credit and training for microentrepreneurs. In this manner these grants
will assist the poorest of the poor in their endeavors to expand their
incomes and their businesses.
The most recent statistics provided by the World Bank, indicate that
1.2 billion people in the developing world, or one-fifth of the world's
population, subsist on less than $1 a day. That is right, they live on
less than $1 a day. Women in poverty generally have larger workloads
and less access to educational and economic opportunities than their
male counterparts. This in turn means that women in these countries
lack stable employment and frayed social safety nets.
Many in the developing world turn to self-employment to generate
their livelihoods. I know first hand, from my trips to Africa that a
large percentage of the workers are self-employed. The poor have shown
remarkable courage in the face of poverty and have demonstrated an
uncanny ability to expand their incomes and business when they have
access to loans at reasonable rates.
It is the unfortunate truth that entrepreneurs are frozen in poverty
because they cannot obtain sufficient credit at reasonable rates to
build their asset base or expand their otherwise viable self-employment
activities. It is not unusual for interest rates to be as high as 10
percent per day.
Similar measures have already proven successful in these developing
countries. Nongovernmental organization such as the Grameen Bank in
Bangladesh, in Kenya, and networks such as Accion International, have
been particularly successful in lending to poorest of the poor. This
measure helps both the business and the individual to develop a sense
of accomplishment.
I urge members to support this open rule which allows for bipartisan
debate.
Mr. DIAZ-BALART. Mr. Speaker, I yield 5 minutes to the gentlewoman
from Florida (Ms. Ros-Lehtinen), the distinguished chairwoman of the
Subcommittee on International Economic Policy and Trade of the
Committee on International Relations.
Ms. ROS-LEHTINEN. Mr. Speaker, I thank my colleague, the gentleman
from Florida (Mr. Diaz-Balart) for yielding me this time.
Mr. Speaker, I rise in support of the resolution before us, H.R.
1143. As we look at the reports issued by the World Health
Organization, which document, as we have heard, that one-fifth of the
world's population lives in extreme poverty and that poverty is one of
the leading causes of death worldwide, the problem of how to help poor
families appears so immense and widespread that it seems impossible to
manage.
This, Mr. Speaker, is where microcredit comes in. It is a new vision
for ending world poverty and it provides access to credit for the
world's poor to convert their ideas into thriving small businesses.
People like Salomie Chung and Elisa Crespo from my hometown of south
Florida, who with the assistance of Kathleen Gordon of Working Capital
Florida and Gail Neumann of Results-Miami no longer need to worry about
survival and basic existence because they are now successful
entrepreneurs.
These are just a few domestic examples, but microcredit is now at
work in some form in over 40 countries.
Overall, the rate of repayment of the more established programs
ranges from 95 to 99 percent. Foreign assistance used under the
microcredit program is loaned and paid back with interest and is then
recycled and used for new loans, thus, reaching even more of the
world's poor.
Microcredit is an economically viable program which furthers U.S.
development goals and humanitarian purposes, but it needs our
unequivocal support to continue its mission and to build on its
success.
That is the objective, Mr. Speaker, of the bill before us, House
Resolution 1143. It expands upon previous legislation and ensures that
at least one-half of overall resources allocated for microcredit within
USAID are to be directed to programs serving the poorest of the poor
with loans under $300. This could mean that tens of thousands more of
the poorest will have the opportunity to empower themselves out of the
state of poverty that they are currently in.
The bill before us helps to guarantee the survival of programs which
are endangered by crises beyond the control of the programs and of the
borrowers. It calls for further action and initiative to be explored to
help enhance the development of microcredit institutions.
As H.R. 1143 states, the development of microenterprise is a vital
factor in the stable growth of developing countries and in the
development of free, open and equitable international economic systems.
It is, therefore, in the best interest of the U.S. and of the United
States Congress to support its growth and its expansion. By supporting
H.R. 1143 and microcredit in general, we are investing in the human
spirit and the desire of the world's poor to use their creativity,
their talents and their skills to control their own destiny.
For the future welfare of the men, women and children worldwide who
suffer the pain inflicted by poverty, I ask my colleagues to vote in
favor of H.R. 1143.
Mr. HALL of Ohio. Mr. Speaker, I yield 4 minutes to the gentleman
from California (Mr. Filner).
Mr. FILNER. Mr. Speaker, I thank the gentleman from Ohio (Mr. Hall)
for yielding me this time.
Mr. Speaker, I, too, rise in support of H.R. 1143, which establishes
assistance to microenterprise programs in developing countries. This
bill is very important for a number of reasons which we have already
heard. It establishes in law our support for microenterprise. Congress
has not provided full authorization up until now for microenterprises
in developing countries.
Second, this bill sets aside increased resources for microenterprise
programs for the next 2 years.
Third, it ensures that half of the funding goes to programs which
serve the very poor in loans of $300 or less. I recently saw some of
these programs in Petra in Jordan, and in Marrakesh in Morocco.
I have been a longtime supporter of microenterprise lending. Several
years ago, my senior legislative assistant went to Bangladesh to view
the Grameen Bank and microenterprise at work in that country. As many
know, the Grameen Bank was one of the first to establish such a program
and to make microloans available to the poorest of the poor.
The premise of the Grameen Bank and other microenterprise programs is
that the capitalist system in these countries does not have to be only
for the rich, and credit should be seen as a human right. If we are
looking for one single action that will enable the poor to overcome
their poverty, we should choose credit. Charity and handouts help
maintain and deepen poverty by taking away initiative. Human beings
thrive on challenges, not on charity.
The Grameen Bank is now owned by the poor people of Bangladesh and it
works exclusively with poor people. The less one has, the higher
priority one has for loans. If one has nothing, they get the highest
priority.
Ninety percent of the shares are owned by the borrowers. The board of
directors consists of 13 members, nine of whom are elected by the
borrowers and shareholders. It serves over 2.4 million borrowers, and
the payback rate is 98 percent, money which can then be re-lent to
others. So far, this program has lent out and has been repaid with over
$2 billion in Bangladesh alone.
There are many examples of how these microloans have changed the life
of the borrower. My legislative assistant spoke to a woman in a village
in central Bangladesh. Five years earlier when she was living in
complete poverty with her six children starving, she

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turned with some hesitation to the Grameen Bank.
Five years after her first loan, she graciously invited my assistant
into her home, introduced her children who are all in school, and
proudly showed off the cow that she had bought and the material she
retails to support her family.
The first years were not easy. In fact, she told of selling the milk
from her cow when her children were still hungry, but she knew she had
to repay the bank loan to get another one and she knew that that was
the way out of her poverty.
As my assistant left, she asked for her to pray that there would be
no more widows in her village because life for a widow is just too
hard.
In a neighboring village, a young woman of 26 owned two goats, one
cow, ten hens and two acres of land and was earning twice the national
average income. Her son was in the eighth grade in a country where not
quite half the children complete the fifth grade. She had had a hard
life as she was abandoned at 3 months by her parents, raised by a
neighbor, married at 12, abandoned again at 13, this time by her
husband when she was pregnant. She had never earned more than $37 a
year and owned no land.
After her visit to the Grameen Bank, she began her own career which
allowed her children to get to school and her to have a living wage.
Replicated throughout the world and now in the United States also,
microcredit programs are working to eliminate poverty worldwide.
Working in partnership with groups like Results, they have set a goal
of reaching 100 million of the world's poorest families.
This bill is very important. It is a crucial piece that will help us
reach our world and national goals. I urge my colleagues to support
H.R. 1143.
Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I would just say that the rule is open and it is a very,
very good bill. This bill provides a lot of relief, a lot of help for
hundreds of thousands of people across the world. We even do
microenterprise very well in some States in our own country. It is a
very good policy. I urge its adoption.
Mr. Speaker, I yield back the balance of my time.
Mr. DIAZ-BALART. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I fully agree with the gentleman from Ohio (Mr. Hall)
and all the speakers who have so eloquently portrayed why the
underlying legislation is so important and why we need to move forward
with it today. I also support the rule. It is a fully open rule.
Mr. Speaker, I yield back the balance of my time, and I move the
previous question on the resolution.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore (Mr. Gillmor). Pursuant to House Resolution
136 and rule XVIII, the Chair declares the House in the Committee of
the Whole House on the State of the Union for the consideration of the
bill, H.R. 1143.

{time} 1211

In the Committee of the Whole

Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 1143) to establish a program to provide assistance for programs
of credit and other financial services for microenterprises in
developing countries, and for other purposes, with Mr. Ewing in the
chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered as having
been read the first time.
Under the rule, the gentleman from New Jersey (Mr. Smith) and the
gentlewoman from California (Ms. Lee) each will control 30 minutes.
The Chair recognizes the gentleman from New Jersey (Mr. Smith).
(Mr. SMITH of New Jersey asked and was given permission to revise and
extend his remarks.)
Mr. SMITH of New Jersey. Mr. Chairman, I yield myself such time as I
may consume.
Mr. Chairman, many of us have heard or seen the phenomenal success of
microenterprise programs around the world. These programs reach the
poorest of the poor with small loans that help them to work their way
out of poverty.
The record of these programs is impressive, with the poorest clients
repaying their loans at rates between 95 and 98 percent. Unlike other
assistance programs, we do not give funds away. We lend them to people
once considered the worst credit risks on earth.
Microenterprise programs proved that with access to credit, the poor
can repay their loans and work their way out of poverty.
The bill before the House is a result of almost 4 years of consensus
building between the gentleman from New York (Mr. Gilman) and the
ranking Democratic member, the gentleman from Connecticut (Mr.
Gejdenson).
The gentleman from Connecticut (Mr. Gejdenson) and the gentleman from
New York (Mr. Gilman) and many of us have worked for a number of years
on microenterprise development programs from their first beginnings at
the Grameen Bank in Bangladesh to today when microfinancing
institutions are some of the largest lenders in many developing
countries.
The bill also builds on the work in the last Congress, the Houghton-
Hall bill. The authors of that legislation will recognize that much of
the language in this bill came directly from their bill.
This legislation started as a renewal of our bipartisan cooperative
effort with the administration, including AID and the First Lady's
office, to strengthen microfinance programs. We will recall the
President's visit to Uganda where he visited a microfinance project and
declared that this was one of the most successful ways to help the poor
in developing countries to work their way out of poverty.
Mr. Chairman, this bill accomplishes several key goals. First, it
contains the essential language that half of all microenterprise
resources go directly to support programs that provide $300 loans or
lower to the poorest of the poor.
This requirement traces back to the highly successful microcredit
summit convened by Results to dedicate the international community to
reaching half of the world's poor with credit programs by the year
2005.

{time} 1215

The bill adds a new section to the Foreign Assistance Act governing
grants to microfinance institutions, authorizing $152 million in
appropriations for fiscal year 2000 and $167 million for fiscal year
2001.
I will note that these are consensus figures of the Microenterprise
Coalition, advocacy and practitioners alike, and they are not strongly
opposed by the administration.
The bill authorizes the micro and small credit program of AID that
has helped many microentrepreneurs grow from small- to medium-sized
businesses. The bill has also two major new sections that lay the
foundation for the future growth of the microfinance sector.
First, at the suggestion of the gentleman from Connecticut (Mr.
Gejdenson), the bill establishes a microfinance loan facility to help
rescue institutions which the U.S. taxpayer has supported with
liquidity and support to prevent collapse.
We have all witnessed the destruction caused by Hurricane Mitch in
Central America. The destruction nearly caused the collapse of several
key microfinance institutions that the U.S. helped to build from the
ground up. The ad hoc rescue package assembled by Brian Atwood at AID
rescued these institutions so they can now head to recovery.
We have also had other near collapses, and the facility will help
address these emergencies in a more systematic way.
Secondly, the bill calls for a number of reports by the President to
lay out the future growth of these institutions, including a Federal
charter. Using these reports, we hope to lay out a road map for the
growth of the microfinance section over the next 10 years.
This legislation has 26 original cosponsors and has been endorsed by
the Microenterprise Coalition, including RESULTS and FINCA. It is my
understanding that the administration has moved mightily and now has
only some concerns with the legislation, and does not oppose its
adoption today.

[[Page H1889]]

The gentleman from Connecticut (Mr. Gejdenson) and the gentleman from
New York (Mr. Gilman) and I have one amendment that will make some
technical changes to the bill, to its loan facility, that were worked
out with AID. Other than that, I am not aware of any other amendments
that will be offered today.
I urge the support of this legislation. It is a good bill.
Mr. Chairman, I reserve the balance of my time.
Ms. LEE. Mr. Chairman, I yield myself such time as I may consume, and
I rise in support of H.R. 1143.
Mr. Chairman, this legislation is a product of many years of hard
work on behalf of microenterprise. I want to thank the ranking member,
the gentleman from Connecticut (Mr. Gejdenson) and the gentleman from
New York (Chairman Gilman) for several years of hard work on this
issue.
I would also like to recognize two great leaders who have done so
much to advance the cause of microcredit lending to the poor and to
empower women in developing countries. First Lady Hillary Rodham
Clinton and AID administrator Brian Atwood have worked tirelessly to
make sure that the United States takes a leadership role to expand
access to credit for self-employment to 100 million of the world's
poorest families. One-fifth of the world's population exists on less
than $1 a day, and 32,000 children die each day from preventable
malnutrition.
I had the opportunity to visit Ghana and South Africa last week, and
I met with many women entrepreneurs who were the primary income earners
for their families. Access to just a small amount of capital, I was
told, would help them raise the standard of living for their entire
families.
Many of the poor who do not have access to microenterprise programs
are forced to pay interest rates of 10 percent per day to money
lenders. In contrast, interest rates on microcredit loans average
between 2 percent and 5 percent per week. The return rate on these
loans is between 95 percent and 99 percent.
Let me briefly explain what this bill does. It permanently
establishes two new sections in statutory law to govern microenterprise
grants and loans. Under the grants section, it authorizes grants to
support microlending programs. These grants are generally used to start
new microlending programs. It authorizes $152 million for fiscal year
2000, and $167 million for fiscal year 2001 for microenterprise
programs. It mandates 50 percent of all microenterprise resources to be
used for poverty lending, defined as institutions that provide credit
and other financial services to the poorest with loans of $300 or less
in 1995 dollars.
Currently, 68 percent of loans are $300 or less, and about 47 percent
of total resources support poverty lending.
This bill creates a loan facility inside of AID. The facility will
provide concessional loans to United States-sponsored microfinance
institutions to prevent bankruptcy caused by natural disasters,
national wars, civil conflict, or national financial crises. The
facility would be supervised by representatives of the Department of
the Treasury, AID, and two representatives from the NGO community. It
requires the President to prepare a report to Congress on the most
cost-effective methods for increasing the access of poor people to
credit, other financial services, and related training.
I urge my colleagues to support this bill.
Mr. Chairman, I reserve the balance of my time.
Mr. SMITH of New Jersey. Mr. Chairman, I yield such time as he may
consume to the gentleman from North Carolina (Mr. Ballenger).
Mr. BALLENGER. Mr. Chairman, I rise today in support of H.R. 1143,
the Microenterprise Self-Reliance Act. The low-cost loans and training
opportunities provided by this program create unimaginable opportunity
and hope for people living in the poorest and most desolate areas of
the world.
As a Member who is personally committed to the growth and prosperity
of Central and South America, I have witnessed firsthand the benefits
of microenterprise and the microcredit programs to the poorest of the
poor. Through these programs, the U.S. has been able to encourage
economic growth and self-dependency in countries less fortunate than
our own.
The minimal cost of the microenterprise program yield great benefits
and have a tremendous long-term impact on the future economic and
social development of many nations, specifically those in Central
America.
I would like to give, if I may, a couple of individuals cases that I
personally have seen, first that occurred in El Salvador maybe 10 or 12
years ago. They took us to a tailor shop where this gentleman
volunteered to give me a three-piece suit, cut to my standard style and
size and everything, for $100. I don't know how the rest of the Members
feel, but this was unbelievable.
I found out that this gentleman in his time of need found out that he
could get a sewing machine for $100 that he borrowed from the
microenterprise. With that $100 and a pair of scissors, he started
producing clothes. At the time that I saw him there, he had four sewing
machines and the whole operation, and his $100 now had become $3,000
that he was able to invest. That was in El Salvador.
Several years later when we were in Nicaragua we asked, why in the
world don't microenterprises come to Nicaragua? In this particular case
they took us to a shopping area of downtown Managua and showed us a
young lady there who had borrowed $200 to start off with. She put
vegetables and flowers and seeds and so forth for sale. After 3 years
in that small investment of about $200, I asked her what her inventory
was. It was a little grocery store by then. She had $7,000 worth of
groceries there.
All of this was done by small loans that were immediately paid back.
Their loan qualities were unbelievable the way they paid it back, just
as the statistics have already shown. I would just like to recommend
highly that this is a wonderful program and we ought to do something
about it.
In many impoverished countries there are no secure financial
institutions where people can apply for loans, no training facilities
to teach people a trade, and no encouraging signs of growth and
prosperity. The microenterprise programs make these resources
available, and allow people who once had no hope of sustaining a
livable wage, it gives them a real chance to become self-sufficient.
As the U.S. continues to promote assistance, as opposed to handouts,
I think it is important for us to applaud programs that grant an
opportunity for growth. I encourage all my colleagues to vote in favor
of this legislation, which has proven to benefit the international
community that needs our help most, the poorest of the poor.
Please support the Microenterprise Self-Reliance Act.
Ms. LEE. Mr. Chairman, I yield 3 minutes to the gentlewoman from
North Carolina (Mrs. Clayton).
Mrs. CLAYTON. Mr. Chairman, I thank the gentlewoman from California
for yielding time to me.
Mr. Chairman, I am pleased to join with my colleagues in the spirit
of bipartisanship to support the goals and the objective of
microenterprises in developing countries.
Many of the world's poorest workers are self-employed. These
entrepreneurs are trapped in poverty because they cannot obtain credit
at a reasonable rate that will allow them to build their assets and
expand their businesses.
The global credit program for microenterprises provides funds that
will increase the flow of credit from the formal financial sector to
the micro entrepreneurs, with a view to improving their productivity,
income, and employment level.
Over the past years we have learned firsthand the dramatic impact
that microenterprise has had on the lives of millions of the world's
poorest families, enabling many of them to pull themselves out of
poverty. Our support for microenterprise needs to be strengthened, and
our resolve and commitment to ensure that we meet the goals and
objectives of microenterprise fortified.
Two examples were shared recently by RESULTS with my office. In
Uganda a woman borrowed money to invest in her brick-making company.
She was producing 1,000 bricks, and she borrowed money, and she has now
increased it to 5,000 bricks. She uses the money to school her
children, to allow them to have a better opportunity than herself.

[[Page H1890]]

The second example is in El Salvador, a woman borrowed $57 to
increase her bread-making business. She has been so successful she has
now bought out her supplier.
These examples are indeed proof that this program is a success, not
only for the people it is intended for, but also their ability to pay
back the loans exceeds that in the private sector.
We must recommit ourselves to ensuring that 100 million of the
world's poorest families are afforded the opportunity that many of us
take for granted, the opportunity to direct and shape our future by
investing our skills, talents, and energy into building, sustaining,
and expanding small businesses.
H.R. 1143 grants that opportunity and assurance by authorizing grant
assistance of $152 million in the fiscal year 2000, $167 million in
fiscal year 2001, to further the development of microenterprise in
developing countries. This is a modest investment that can have a
powerful impact on the eradication of poverty.
Microcredit is not charity, nor is it big government gone astray, but
rather, microcredit is a sound and wise investment that deserves
priority and protection. Without a focused effort to empower
individuals in the poorest regions of the world, dire poverty will
continue to plague our global community, draining our capital
resources, sapping our political will, and destroying countless human
lives worldwide.
I urge my colleagues to join me in support of this desperately needed
legislation.
Mr. SMITH of New Jersey. Mr. Chairman, I yield such time as he may
consume to the gentleman from North Carolina (Mr. Ballenger) for the
purposes of a colloquy.
Mr. BALLENGER. Mr. Chairman, Section 4(b)5 of the bill states that
``Assistance provided under this subsection may only be used to support
microenterprise programs and may not be used to support programs not
directly related to the purposes described in paragraph (1).''
I would ask the gentleman from New Jersey (Chairman Smith), do I
understand correctly that this language prohibits requirements not
directly related to the enterprise for which credit is extended from
being imposed on a microcredit beneficiary as a condition on their
eligibility for assistance?
Mr. SMITH of New Jersey. Mr. Chairman, if the gentleman will yield, I
would say to the gentleman that this is correct.
This colloquy, for the purposes of the record and for my colleagues,
has been worked out with the gentleman from New York (Chairman Gilman)
and with his full concurrence.
The answer to the question is, that is correct.
Mr. BALLENGER. Requirements not directly related to the
microenterprise cannot be considered as a factor affecting the amount
or terms of the assistance that microcredit applicants are eligible to
receive?
Mr. SMITH of New Jersey. Yes, that is correct. Funds provided by this
bill may be used only to support microenterprise programs. A
requirement that a microcredit applicant fulfill some unrelated
precondition would constitute support for something other than
microenterprise programs. Thus, such requirements are expressly
prohibited by section 4(b)5.
Mr. BALLENGER. Thus, to take an extreme example, a program funded by
this bill could not require that an applicant be sterilized before she
is eligible for microenterprise assistance?
Mr. SMITH of New Jersey. Yes. Section 4(b)5 would prohibit funding of
any program that attempted to impose such a condition.
Mr. BALLENGER. I thank the gentleman from New Jersey (Mr. Smith).
Mr. SMITH of New Jersey. Mr. Chairman, I yield 4 minutes to the
gentleman from Nebraska (Mr. Bereuter), the vice chairman of the
Committee and the chairman of the Subcommittee on Asia and the Pacific.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)

{time} 1230

Mr. BEREUTER. Mr. Chairman, I rise in support of the legislation. I
thank the gentleman from New Jersey (Mr. Smith) for yielding me this
time.
I am an original cosponsor and strong supporter of this bill. This
Member first became familiar with the microenterprise concept during
the 99th Congress. At that time, an organization known by its acronym
of FINCA, F-I-N-C-A, worked closely with poverty stricken areas of
Latin America and South America. The concept of microenterprises, I
think had not had much visibility at all on Capitol Hill or in America
until we learned about FINCA's good work.
Having since visited numerous developing countries while serving on
the Committee on International Relations, this Member can testify to
the utter despair and grinding poverty that is all too commonplace
throughout so much of the world and to the hope which microenterprise
programs can provide.
Much of the grinding poverty could be redressed by just a few
dollars' worth of tools and raw materials. In countries where the
average wage may be no more than 50 cents a day, as little as $10 can
provide someone with the reed to make straw mats or leather for shoes.
Just a few dollars can stock a peddler's cart and allow him or her to
rise above helpless poverty.
Microenterprise initiatives will not make anyone rich, but it will
pay for tuition for a child's basic education or the cost of a concrete
surface to replace an old dirt floor, or a pump where the water is not
tainted. Importantly, microenterprise can provide these small luxuries,
or I would say basic elements of life, but they come only to those who
are willing to combine these small loans with hard work.
Recipients of these loans certainly do work hard. It is reported that
recipients repay the principal within the first month in many cases,
and 95 to 98 percent of recipients repay the loans on time. Indeed,
that repayment rate is incredibly good as compared to commercial banks'
repayments. It also serves, I think, as a strong testament to
recipients' receptivity to these programs.
The legislation before this body today gives an important boost to
existing microenterprise programs like the Grameen Bank in Bangladesh,
where microenterprise has had great positive effects for a whole
generation of women; or BancoSol, which now has the largest number of
clients of any financial institution in Bolivia. This legislation will
ensure their survival.
H.R. 1143 sets forth the guidelines to ensure that the needs of the
poorest of the poor are addressed. One-half of all microenterprise
resources are devoted to loans of $300 or less.
Importantly, the legislation establishes a facility specifically
devoted to countries devastated by war or natural disasters. This is a
particularly important provision, Mr. Chairman. It means all is not
lost when torrential flooding destroys an entire economy, as was the
case last year in Bangladesh. It means that people in war-torn regions
can return home and try to start life anew, as has been the case in
Rwanda and Cambodia.
Mr. Chairman, H.R. 1143 speaks to the best part of our collective
conscience. Through this legislation, the U.S. is offering hope to
those who have no hope, a helping hand to those who want to make for
themselves a better life.
This Member congratulates the author of this initiative, the
gentleman from New York (Mr. Gilman), the chairman of the Committee on
International Relations. It is largely through his efforts that
microenterprise has become such an important part of our foreign
assistance efforts.
This Member would also thank the distinguished gentleman from
Connecticut (Mr. Gejdenson), the ranking Democrat on the committee, for
his constructive efforts to move this legislation forward.
I thank the gentleman from New Jersey (Mr. Smith) for yielding me
this time and for his support of the legislation.
Ms. LEE. Mr. Chairman, I yield 3 minutes to the gentlewoman from
Michigan (Ms. Kilpatrick).
(Ms. KILPATRICK asked and was given permission to revise and extend
her remarks.)
Ms. KILPATRICK. Mr. Chairman, first, to the gentlewoman from
California (Ms. Lee), sitting in for the gentleman from Connecticut
(Mr. Gejdenson), I thank her so much for yielding me the time. I thank
the gentleman from New York (Chairman Gilman) as

[[Page H1891]]

well as the gentleman from Connecticut (Mr. Gejdenson), our ranking
member, and the entire committee for bringing to us such an important
bill.
As has been mentioned, whether in Bangladesh, India, Africa, or some
other country of the world, including the United States, microcredit,
the assistance to small businesses, primarily women I might add, is the
difference between success and failure in so many children's lives.
As has been said earlier, the World Bank reports that 1.2 billion
people in the world exist on less than $1 a day. That is 20 percent of
the world's population exist on less than $1 per day.
This microenterprise legislation provides for the children of these
families hope for the future. It provides a way where their parents, in
many cases women, can have their own businesses, can earn their own
fees and dollars and then send their children to school to receive an
adequate education.
I commend the subcommittee, the gentleman from New York (Mr. Gilman),
the chairman of the Committee on International Relations, and all of
those who brought this bill to the floor.
I recently returned from overseas and had another first-hand look at
some very successful microenterprise operations. They are in fact
working. They are the difference between success and failure, not only
in the woman's life, who in many cases is the breadwinner, is the
nurturer of the family, is the person that instills strength and self-
confidence in children, that one can be what one wants to be.
It has been reported that microenterprise, also the loans are repaid
at a much higher rate than traditional lending practices; that, not
only are the businesses successful, but the payback in large measure
has been paid back.
So, Mr. Chairman, let us move H.R. 1143 out of this Chamber and to
the signature of the President. It is the difference between success
and failure. Microenterprising is a tool not only used in this country
but in the poorest of the poor countries of the world to say that this
is a wonderful world. When we work together, we can save many
children's lives and offer them hope for the future.
Ms. LEE. Mr. Chairman, I yield 3 minutes to the gentleman from
Virginia (Mr. Moran).
Mr. MORAN of Virginia. Mr. Chairman, I thank the very distinguished
gentlewoman from California (Ms. Lee) for yielding me this time and for
leading the debate on our side of the aisle today and for her support
for this program.
This is a neat, wonderful concept, and it is something that we can
agree on, which also says a lot as well. We ought to be looking for
more of these ideas.
It is a testament to the strength of the human spirit, this program.
It has taught a couple of things. One is that poor people would much
rather that we give them loans than grants, that we have confidence in
their ability to pay money back, that all they really need is a little
seed money to get started.
The second thing it teaches us is that the most underused economic
resource in this world are the women of the world who have always been
doing most of the work but very seldom have they ever had any real
control, particularly economic control, over their lives.
So the programs that work are the ones that go out and find the women
in the villages that know what is going on and have the fortitude and
the determination to provide for their families and give them the
resources. Boy, the ideas that they come up with and the kind of effort
that they put into these little microenterprise efforts, they are just
heartwarming.
It should be known also that these microenterprise banks charge a lot
of money in interest, a lot of them, more interest than we would want
to pay. Yet, invariably, the vast majority of these loans get paid off.
It is just unbelievable what people can do with just a little seed
money if given the confidence and the resources.
So I want to thank the gentleman from New York (Mr. Gilman) and the
gentleman from New Jersey (Mr. Smith) and the gentleman from Nebraska
(Mr. Bereuter) and all the others on the Republican side and certainly
the gentleman from Connecticut (Mr. Gejdenson), our ranking member, and
the gentlewoman from California (Ms. Lee), and all of the members of
the committee.
We have got a good thing going here. It costs us very little money.
The only people that seem to have some reluctance about this is the
White House. I read their statement of administration policy, and I
cannot really figure out what they are trying to say and what their
objection would be. But I am sorry that they do not get fully behind
this, because they have done a lot to make microenterprise programs
work. They should have endorsed this piece of legislation. But I know
that they are going to fully fund it, and they are going to get behind
it, particularly USAID, and make it work.
We cannot always control the situations, and we have had some real
catastrophes that have prevented people in Third World countries from
being able to pay back their loans. Bangladesh comes to mind. So we
need some provision to make sure that money is available. This provides
that. It ensures that there is going to be this revolving fund
available.
This is the right way to do it. We are institutionalizing it. This is
going to get a unanimous vote, I hope, and it deserves one. The people
of the Third World, to take advantage of this, deserve the little seed
money that this provides to them.
Ms. LEE. Mr. Chairman, I yield myself such time as I may consume.
I would like to thank the gentleman from Virginia (Mr. Moran) for his
kind remarks and also for his acknowledgment and recognition of the
competence and the tenacity and the commitment of women to economic
development and job creation.
Mr. MORAN of Virginia. Mr. Chairman, if the gentlewoman will yield
for just a moment, we men have always known that; it is just seldom
that we ever admitted it.
Ms. LEE. Mr. Chairman, I thank the gentleman from Virginia for coming
out front and talking about it publicly.
Mr. LANTOS. Mr. Chairman, I urge my colleagues to join me in
supporting H.R. 1143, the Microenterprise for Self-Reliance Act of
1999. I support this bill because I have witnessed first-hand the
uplifting effects of microcredit on the economic and humanitarian
conditions of struggling nations around the world. I have closely
monitored its enormously positive influence on women and ethnic
minorities, those most likely to face discrimination in creating small
businesses and establishing social support networks in their
communities. H.R. 1143 would allow these essential developments to
continue and expand, aiding the stability of new democracies and
enabling all citizens a stake in their future directions.
The microcredit program, more than any other government initiative,
is founded on the free market ideals central to America's greatness. By
providing small amounts of start-up capital to aspiring entrepreneurs,
productive businesses can be established which, in a collective manner,
change society for the better. For example, when a woman in a small
African nation borrows a few dollars to set up a crafts shop, she does
far more than better her family's financial situation. She may create
employment opportunities for others in her small community, she may
held to break generations of poverty in her town, she may generate
income that will allow the creation of even more commerce, she may
break down age-old stereotypes of women's social roles, and she may
make it possible for untold numbers of women to realize the
opportunities provided to her by the blessing of microcredit.
As the distinguished Administrator of the U.S. Agency for
International Development (USAID), J. Brian Atwood, explained:
``Microenterprise is one of our most effective tools to foster bottom-
up growth and to give women an opportunity to make a place for
themselves in business and in their communities.'' For only a minimal
investment--few loans exceed $300, and the return rate is nearly 100
percent--we can peacefully alter centuries of history, one entrepreneur
at a time.
H.R. 1143 will strengthen this much-needed program by authorizing
increased funds ($152 million in FY 2000 and $167 million in FY 2001)
and ensuring that at least 50 percent of microenterprise resources be
used for poverty lending to the neediest participants in Third World
economies. Furthermore, H.R. 1143 would permanently establish two new
provisions in law to govern grants and loans, and it would create a
loan facility inside USAID to help U.S.-sponsored microfinance
institutions survive natural disasters, civil wars, and national
financial crises.
I applaud these reforms, and I commend International Relations
Committee Chairman Benjamin A. Gilman and Ranking Member

[[Page H1892]]

Sam Gejdenson for their hard work in working out the provisions of this
legislation.
Mr. Chairman, I would also like to recognize the extraordinary
commitment of First Lady Hillary Rodham Clinton to the microenterprise
program. Since the earliest days of the Clinton Presidency, Mrs.
Clinton has used her exceptional brilliance and influence to promote
this initiative around the world. Long before other opinion leaders
understood the importance of targeted microcredit investments, she was
proclaiming the benefits of this program for women and families in a
host of nations. I would also like to note the impressive contributions
of Administrator Atwood in implementing this essential component of our
foreign policy.
Mr. Chairman, I urge my colleagues to support H.R. 1143.
Mr. LUTHER. Mr. Chairman, I rise today in support of H.R. 1143, the
Microenterprise for Self-Reliance Act of 1999. Microcredit is the
process of providing small loans to very poor people at commercial
interest rates for the startup or expansion of small business ventures.
It has been successful in promoting economic growth and ending the
worst aspects of poverty in some of the most destitute places in the
world.
Unfortunately, despite its proven track record, microcredit has not
been utilized to its full potential. Funding for microcredit within the
U.S. Agency for International Development has not kept pace with the
growing capacity to lend. Despite the fact that in 1994 USAID set the
goal of directing half of overall microenterprise funds to programs
serving the poorest people in loans of $300 or less by the end of 1996,
only about 41 percent of these funds are currently reaching this target
population.
The Microenterprise for Self-Reliance Act of 1999 calls for $152
million in fiscal year 2000 and $167 million in fiscal year 2001 and
designates half of all microenterprise funds as loans of $300 or less
for the neediest people in the world. Along with helping the world's
poorest people, this legislation increases work skills and improves the
economies of the developing nations where microcredit initiatives are
in place. Currently, approximately 1.2 billion people--one fifth of the
world population--live in extreme poverty. As long as poverty continues
to plague so many millions, there will be no lasting peace or stability
in our world.
Microcredit is one of the most cost-effective and successful ways to
combat poverty and help achieve peace. Therefore, I urge my colleagues
to vote for H.R. 1143.
Mr. PORTER. Mr. Speaker, I rise in strong support of this
legislation. The concept of microlending has existed for over two
decades, created by Muhammed Yunus through the Grameen Bank in
Bangladesh. This concept has enjoyed incredible success and has
improved the lives of millions of people, especially women. The Grameen
Bank has inspired microlending programs in fifty-six other countries
and has been copied by 5,000 international institutions. In fact, this
system has even been adopted by the Women's Self-Employment Project in
Chicago to successfully wean unwed mothers off of welfare.
I am very pleased that the U.S. Congress is not only condoning U.S.
participation in the microcredit system but expanding and improving our
involvement in these programs with this legislation. I have seen the
incredible impact that a small loan can have on a single family in the
developing world. A short-term loan of $75 used to be unaccessible for
most people in these countries. However, through the Grameen Bank and
bilateral microcredit programs, these loans are now available and
becoming more widespread. The reason for this success and expansion is
due to the unparalleled rate of repayment. In 1997, the Grameen Bank
had a 94 percent repayment rate.
Unfortunately, microcredit programs have been drastically impacted by
the recent natural disasters and financial crises in various regions of
the world. However, these events should not be interpreted as failures
in microcredit programs, but as opportunities for expanding the
program. Farmers in Nicaragua are in desperate need of a few dollars to
replant their crops. Weavers in Thailand have seen their currency
plummet and just need a small amount of investment to keep their
fledgling businesses stay afloat. While Grameen Bank loan repayment
rates plunged to 68 percent immediately after the floods in Bangladesh
last year, these rates rebounded to 88 percent in just a few months.
H.R. 1143 will expand these credit programs and provided the cushion
necessary to enable the financial institutions and other organizations
operating these microcredit programs to help those that are in the most
desperate need. This legislation provides some of the important
infrastructure programs necessary for many countries struggling from
recent crises to move from disaster assistance to economic development.
Mrs. ROUKEMA. Mr. Speaker, I rise in support of H.R. 1143, the
``Microenterprise for Self-Reliance Act of 1999.'' H.R. 1143 would
provide vital assistance in the form of credit and other financial
services to microentrepreneur programs as part of a global approach to
aiding the world's poorest individuals.
Many people in this world rely on self-employment as a necessary
means for their livelihood. In this regard, the importance of the role
of microentrepreneurs in our global economy cannot be overlooked. The
general philosophy of the microenterprise industry is to bring new
sources of income to segments of the population where job opportunities
are low by providing small amounts of credit to those whom have not had
access to commercial credit. Microfinance programs are critical to the
fight against hunger and poverty. Such programs are a leveraging tool
for decreasing dependence on foreign assistance. H.R. 1143 authorizes
grants to support microlending programs in the amount of $152 million
for FY 2000 and $167 million for FY 2001. Fifty percent of these funds
must be used for loans of $300 or less.
Last year, the Financial Times reported that ``though Latin American
has moved furthest towards the commercialization of microfinance, it is
also commonplace in other developing countries, and the World Bank
estimates that more than $7 billion of microcredit is outstanding.''
A report released by the U.N. last year acknowledges the success of
microcredit in Latin America and Asia. However, the report states that
``it is not clear if the extent to which microcredit has spread, or can
potentially spread, can make a major dent in global poverty.'' The
report based this conclusion on the assertion that ``the poorest of the
poor'' are usually ``not in a position to undertake an economic
activity partly because they lack business skills and even the
motivation for business.'' While I support H.R. 1143, I make this point
for the purpose of impressing upon this Congress the importance of
ensuring that the extension of funds to poor microentrepreneurs is in
reality contributing to the battle against poverty and hunger.
Innovative ways of bringing economic vitalization to areas of the
world that sorely lack any financial sustainability should be a
priority for any global financial architecture. H.R. 1143 contributes
to that strategy and I urge its passage.
Ms. LEE. Mr. Chairman, I have no further requests for time, and I
yield back the balance of my time.
Mr. SMITH of New Jersey. Mr. Chairman, I yield back the balance of my
time.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the bill shall be considered under the 5-minute
rule by section, and each section shall be considered read.
During consideration of the bill for amendment, the Chair may accord
priority in recognition to a Member offering an amendment that he has
printed in the designated place in the Congressional Record. Those
amendments will be considered read.
The Chairman of the Committee of the Whole may postpone a request for
a recorded vote on any amendment and may reduce to a minimum of 5
minutes the time for voting on any postponed question that immediately
follows another vote, provided that the time for voting on the first
question shall be a minimum of 15 minutes.
The Clerk will designate section 1.
The text of section 1 is as follows:
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 for Self-
Reliance Act of 1999''.

Mr. SMITH of New Jersey. Mr. Chairman, I ask unanimous consent that
the remainder of the bill be printed in the Record, and open to
amendment at any point.
The CHAIRMAN. Is there objection to the request of the gentleman from
New Jersey?
There was no objection.
The text of the remainder of the bill is as follows:

SEC. 2. FINDINGS AND DECLARATIONS OF POLICY.

The Congress makes the following findings and declarations:
(1) According to the World Bank, more than 1,200,000,000
people in the developing world, or one-fifth of the world's
population, subsist on less than $1 a day.
(2) Over 32,000 of their children die each day from largely
preventable malnutrition and disease.
(3)(A) Women in poverty generally have larger work loads
and less access to educational and economic opportunities
than their male counterparts.
(B) Directly aiding the poorest of the poor, especially
women, in the developing world has a positive effect not only
on family incomes, but also on child nutrition, health

[[Page H1893]]

and education, as women in particular reinvest income in
their families.
(4)(A) The poor in the developing world, particularly
women, generally lack stable employment and social safety
nets.
(B) Many turn to self-employment to generate a substantial
portion of their livelihood. In Africa, over 80 percent of
employment is generated in the informal sector of the self-
employed poor.
(C) These poor entrepreneurs are often trapped in poverty
because they cannot obtain credit at reasonable rates to
build their asset base or expand their otherwise viable self-
employment activities.
(D) Many of the poor are forced to pay interest rates as
high as 10 percent per day to money lenders.
(5)(A) The poor are able to expand their incomes and their
businesses dramatically when they can access loans at
reasonable interest rates.
(B) Through the development of self-sustaining microfinance
programs, poor people themselves can lead the fight against
hunger and poverty.
(6)(A) On February 2-4, 1997, a global Microcredit Summit
was held in Washington, District of Columbia, to launch a
plan to expand access to credit for self-employment and other
financial and business services to 100,000,000 of the world's
poorest families, especially the women of those families, by
2005. While this scale of outreach may not be achievable in
this short timeframe, the realization of this goal could
dramatically alter the face of global poverty.
(B) With an average family size of five, achieving this
goal will mean that the benefits of microfinance will thereby
reach nearly half of the world's more than 1,000,000,000
absolute poor people.
(7)(A) Nongovernmental organizations, such as those that
comprise the Microenterprise Coalition (such as the Grameen
Bank (Bangladesh,) K-REP (Kenya), and networks such as Accion
International, the Foundation for International Community
Assistance (FINCA), and the credit union movement) are
successful in lending directly to the very poor.
(B) Microfinance institutions such as BRAC (Bangladesh),
BancoSol (Bolivia), SEWA Bank (India), and ACEP (Senegal) are
regulated financial institutions that can raise funds
directly from the local and international capital markets.
(8)(A) Microenterprise institutions not only reduce
poverty, but also reduce the dependency on foreign
assistance.
(B) Interest income on the credit portfolio is used to pay
recurring institutional costs, assuring the long-term
sustainability of development assistance.
(9) Microfinance institutions leverage foreign assistance
resources because loans are recycled, generating new benefits
to program participants.
(10)(A) The development of sustainable microfinance
institutions that provide credit and training, and mobilize
domestic savings, are critical components to a global
strategy of poverty reduction and broad-based economic
development.
(B) In the efforts of the United States to lead the
development of a new global financial architecture,
microenterprise should play a vital role. The recent shocks
to international financial markets demonstrate how the
financial sector can shape the destiny of nations.
Microfinance can serve as a powerful tool for building a more
inclusive financial sector which serves the broad majority of
the world's population including the very poor and women and
thus generate more social stability and prosperity.
(C) Over the last two decades, the United States has been a
global leader in promoting the global microenterprise sector,
primarily through its development assistance programs at the
United States Agency for International Development.
Additionally, the United States Department of the Treasury
and the Department of State have used their authority to
promote microenterprise in the development programs of
international financial institutions and the United Nations.
(11)(A) In 1994, the United States Agency for International
Development launched the ``Microenterprise Initiative'' in
partnership with the Congress.
(B) The initiative committed to expanding funding for the
microenterprise programs of the Agency, and set a goal that,
by the end of fiscal year 1996, half of all microenterprise
resources would support programs and institutions that
provide credit to the poorest, with loans under $300.
(C) In order to achieve the goal of the microcredit summit,
increased investment in microcredit institutions serving the
poorest will be critical.
(12) Providing the United States share of the global
investment needed to achieve the goal of the microcredit
summit will require only a small increase in United States
funding for international microcredit programs, with an
increased focus on institutions serving the poorest.
(13)(A) In order to reach tens of millions of the poorest
with microcredit, it is crucial to expand and replicate
successful microcredit institutions.
(B) These institutions need assistance in developing their
institutional capacity to expand their services and tap
commercial sources of capital.
(14) Nongovernmental organizations have demonstrated
competence in developing networks of local microfinance
institutions and other assistance delivery mechanisms so that
they reach large numbers of the very poor, and achieve
financial sustainability.
(15) Recognizing that the United States Agency for
International Development has developed very effective
partnerships with nongovernmental organizations, and that the
Agency will have fewer missions to carry out its work, the
Agency should place priority on investing in those
nongovernmental network institutions that meet performance
criteria through the central funding mechanisms of the
Agency.
(16) By expanding and replicating successful microcredit
institutions, it should be possible to create a global
infrastructure to provide financial services to the world's
poorest families.
(17)(A) The United States can provide leadership to other
bilateral and multilateral development agencies as such
agencies expand their support to the microenterprise sector.
(B) The United States should seek to improve coordination
among G-7 countries in the support of the microenterprise
sector in order to leverage the investment of the United
States with that of other donor nations.
(18) Through increased support for microenterprise,
especially credit for the poorest, the United States can
continue to play a leadership role in the global effort to
expand financial services and opportunity to 100,000,000 of
the poorest families on the planet.

SEC. 3. PURPOSES.

The purposes of this Act are--
(1) to make microenterprise development an important
element of United States foreign economic policy and
assistance;
(2) to provide for the continuation and expansion of the
commitment of the United States Agency for International
Development to the development of microenterprise
institutions as outlined in its 1994 Microenterprise
Initiative;
(3) to support and develop the capacity of United States
and indigenous nongovernmental organization intermediaries to
provide credit, savings, training and technical services to
microentrepreneurs;
(4) to increase the amount of assistance devoted to credit
activities designed to reach the poorest sector in developing
countries, and to improve the access of the poorest,
particularly women, to microenterprise credit in developing
countries; and
(5) to encourage the United States Agency for International
Development to coordinate microfinance policy, in
consultation with the Department of the Treasury and the
Department of State, and to provide global leadership in
promoting microenterprise for the poorest among bilateral and
multilateral donors.

SEC. 4. 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--
(1) by redesignating the second section 129 (as added by
section 4 of the Torture Victims Relief Act of 1998 (Public
Law 105-320)) as section 130; and
(2) by adding at the end the following new section:

``SEC. 131. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

``(a) Findings and Policy.--The Congress finds and declares
that--
``(1) the development of microenterprise is a vital factor
in the stable growth of developing countries and in the
development of free, open, and equitable international
economic systems;
``(2) it is therefore in the best interest of the United
States to assist the development of microenterprises in
developing countries; and
``(3) the support of microenterprise can be served by
programs providing credit, savings, training, and technical
assistance.
``(b) Authorization.--(1) In carrying out this part, the
President is authorized to provide grant assistance for
programs to increase the availability of credit and other
services to microenterprises lacking full access to capital
and training through--
``(A) grants to microfinance institutions for the purpose
of expanding the availability of credit, savings, and other
financial services to microentrepreneurs;
``(B) training, technical assistance, and other support for
microenterprises to enable them to make better use of credit,
to better manage their enterprises, and to increase their
income and build their assets;
``(C) capacity building for microfinance institutions in
order to enable them to better meet the credit and training
needs of microentrepreneurs; and
``(D) policy and regulatory programs at the country level
that improve the environment for microfinance institutions
that serve the poor and very poor.
``(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;
``(C) other indigenous governmental and nongovernmental
organizations; or
``(D) business development services, including indigenous
craft programs.
``(3) In carrying out sustainable poverty-focused programs
under paragraph (1), 50 percent of all microenterprise
resources shall be used for direct support of programs under
this subsection through practitioner institutions that
provide credit and other financial

[[Page H1894]]

services to the poorest with loans of $300 or less in 1995
United States dollars and can cover their costs of credit
programs with revenue from lending activities or that
demonstrate the capacity to do so in a reasonable time
period.
``(4) The President should continue support for central
mechanisms and missions that--
``(A) provide technical support for field missions;
``(B) strengthen the institutional development of the
intermediary organizations described in paragraph (2);
``(C) share information relating to the provision of
assistance authorized under paragraph (1) between such field
missions and intermediary organizations; and
``(D) support the development of nonprofit global
microfinance networks, including credit union systems, that--
``(i) are able to deliver very small loans through a vast
grassroots infrastructure based on market principles; and
``(ii) act as wholesale intermediaries providing a range of
services to microfinance retail institutions, including
financing, technical assistance, capacity building and safety
and soundness accreditation.
``(5) Assistance provided under this subsection may only be
used to support microenterprise programs and may not be used
to support programs not directly related to the purposes
described in paragraph (1).
``(c) Monitoring System.--In order to maximize the
sustainable development impact of the assistance authorized
under subsection (a)(1), the Administrator of the United
States Agency for International Development shall 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;
``(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; and
``(4) provides a basis for recommendations for adjustments
to measures for reaching the poorest of the poor, including
proposed legislation containing amendments to improve
paragraph (3).
``(d) Authorization of Appropriations.--
``(1) In general.--(A) There are authorized to be
appropriated $152,000,000 for fiscal year 2000 and
$167,000,000 for fiscal year 2001 to carry out this section.
``(B) Amounts appropriated pursuant to the authorization of
appropriations under subparagraph (A) are authorized to
remain available until expended.
``(2) Rule of construction.--Amounts authorized to be
appropriated under paragraph (1) are in addition to amounts
otherwise available to carry out this section.''.

SEC. 5. 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 enterprises are a
vital factor in the stable growth of de- veloping 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 development of the enterprises of the
poor 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 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.
``(c) Eligibility Criteria.--The Administrator of the
United States Agency for International Development shall
establish criteria for determining which entities described
in subsection (b) are eligible to carry out activities, with
respect to micro- and small enterprises, assisted under this
section. Such criteria may include the following:
``(1) The extent to which the recipients of credit from the
entity do not have access to the local formal financial
sector.
``(2) The extent to which the recipients of credit 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 to the poor.
``(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 micro- and small
enterprise programs and may not be used to support programs
not directly related to the purposes described in subsection
(b).
``(e) Authorization of Appropriations.--
``(1) In general.--(A) There are authorized to be
appropriated $1,500,000 for each of the fiscal years 2000 and
2001 to carry out this section.
``(B) Amounts authorized to be appropriated under
subparagraph (A) shall be made available for the subsidy
cost, as defined in section 502(5) of the Federal Credit
Reform Act of 1990, for activities under this section.
``(2) Administrative expenses.--There are authorized to be
appropriated $500,000 for each of the fiscal years 2000 and
2001 for the cost of administrative expenses in carrying out
this section.
``(3) Rule of construction.--Amounts authorized to be
appropriated under this subsection are in addition to amounts
otherwise available to carry out this section.''.

SEC. 6. MICROFINANCE LOAN FACILITY.

Chapter 1 of part 1 of the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.), as amended by this Act, is further
amended by adding the following new section:

``SEC. 132. UNITED STATES MICROFINANCE LOAN FACILITY.

``(a) Establishment.--The Administrator of the United
States Agency for International Development is authorized to
establish a United States Microfinance Loan Facility
(hereinafter in this section referred to as the `Facility')
to pool and manage the risk from natural disasters, war or
civil conflict, national financial crisis, or short-term
financial movements that threaten the long-term development
of United States-supported microfinance institutions.
``(b) Supervisory Board of the Facility.--(1) The Facility
shall be supervised by a board composed of the following
representatives appointed by the President not later than 180
days after the date of the enactment of Microenterprise for
Self-Reliance Act of 1999:
``(A) 1 representative from the Department of the Treasury.
``(B) 1 representative from the Department of State.
``(C) 1 representative from the United States Agency for
International Development.
``(D)(i) 2 United States citizens from United States
nongovernmental organizations that operate United States-
sponsored microfinance activities.
``(ii) Individuals described in clause (i) shall be
appointed for a term of 2 years.
``(2) The Administrator of the United States Agency for
International Development or his designee shall serve as
Chairman and an additional voting member of the board.
``(c) Disbursements.--(1) The board shall make
disbursements from the Facility to United States-sponsored
microfinance institutions to prevent the bankruptcy of such
institutions caused by (A) natural disasters, (B) national
wars or civil conflict, and (C) national financial crisis or
other short term financial movements that threaten the long-
term development of United States-supported microfinance
institutions. Such disbursements shall be made as
concessional loans that are repaid maintaining the real value
of the loan to microfinance institutions that demonstrate the
capacity to resume self-sustained operations within a
reasonable time period. The Facility shall provide for loan
losses with each loan disbursed.
``(2) During each of the fiscal years 2001 and 2002, funds
may not be made available from the Facility until 15 days
after notification of the availability has been provided to
the congressional committees specified in section 634A of
this Act in accordance with the procedures applicable to
reprogramming notifications under that section.
``(d) Report.--Not later than 60 days after the date on
which the last representative to the board is appointed
pursuant to subsection (b), the chairman of the board shall
prepare and submit to the appropriate congressional
committees a report on the policies, rules, and regulations
of the Facility.
``(e) Funding.--(1) Not more than $5,000,000 of amounts
made available to carry out sections 103 through 106 of this
Act for each of the fiscal years 2000 and 2001 may be made
available to carry out this section for each such fiscal
year.
``(2) Amounts made available under paragraph (1) are in
addition to amounts available under other provisions of law
to carry out this section.
``(f) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means the Committee on
International Relations of the House of Representatives and
the Committee on Foreign Relations of the Senate.
``(2) United states-supported microfinance institution.--
The term `United States-supported microfinance institution'
means a financial intermediary that has received funds made
available under this Act for fiscal year 1980 and each
subsequent fiscal year.''.

SEC. 7. REPORT RELATING TO FUTURE DEVELOPMENT OF MICROFINANCE
INSTITUTIONS.

(a) Report.--Not later than 180 days after the date of the
enactment of this Act, the

[[Page H1895]]

President, in consultation with the Administrator of the
United States Agency for International Development, the
Secretary of State, and the Secretary of the Treasury, shall
prepare and transmit to the appropriate congressional
committees a report on the most cost-effective methods for
increasing the access of poor people to credit, other
financial services, and related training.
(b) Contents.--The report described in subsection (a)--
(1) should include how the President, in consultation with
the Administrator of the United States Agency for
International Development, the Secretary of State, and the
Secretary of the Treasury, will jointly develop a
comprehensive strategy for advancing the global
microenterprise sector in a way that maintains market
principles while assuring that the very poor, particularly
women, obtain access to financial services; and
(2) shall provide guidelines and recommendations for--
(A) instruments to assist microenterprise networks to
develop multi-country and regional microlending programs;
(B) technical assistance to foreign governments, foreign
central banks and regulatory entities to improve the policy
environment for microfinance institutions, and to strengthen
the capacity of supervisory bodies to supervise microcredit
institutions;
(C) the potential for federal chartering of United States-
based international microfinance network institutions,
including proposed legislation;
(D) instruments to increase investor confidence in
microcredit institutions which would strengthen the long-term
financial position of the microcredit institutions and
attract capital from private sector entities and individuals,
such as a rating system for microcredit institutions and
local credit bureaus;
(E) an agenda for integrating microfinance into United
States foreign policy initiatives seeking to develop and
strengthen the global finance sector; and
(F) innovative instruments to attract funds from the
capital markets, such as instruments for leveraging funds
from the local commercial banking sector, and the
securitization of microloan portfolios.
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means the Committee on International Relations of the House
of Representatives and the Committee on Foreign Relations of
the Senate.

SEC. 8. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT AS
GLOBAL LEADER AND COORDINATOR OF BILATERAL AND
MULTILATERAL MICROENTERPRISE ASSISTANCE
ACTIVITIES.

(a) Findings and Policy.--The Congress finds and declares
that--
(1) the United States can provide leadership to other
bilateral and multilateral development agencies as such
agencies expand their support to the microenterprise sector;
and
(2) the United States should seek to improve coordination
among G-7 countries in the support of the microenterprise
sector in order to leverage the investment of the United
States with that of other donor nations.
(b) Sense of the Congress.--It is the sense of the Congress
that--
(1) the Administrator of the United States Agency for
International Development and the Secretary of State should
seek to support and strengthen the effectiveness of
microfinance activities in United Nations agencies, such as
the International Fund for Agricultural Development (IFAD)
and the United Nations Development Program (UNDP), which have
provided key leadership in developing the microenterprise
sector; and
(2) the Secretary of the Treasury should instruct each
United States Executive Director of the Multilateral
Development Banks (MDBs) to advocate the development of a
coherent and coordinated strategy to support the
microenterprise sector and an increase of multilateral
resource flows for the purposes of building microenterprise
retail and wholesale intermediaries.

The CHAIRMAN. Are there any amendments?

Amendment Offered By Mr. Smith of New Jersey

Mr. SMITH of New Jersey. Mr. Chairman, I offer an amendment.
The Clerk read as follows:

Amendment offered by Mr. Smith of New Jersey:
Page 3, beginning on line 22, strike ``While this scale''
and all that follows through line 25.
Page 17, line 15, strike ``part 1'' and insert ``part I''.
Page 19, line 2, strike ``, and'' and insert ``, or''.
Page 19, after line 16, insert the following:
``(d) General Provisions.--
``(1) Policy provisions.--In providing the credit
assistance authorized by this section, the board should
apply, as appropriate, the policy provisions in this part
applicable to development assistance activities.
``(2) Default and procurement provisions.--
``(A) Default provision.--The provisions of section 620(q)
of this Act, or any comparable provisions of law, shall not
be construed to prohibit assistance to a country in the event
that a private sector recipient of assistance furnished under
this section is in default in its payment to the United
States for the period specified in such section.
``(B) Procurement provision.--Assistance may be provided
under this section without regard to section 604(a) of this
Act.
``(3) Terms and conditions of credit assistance.--(A)
Credit assistance provided under this section shall be
offered on such terms and conditions, including fees charged,
as the board may determine.
``(B) The principal amount of loans made or guaranteed
under this section in any fiscal year, with respect to any
single borrower, may not exceed $30,000,000.
``(C) No payment may be made under any guarantee issued
under this section for any loss arising out of fraud or
misrepresentation for which the party seeking payment is
responsible.
``(4) Full faith and credit.--All guarantees issued under
this section shall constitute obligations, in accordance with
the terms of such guarantees, of the United States of America
and the full faith and credit of the United States of America
is hereby pledged for the full payment and performance of
such obligations to the extent of the guarantee.
Page 19, line 17, strike ``(d)'' and insert ``(e)''.
Page 19, strike line 23 and all that follows through line 5
on page 20 and insert the following:
``(f) Funding.--(1)(A) Of the amounts made available to
carry out this part for each of the fiscal years 2000 and
2001, up to $5,000,000 may be made available for--
``(i) the subsidy cost, as defined in section 502(5) of the
Federal Credit Reform Act of 1990, to carry out this section;
and
``(ii) subject to subparagraph (B), the cost of
administrative expenses to carry out this section.
``(B) Of the amount made available under subparagraph (A)
to carry out this section for a fiscal year, not more than
$500,000 may be made available for administrative expenses
under subparagraph (A)(ii).
``(2) Amounts made available under paragraph (1) are in
addition to amounts available under any other provision of
law to carry out this section.
Page 20, line 6, strike ``(f)'' and insert ``(g)''.
Page 20, line 16, strike ``and each'' and insert ``or
any''.

Mr. SMITH of New Jersey (during the reading). Mr. Chairman, I ask
unanimous consent that the amendment be considered as read and printed
in the Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
New Jersey?
There was no objection.
Mr. SMITH of New Jersey. Mr. Chairman, this is an amendment that was
crafted in conjunction with the gentleman from Connecticut (Mr.
Gejdenson) and the administration to fund the microfinance loan
facility.
The amendment provides that up to $5 million may be used to leverage
up to $30 million to rescue a U.S.-supported microenterprise
institution whose financial situation has been undermined by natural
catastrophes or other events out of the control of that institution.
We have seen key microfinance institutions undermined in Bangladesh
and Central America where it is hard to run a bank after all your
clients have been killed or made homeless by a flood or by a hurricane.
With the ad hoc rescue packages we have assembled in the past, we have
been able to not only prevent the collapse of U.S.-backed microfinance
institutions, but to turn them into lending agents of the recovery
process, especially in Honduras.
This amendment would help create a microfinance loan facility to
ensure that we no longer have to put together ad hoc packages to rescue
such institutions. I think it is a good amendment, and I hope it has
the full support of the Chamber.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from New Jersey (Mr. Smith).
The amendment was agreed to.
The CHAIRMAN. Are there other amendments?
If not, under the rule, the Committee rises.

{time} 1245

Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Lewis of Kentucky) having assumed the chair, Mr. Ewing, Chairman of the
Committee of the Whole House on the State of the Union, reported that
that Committee, having had under consideration the bill (H.R. 1143) to
establish a program to provide assistance for programs of credit and
other financial services for microenterprises in developing countries,
and for other purposes, pursuant to House Resolution

[[Page H1896]]

136, he reported the bill back to the House with an amendment adopted
by the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
The question is on the amendment.
The amendment was agreed to.
The bill was ordered to be engrossed and read a third time, and was
read the third time, and passed, and a motion to reconsider was laid on
the table.

____________________