Women’s Entrepreneurship and Economic Empowerment Act of 2018

132 STAT. 5510 PUBLIC LAW 115–428—JAN. 9, 2019 to their ability to thrive as economic actors across the lifecycle, including— (A) living lives free of violence and exploitation; (B) achieving the highest possible standard of health and well-being; (C) enjoying full legal and human rights, such as access to registration, identification, and citizenship documents; (D) benefitting from formal and informal education; (E) equal protection of and access to land and property rights; (F) access to fundamental labor rights; (G) policies to address disproportionate care burdens; and (H) business and management skills and leadership opportunities. (7) Discriminatory legal and regulatory systems and banking practices are obstacles to women’s access to capital and assets, including land, machinery, production facilities, technology, and human resources. These barriers are often connected to a woman’s marital status, which can determine whether she is able to inherit land or own property in her name. These constraints contribute to women frequently run- ning smaller businesses, with fewer employees and lower asset values. (8) Savings groups primarily comprised of women are recog- nized as a vital entry point, especially for poor and very poor women, to formal financial services. There is a high demand for such groups to protect and grow the savings of women with formal financial institutions. (9) Evidence shows that, once a saving group is linked to a bank, the average savings per member increases between 40 to 100 percent and the average profit per member doubles. Investing in financial literacy, business leadership training, and mentorship are key elements to these outcomes. (10) United States support for microenterprise and micro- finance development programs, which seek to reduce poverty in low-income countries by giving small loans to small-scale entrepreneurs without collateral, have been a useful mechanism to help families weather economic shocks, but many microcredit borrowers largely remain in poverty. (11) The vast majority of microcredit borrowers are women who would like to move up the economic ladder, but are held back by binding constraints that create a missing middle – large numbers of microenterprises, a handful of large firms or conglomerates, and very few small and medium-sized enter- prises in between, which are critical to driving economic growth in developing countries. (12) According to the World Bank, small and medium- sized enterprises create 4 out of 5 new positions in emerging markets, but approximately 50 percent of formal small and medium-sized enterprises lack access to formal credit. The financing gap is even larger when micro and informal enter- prises are taken into account. Overall, approximately 70 percent dkrause on DSKBC28HB2PROD with PUBLAWS of all micro, small, and medium-sized enterprises in emerging markets lack access to credit. VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428 PUBLIC LAW 115–428—JAN. 9, 2019 132 STAT. 5511 SEC. 3. ACTIONS TO IMPROVE THE INTERNATIONAL GENDER POLICY 22 USC 2151–2. OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT. (a) GENDER ANALYSIS DEFINED.—In this section, the term ‘‘gender analysis’’— (1) means a socioeconomic analysis of available or gathered quantitative and qualitative information to identify, under- stand, and explain gaps between men and women which typi- cally involves examining— (A) differences in the status of women and men and their differential access to and control over assets, resources, education, opportunities, and services; (B) the influence of gender roles, structural barriers, and norms on the division of time between paid employ- ment, unpaid work (including the subsistence production and care for family members), and volunteer activities; (C) the influence of gender roles, structural barriers, and norms on leadership roles and decision making; con- straints, opportunities, and entry points for narrowing gender gaps and empowering women; and (D) potential differential impacts of development poli- cies and programs on men and women, including unin- tended or negative consequences; and (2) includes conclusions and recommendations to enable development policies and programs to narrow gender gaps and improve the lives of women and girls. (b) INTERNATIONAL DEVELOPMENT COOPERATION POLICY.—It shall be the international development cooperation policy of the United States— (1) to reduce gender disparities with respect to economic, social, political, educational, and cultural resources, wealth, opportunities, and services; (2) to strive to eliminate gender-based violence and mitigate its harmful effects on individuals and communities including through efforts to develop standards and capacity to reduce gender-based violence in the workplace and other places where women work; (3) to support activities that secure private property rights and land tenure for women in developing countries, including— (A) legal frameworks that give women equal rights to own, register, use, profit from, and inherit land and property; (B) improving legal literacy to enable women to exer- cise the rights described in subparagraph (A); and (C) improving the capacity of law enforcement and community leaders to enforce such rights; (4) to increase the capability of women and girls to fully exercise their rights, determine their life outcomes, assume leadership roles, and influence decision-making in households, communities, and societies; and (5) to improve the access of women and girls to education, particularly higher education opportunities in business, finance, and management, in order to enhance financial literacy and business development, management, and strategy skills. (c) ACTIONS.—In order to advance the policy described in sub- dkrause on DSKBC28HB2PROD with PUBLAWS section (b), the Administrator of the United States Agency for International Development shall ensure that— VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428

132 STAT. 5512 PUBLIC LAW 115–428—JAN. 9, 2019 (1) strategies, projects, and activities of the Agency are shaped by a gender analysis; (2) standard indicators are used to assess such strategies, projects, and activities, if applicable; and (3) gender equality and female empowerment are integrated throughout the Agency’s program cycle and related processes for purposes of strategic planning, project design and implementation, monitoring, and evaluation. SEC. 4. DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM- SIZED ENTERPRISES. (a) FINDINGS AND POLICY.—Section 251 of the Foreign Assist- ance Act of 1961 (22 U.S.C. 2211) is amended— (1) in paragraph (1)— (A) by striking ‘‘microenterprise’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; (B) by striking ‘‘and in the development’’ and inserting ‘‘, in the development’’; and (C) by inserting ‘‘, and in the economic empowerment of the poor, especially women’’ before the period at the end; (2) in paragraph (2)— (A) by striking ‘‘microenterprise’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; and (B) by inserting ‘‘, particularly enterprises owned, man- aged, and controlled by women’’ before the period at the end; (3) in paragraph (3), by striking ‘‘microenterprises’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; (4) in paragraph (4), by striking ‘‘microenterprise’’ and inserting ‘‘micro, small, and medium-sized enterprise’’; (5) in paragraph (5)— (A) by striking ‘‘should continue’’ and inserting ‘‘should continue and be expanded’’; and (B) by striking ‘‘microenterprise and microfinance development assistance’’ and inserting ‘‘development assist- ance for micro, small, and medium-sized enterprises’’; and (6) in paragraph (6)— (A) by striking ‘‘have been successful’’ and inserting ‘‘have had some success’’; (B) by striking ‘‘microenterprise programs should’’ and inserting ‘‘development assistance for micro, small, and medium-sized enterprises should’’; and (C) by striking ‘‘, such as countries in Latin America’’. (b) AUTHORIZATION; IMPLEMENTATION; TARGETED ASSISTANCE.— Section 252 of the Foreign Assistance Act of 1961 (22 U.S.C. 2211a) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by striking ‘‘credit, savings, and other services to microfinance and microenterprise clients’’ and inserting ‘‘credit, including the use of innovative credit scoring models, savings, financial technology, financial literacy, education, insurance, prop- erty rights, and other services to micro, small, and medium- sized enterprise clients’’; dkrause on DSKBC28HB2PROD with PUBLAWS (B) in paragraph (1), by striking ‘‘microfinance and microenterprise clients’’ and inserting ‘‘micro, small, and VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00004 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428 PUBLIC LAW 115–428—JAN. 9, 2019 132 STAT. 5513 medium-sized enterprise clients, particularly clients owned, managed, and controlled by women’’; (C) in paragraph (2), by striking ‘‘microenterprises’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; (D) in paragraph (3)— (i) by striking ‘‘microfinance and microenterprise institutions’’ and inserting ‘‘financial intermediaries’’; (ii) by striking ‘‘microfinance and microenterprise clients’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; and (iii) by striking ‘‘and’’ at the end; (E) in paragraph (4)— (i) by striking ‘‘microfinance and microenterprise clients and institutions’’ and inserting ‘‘micro, small, and medium-sized enterprises, financial inter- mediaries, and capital markets’’; and (ii) by striking ‘‘the poor and very poor.’’ and inserting ‘‘the poor and very poor, especially women;’’; and (F) by adding at the end the following: ‘‘(5) assistance for the purpose of promoting the economic empowerment of women, including through increased access to financial resources and improving property rights, inherit- ance rights, and other legal protections; and ‘‘(6) assistance for the purpose of scaling up evidence-based graduation approaches, which include targeting the very poor and households in ultra-poverty, consumption support, pro- motion of savings, financial literacy, skills training, and asset transfers.’’; (2) in subsection (b)— (A) by amending paragraph (1) to read as follows: ‘‘(1) IN GENERAL.—There is authorized to be established within the Agency an office to support the Agency’s efforts to broaden and deepen local financial markets, expand access to appropriate financial products and services, and support the development of micro, small and medium-sized enterprises. The Office shall be headed by a Director who shall possess technical expertise and ability to offer leadership in the field of financial sector development.’’; (B) in paragraph (2)— (i) by amending subparagraph (B) to read as fol- lows: ‘‘(B) USE OF CENTRAL FUNDING MECHANISMS.—In order Coordination. to ensure that assistance under this title is distributed effectively and efficiently, the office shall provide coordina- tion and support for field-implemented programs, including through targeted core support for micro, small, and medium-sized enterprises and local financial markets.’’; and (ii) in subparagraph (C), in the matter preceding clause (i)— (I) by inserting ‘‘, particularly by protecting the use and funding of local organizations in coun- tries in which the Agency invests,’’ after ‘‘and sustainability’’; and (II) by inserting ‘‘, especially women’’ after dkrause on DSKBC28HB2PROD with PUBLAWS ‘‘the poor and very poor’’; and (C) by striking paragraph (3); and VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428

132 STAT. 5514 PUBLIC LAW 115–428—JAN. 9, 2019 (3) in subsection (c), by striking ‘‘subsection (a), 50 percent of all microenterprise resources’’ and all that follows and inserting the following: ‘‘subsection (a)— ‘‘(1) 50 percent of all micro, small, and medium-sized enter- prise resources shall be targeted to activities that reach the very poor; and ‘‘(2) 50 percent of all small and medium-sized enterprise resources shall be targeted to activities that reach enterprises owned, managed, and controlled by women.’’. (c) MONITORING SYSTEM.—Section 253(b) of the Foreign Assist- ance Act of 1961 (22 U.S.C. 2211b(b)) is amended— (1) in paragraph (1), by inserting ‘‘, including goals on a gender disaggregated basis, such as improvements in employ- ment, access to financial services, education, enterprise develop- ment, earnings and control over income, and property and land rights,’’ after ‘‘performance goals’’; (2) in paragraph (2), by striking ‘‘include performance indicators to be used in measuring or assessing the achieve- ment’’ and inserting ‘‘incorporate Agency planning and reporting processes and indicators to measure or assess the achievement’’; and (3) by striking paragraph (4). (d) POVERTY MEASUREMENT METHODS.—Section 254 of the For- eign Assistance Act of 1961 (22 U.S.C. 2211c) is amended to read as follows: ‘‘SEC. 254. POVERTY MEASUREMENT METHODS. Consultation. ‘‘The Administrator of the Agency, in consultation with financial intermediaries and other appropriate organizations, should have in place at least 1 method for implementing partners to use to assess poverty levels of their current incoming or prospective cli- ents.’’. (e) ADDITIONAL AUTHORITIES.—Section 255 of the Foreign Assistance Act of 1961 (22 U.S.C. 2211d) is amended— (1) by striking ‘‘assistance for microenterprise development assistance’’ and inserting ‘‘development assistance for micro, small, and medium-sized enterprises’’; and (2) by striking ‘‘and, to the extent applicable’’ and all that follows and inserting a period. (f) MICROENTERPRISE DEVELOPMENT CREDITS.—Section 256 of the Foreign Assistance Act of 1961 (22 U.S.C. 2212) is amended— (1) in the section heading, by striking ‘‘MICROENTERPRISE DEVELOPMENT CREDITS’’ and inserting ‘‘DEVELOPMENT CREDITS FOR MICRO, SMALL, AND MEDIUM-SIZED ENTER- PRISES’’; (2) in subsection (a)— (A) in paragraph (1), by striking ‘‘micro- and small enterprises’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; and (B) in paragraph (2), by striking ‘‘microenterprises’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; (3) in subsection (b)— (A) in the matter preceding paragraph (1), by striking ‘‘microenterprise households lacking full access to credit’’ and inserting ‘‘micro, small, and medium-sized enterprises dkrause on DSKBC28HB2PROD with PUBLAWS and households lacking full access to credit and other finan- cial services’’; and VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00006 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428 PUBLIC LAW 115–428—JAN. 9, 2019 132 STAT. 5515 (B) in paragraphs (1) and (2), by striking ‘‘microfinance institutions’’ each place such term appears and inserting ‘‘financial intermediaries’’; (4) in subsection (c), in the matter preceding paragraph (1), by striking ‘‘microfinance institutions’’ and inserting ‘‘finan- cial intermediaries’’; and (5) in subsections (c) and (d), by striking ‘‘microenterprise households’’ each place such term appears and inserting ‘‘micro, small, and medium-sized enterprises and households’’. (g) UNITED STATES MICROFINANCE LOAN FACILITY.—Section 257 of the Foreign Assistance Act of 1961 (22 U.S.C. 2213) is amended— (1) in subsection (a)— (A) by striking ‘‘Administrator’’ and inserting ‘‘Presi- dent’’; (B) by striking ‘‘United States-supported microfinance institutions’’ and inserting ‘‘United States-supported finan- cial intermediaries’’; and (2) in subsection (b)— (A) in paragraph (1), by striking ‘‘United States-sup- ported microfinance institutions’’ each place such term appears and inserting ‘‘United States-supported financial intermediaries’’; and (B) in paragraph (2), by striking ‘‘microfinance institu- tions’’ and inserting ‘‘financial intermediaries’’. (h) CONTENTS OF REPORT.—Section 258(b) of the Foreign Assist- ance Act of 1961 (22 U.S.C. 2214(b)) is amended to read as follows: ‘‘(b) CONTENTS.—To the extent practicable, the report submitted under subsection (a) should contain the following: ‘‘(1) Information about assistance provided under section 252, including— ‘‘(A) the amount of each grant or other form of assist- ance; ‘‘(B) the name and type of each intermediary and imple- menting partner organization receiving assistance; ‘‘(C) the name of each country receiving assistance; and ‘‘(D) the methodology used to ensure compliance with the targeted assistance requirements under subsection (c) of such section. ‘‘(2) The percentage of assistance provided under section 252, disaggregated by income level, including for the very poor, and by gender. ‘‘(3) The estimated number of individuals that received assistance under section 252, disaggregated by income level (or an appropriate proxy for income level, including for the very poor), by gender, and by type of assistance. ‘‘(4) The results of the monitoring system required under section 253. ‘‘(5) Information about any method in place to assess pov- erty levels under section 254.’’. (i) DEFINITIONS.—Section 259 of the Foreign Assistance Act of 1961 (22 U.S.C. 2214a) is amended— (1) in paragraph (3), by striking ‘‘Committee on Inter- national Relations of the House of Representatives’’ and dkrause on DSKBC28HB2PROD with PUBLAWS inserting ‘‘Committee on Foreign Affairs of the House of Rep- resentatives’’; VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00007 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428

132 STAT. 5516 PUBLIC LAW 115–428—JAN. 9, 2019 (2) in paragraph (4), by striking ‘‘microenterprises’’ and inserting ‘‘micro, small, and medium-sized enterprises’’; (3) in paragraph (6)— (A) in subparagraph (E), by striking ‘‘microenterprise institution’’ and inserting ‘‘micro, small, or medium-sized enterprise institution’’; and (B) in subparagraph (F), by striking ‘‘microfinance institution’’ and inserting ‘‘financial intermediary’’; (4) by striking paragraphs (7) and (8) and inserting the following: ‘‘(7) MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE INSTITU- TION.—The term ‘micro, small, and medium-sized enterprise institution’ means an entity that provides services, including finance, training, or business development services, for micro, small, and medium-sized enterprises in foreign countries. ‘‘(8) FINANCIAL INTERMEDIARY.—The term ‘financial inter- mediary’ means the entity that acts as the intermediary between parties in a financial transaction, such as a bank, credit union, investment fund, a village savings and loan group, or an institution that provides financial services to a micro, small, or medium-sized enterprise.’’; (5) by striking paragraph (9); (6) by redesignating paragraphs (10) through (14) as para- graphs (9) through (13), respectively; (7) in paragraph (9), as redesignated, by striking ‘‘of micro- enterprise development’’; (8) by amending paragraph (10), as redesignated, to read as follows: ‘‘(10) PRACTITIONER INSTITUTION.—The term ‘practitioner institution’ means a not-for-profit entity, a financial inter- mediary, an information and communications technology firm with a mobile money platform, a village and savings loan group, or any other entity that provides financial or business development services authorized under section 252 that benefits micro, small, and medium-sized enterprise clients.’’; (9) in paragraph (12), as redesignated— (A) in the paragraph heading, by striking ‘‘UNITED STATES-SUPPORTED MICROFINANCE INSTITUTION’’ and inserting ‘‘UNITED STATES-SUPPORTED FINANCIAL INTER- MEDIARY’’; and (B) by striking ‘‘United States-supported microfinance institution’’ and inserting ‘‘United States-supported finan- cial intermediary’’; and (10) in paragraph (13), as redesignated, by amending subparagraph (B) to read as follows: ‘‘(B) living below the international poverty line (as defined by the International Bank for Reconstruction and Development and the International Development Associa- tion (collectively referred to as the ‘World Bank’)).’’. (j) TECHNICAL AND CONFORMING AMENDMENT.—Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2211 et seq.) is amended in the title heading by striking ‘‘MICROENTERPRISE DEVELOPMENT ASSISTANCE’’ and dkrause on DSKBC28HB2PROD with PUBLAWS inserting ‘‘DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES’’. VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00008 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428 PUBLIC LAW 115–428—JAN. 9, 2019 132 STAT. 5517 SEC. 5. REPORT AND BRIEFING BY THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT. (a) IN GENERAL.—Not later than 1 year after the date of the enactment of this Act, the Administrator of the United States Agency for International Development shall provide a briefing and submit a report to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate regarding the implementation of this Act and the amend- ments made by this Act, including actions to improve the gender policies of the United States Agency for International Development pursuant to section 3. (b) PUBLIC AVAILABILITY.—The report required under sub- section (a) shall be posted and made available on a text-based, searchable, and publicly-available internet website. SEC. 6. REPORT BY THE COMPTROLLER GENERAL OF THE UNITED STATES. (a) IN GENERAL.—Not later than 2 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate regarding development assistance for micro, small, and medium-sized enterprises administered by the United States Agency for International Development. (b) MATTERS TO BE INCLUDED.—The report required under sub- Assessment. section (a) shall include an assessment of the following: (1) What is known about the impact of such development assistance on the economies of developing countries. (2) The extent to which such development assistance is targeting women and the very poor, including what is known about how such development assistance benefits women. (3) The extent to which the United States Agency for Inter- national Development has developed a methodology to ensure compliance with the targeted assistance requirement under section 252(c) of the Foreign Assistance Act of 1961, as amended by section 4(b)(3), and the quality of such methodology. (4) The monitoring system required under section 253(b) of the Foreign Assistance Act of 1961, as amended by section dkrause on DSKBC28HB2PROD with PUBLAWS VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00009 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL428.115 PUBL428

132 STAT. 5518 PUBLIC LAW 115–428—JAN. 9, 2019 4(c), including the quality, appropriateness, and feasibility of such monitoring system. Approved January 9, 2019. LEGISLATIVE HISTORY—S. 3247 (H.R. 5480): HOUSE REPORTS: No. 115–718 (Comm. on Foreign Affairs) accompanying H.R. 5480. CONGRESSIONAL RECORD, Vol. 164 (2018): Dec. 19, considered and passed Senate. Dec. 21, considered and passed House. dkrause on DSKBC28HB2PROD with PUBLAWS Æ VerDate Sep 11 2014 08:51 Aug 28, 2019 Jkt 089139 PO 00428 Frm 00010 Fmt 6580 Sfmt 6580 E:\PUBLAW\PUBL428.115 PUBL428