#aaeth ,,congress #b;d ,session ,s4 #cbdg ,,an ,,act ,to improve programs and activities relating to women's entrepreneurship and economic empowerment that are carried out by the ,united ,states ,agency for ,international ,development1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,women's ,entrepreneurship and ,economic ,empowerment ,act of #bjah4 #b4 ,findings ,congress finds the following3 7#a7 ,because women make up the majority of the world's poor and gender inequalities prevail in incomes1 wages1 access to finance1 ownership of assets1 and control over the allocation of resources1 women's entrepreneurship and economic empowerment is important to achieve inclusive economic growth at all levels of society4 7#b7 ,research shows that when women exert greater influence over household finances1 economic outcomes for families improve1 and childhood survival rates1 food security1 and educational attainment increase4 ,women also tend to place a greater emphasis on household savings which improves family financial resiliency4 7#c7 ,a #bjaf report by the ,mc,kinsey ,global ,institute estimated that achieving global gender parity in economic activity could add as much as #bh1jjj1jjj1jjj1jjj to annual global gross domestic product by #bjbe4 7#d7 ,lack of access to financial services that address gender-specific constraints impedes women's economic inclusion4 ,roughly #a1jjj1jjj1jjj women around the world are currently left out of the formal financial system1 which causes many women to rely on informal means of saving and borrowing that are riskier and less reliable4 7#e7 ,among other consequences1 this lack of access hampers the success of women entrepreneurs1 including women who are seeking to run or grow small and medium-sized enterprises4 ,the ,international ,finance ,corporation has estimated that #gj percent of women-owned small and medium-sized enterprises in the formal sector are unserved or underserved in terms of access to financial services1 resulting in a financing gap of #cjj1jjj1jjj1jjj for women-owned small businesses4 7#f7 ,women's economic empowerment is inextricably linked to a myriad of other women's human rights that are essential to their ability to thrive as economic actors across the lifecycle1 including-- 7,a7 living lives free of violence and exploitation2 7,b7 achieving the highest possible standard of health and well-being2 7,c7 enjoying full legal and human rights1 such as access to registration1 identification1 and citizenship documents2 7,d7 benefitting from formal and informal education2 7,e7 equal protection of and access to land and property rights2 7,f7 access to fundamental labor rights2 7,g7 policies to address disproportionate care burdens2 and 7,h7 business and management skills and leadership opportunities4 7#g7 ,discriminatory legal and regulatory systems and banking practices are obstacles to women's access to capital and assets1 including land1 machinery1 production facilities1 technology1 and human resources4 ,these barriers are often connected to a woman's marital status1 which can determine whether she is able to inherit land or own property in her name4 ,these constraints contribute to women frequently running smaller businesses1 with fewer employees and lower asset values4 7#h7 ,savings groups primarily comprised of women are recognized as a vital entry point1 especially for poor and very poor women1 to formal financial services4 ,there is a high demand for such groups to protect and grow the savings of women with formal financial institutions4 7#i7 ,evidence shows that1 once a saving group is linked to a bank1 the average savings per member increases between #dj to #ajj percent and the average profit per member doubles4 ,investing in financial literacy1 business leadership training1 and mentorship are key elements to these outcomes4 7#aj7 ,united ,states support for microenterprise and microfinance development programs1 which seek to reduce poverty in low-income countries by giving small loans to small-scale entrepreneurs without collateral1 have been a useful mechanism to help families weather economic shocks1 but many microcredit borrowers largely remain in poverty4 7#aa7 ,the vast majority of microcredit borrowers are women who would like to move up the economic ladder1 but are held back by binding constraints that create a missing middle - large numbers of microenterprises1 a handful of large firms or conglomerates1 and very few small and medium-sized enterprises in between1 which are critical to driving economic growth in developing countries4 7#ab7 ,according to the ,world ,bank1 small and medium-sized enterprises create #d out of #e new positions in emerging markets1 but approximately #ej percent of formal small and medium-sized enterprises lack access to formal credit4 ,the financing gap is even larger when micro and informal enterprises are taken into account4 ,overall1 approximately #gj percent of all micro1 small1 and medium-sized enterprises in emerging markets lack access to credit4 #c4 ,actions to improve the international gender policy of the ,united ,states ,agency for ,international ,development 7a7 ,gender analysis defined ,in this section1 the term gender analysis-- 7#a7 means a socioeconomic analysis of available or gathered quantitative and qualitative information to identify1 understand1 and explain gaps between men and women which typically involves examining-- 7,a7 differences in the status of women and men and their differential access to and control over assets1 resources1 education1 opportunities1 and services2 7,b7 the influence of gender roles1 structural barriers1 and norms on the division of time between paid employment1 unpaid work 7including the subsistence production and care for family members71 and volunteer activities2 7,c7 the influence of gender roles1 structural barriers1 and norms on leadership roles and decision making2 constraints1 opportunities1 and entry points for narrowing gender gaps and empowering women2 and 7,d7 potential differential impacts of development policies and programs on men and women1 including unintended or negative consequences2 and 7#b7 includes conclusions and recommendations to enable development policies and programs to narrow gender gaps and improve the lives of women and girls4 7b7 ,international development cooperation policy ,it shall be the international development cooperation policy of the ,united ,states-- 7#a7 to reduce gender disparities with respect to economic1 social1 political1 educational1 and cultural resources1 wealth1 opportunities1 and services2 7#b7 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 work2 7#c7 to support activities that secure private property rights and land tenure for women in developing countries1 including-- 7,a7 legal frameworks that give women equal rights to own1 register1 use1 profit from1 and inherit land and property2 7,b7 improving legal literacy to enable women to exercise the rights described in subparagraph 7,a72 and 7,c7 improving the capacity of law enforcement and community leaders to enforce such rights2 7#d7 to increase the capability of women and girls to fully exercise their rights1 determine their life outcomes1 assume leadership roles1 and influence decision-making in households1 communities1 and societies2 and 7#e7 to improve the access of women and girls to education1 particularly higher education opportunities in business1 finance1 and management1 in order to enhance financial literacy and business development1 management1 and strategy skills4 7c7 ,actions ,in order to advance the policy described in subsection 7b71 the ,administrator of the ,united ,states ,agency for ,international ,development shall ensure that-- 7#a7 strategies1 projects1 and activities of the ,agency are shaped by a gender analysis2 7#b7 standard indicators are used to assess such strategies1 projects1 and activities1 if applicable2 and 7#c7 gender equality and female empowerment are integrated throughout the ,agency's program cycle and related processes for purposes of strategic planning1 project design and implementation1 monitoring1 and evaluation4 #d4 ,development assistance for micro1 small1 and medium-sized enterprises 7a7 ,findings and policy ,section #bea of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbaa7 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 by striking microenterprise and inserting micro1 small1 and medium-sized enterprises2 7,b7 by striking and in the development and inserting 1 in the development2 and 7,c7 by inserting 1 and in the economic empowerment of the poor1 especially women before the period at the end2 7#b7 in paragraph 7#b7-- 7,a7 by striking microenterprise and inserting micro1 small1 and medium-sized enterprises2 and 7,b7 by inserting 1 particularly enterprises owned1 managed1 and controlled by women before the period at the end2 7#c7 in paragraph 7#c71 by striking microenterprises and inserting micro1 small1 and medium-sized enterprises2 7#d7 in paragraph 7#d71 by striking microenterprise and inserting micro1 small1 and medium-sized enterprise2 7#e7 in paragraph 7#e7-- 7,a7 by striking should continue and inserting should continue and be expanded2 and 7,b7 by striking microenterprise and microfinance development assistance and inserting development assistance for micro1 small1 and medium-sized enterprises2 and 7#f7 in paragraph 7#f7-- 7,a7 by striking have been successful and inserting have had some success2 7,b7 by striking microenterprise programs should and inserting development assistance for micro1 small1 and medium-sized enterprises should2 and 7,c7 by striking 1 such as countries in ,latin ,america4 7b7 ,authorization2 implementation2 targeted assistance ,section #beb of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbaa;a7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking credit1 savings1 and other services to microfinance and microenterprise clients and inserting credit1 including the use of innovative credit scoring models1 savings1 financial technology1 financial literacy1 education1 insurance1 property rights1 and other services to micro1 small1 and medium-sized enterprise clients2 7,b7 in paragraph 7#a71 by striking microfinance and microenterprise clients and inserting micro1 small1 and medium-sized enterprise clients1 particularly clients owned1 managed1 and controlled by women2 7,c7 in paragraph 7#b71 by striking microenterprises and inserting micro1 small1 and medium-sized enterprises2 7,d7 in paragraph 7#c7-- 7i7 by striking microfinance and microenterprise institutions and inserting financial intermediaries2 7ii7 by striking microfinance and microenterprise clients and inserting micro1 small1 and medium-sized enterprises2 and 7iii7 by striking and at the end2 7,e7 in paragraph 7#d7-- 7i7 by striking microfinance and microenterprise clients and institutions and inserting micro1 small1 and medium-sized enterprises1 financial intermediaries1 and capital markets2 and 7ii7 by striking the poor and very poor4 and inserting the poor and very poor1 especially women22 and 7,f7 by adding at the end the following3 7#e7 assistance for the purpose of promoting the economic empowerment of women1 including through increased access to financial resources and improving property rights1 inheritance rights1 and other legal protections2 and 7#f7 assistance for the purpose of scaling up evidence-based graduation approaches1 which include targeting the very poor and households in ultra-poverty1 consumption support1 promotion of savings1 financial literacy1 skills training1 and asset transfers4 2 7#b7 in subsection 7b7-- 7,a7 by amending paragraph 7#a7 to read as follows3 7#a7 ,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 markets1 expand access to appropriate financial products and services1 and support the development of micro1 small and medium-sized enterprises4 ,the ,office shall be headed by a ,director who shall possess technical expertise and ability to offer leadership in the field of financial sector development4 2 7,b7 in paragraph 7#b7-- 7i7 by amending subparagraph 7,b7 to read as follows3 7,b7 ,use of central funding mechanisms ,in order to ensure that assistance under this title is distributed effectively and efficiently1 the office shall provide coordination and support for field-implemented programs1 including through targeted core support for micro1 small1 and medium-sized enterprises and local financial markets4 2 and 7ii7 in subparagraph 7,c71 in the matter preceding clause 7i7-- 7,i7 by inserting 1 particularly by protecting the use and funding of local organizations in countries in which the ,agency invests1 after and sustainability2 and 7,,ii7 by inserting 1 especially women after the poor and very poor2 and 7,c7 by striking paragraph 7#c72 and 7#c7 in subsection 7c71 by striking subsection 7a71 #ej percent of all microenterprise resources and all that follows and inserting the following3 8subsection 7a7-- 7#a7 #ej percent of all micro1 small1 and medium-sized enterprise resources shall be targeted to activities that reach the very poor2 and 7#b7 #ej percent of all small and medium-sized enterprise resources shall be targeted to activities that reach enterprises owned1 managed1 and controlled by women4 4 7c7 ,monitoring system ,section #bec7;b7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbaa;b7b77 is amended-- 7#a7 in paragraph 7#a71 by inserting 1 including goals on a gender disaggregated basis1 such as improvements in employment1 access to financial services1 education1 enterprise development1 earnings and control over income1 and property and land rights1 after performance goals2 7#b7 in paragraph 7#b71 by striking include performance indicators to be used in measuring or assessing the achievement and inserting incorporate ,agency planning and reporting processes and indicators to measure or assess the achievement2 and 7#c7 by striking paragraph 7#d74 7d7 ,poverty measurement methods ,section #bed of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbaa;c7 is amended to read as follows3 #bed4 ,poverty measurement methods ,the ,administrator of the ,agency1 in consultation with financial intermediaries and other appropriate organizations1 should have in place at least #a method for implementing partners to use to assess poverty levels of their current incoming or prospective clients4 4 7e7 ,additional authorities ,section #bee of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbaa;d7 is amended-- 7#a7 by striking assistance for microenterprise development assistance and inserting development assistance for micro1 small1 and medium-sized enterprises2 and 7#b7 by striking and1 to the extent applicable and all that follows and inserting a period4 7f7 ,microenterprise development credits ,section #bef of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbab7 is amended-- 7#a7 in the section heading1 by striking ,microenterprise development credits and inserting ,development credits for micro1 small1 and medium-sized enterprises2 7#b7 in subsection 7a7-- 7,a7 in paragraph 7#a71 by striking micro- and small enterprises and inserting micro1 small1 and medium-sized enterprises2 and 7,b7 in paragraph 7#b71 by striking microenterprises and inserting micro1 small1 and medium-sized enterprises2 7#c7 in subsection 7b7-- 7,a7 in the matter preceding paragraph 7#a71 by striking microenterprise households lacking full access to credit and inserting micro1 small1 and medium-sized enterprises and households lacking full access to credit and other financial services2 and 7,b7 in paragraphs 7#a7 and 7#b71 by striking microfinance institutions each place such term appears and inserting financial intermediaries2 7#d7 in subsection 7c71 in the matter preceding paragraph 7#a71 by striking microfinance institutions and inserting financial intermediaries2 and 7#e7 in subsections 7c7 and 7d71 by striking microenterprise households each place such term appears and inserting micro1 small1 and medium-sized enterprises and households4 7g7 ,united ,states microfinance loan facility ,section #beg of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbac7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking ,administrator and inserting ,president2 7,b7 by striking ,united ,states-supported microfinance institutions and inserting ,united ,states-supported financial intermediaries2 and 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#a71 by striking ,united ,states-supported microfinance institutions each place such term appears and inserting ,united ,states-supported financial intermediaries2 and 7,b7 in paragraph 7#b71 by striking microfinance institutions and inserting financial intermediaries4 7h7 ,contents of report ,section #beh7;b7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbad7;b77 is amended to read as follows3 7b7 ,contents ,to the extent practicable1 the report submitted under subsection 7a7 should contain the following3 7#a7 ,information about assistance provided under section #beb1 including-- 7,a7 the amount of each grant or other form of assistance2 7,b7 the name and type of each intermediary and implementing partner organization receiving assistance2 7,c7 the name of each country receiving assistance2 and 7,d7 the methodology used to ensure compliance with the targeted assistance requirements under subsection 7c7 of such section4 7#b7 ,the percentage of assistance provided under section #beb1 disaggregated by income level1 including for the very poor1 and by gender4 7#c7 ,the estimated number of individuals that received assistance under section #beb1 disaggregated by income level 7or an appropriate proxy for income level1 including for the very poor71 by gender1 and by type of assistance4 7#d7 ,the results of the monitoring system required under section #bec4 7#e7 ,information about any method in place to assess poverty levels under section #bed4 4 7i7 ,definitions ,section #bei of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbad;a7 is amended-- 7#a7 in paragraph 7#c71 by striking ,committee on ,international ,relations of the ,house of ,representatives and inserting ,committee on ,foreign ,affairs of the ,house of ,representatives2 7#b7 in paragraph 7#d71 by striking microenterprises and inserting micro1 small1 and medium-sized enterprises2 7#c7 in paragraph 7#f7-- 7,a7 in subparagraph 7,e71 by striking microenterprise institution and inserting micro1 small1 or medium-sized enterprise institution2 and 7,b7 in subparagraph 7,f71 by striking microfinance institution and inserting financial intermediary2 7#d7 by striking paragraphs 7#g7 and 7#h7 and inserting the following3 7#g7 ,micro1 small1 and medium-sized enterprise institution ,the term micro1 small1 and medium-sized enterprise institution means an entity that provides services1 including finance1 training1 or business development services1 for micro1 small1 and medium-sized enterprises in foreign countries4 7#h7 ,financial intermediary ,the term financial intermediary means the entity that acts as the intermediary between parties in a financial transaction1 such as a bank1 credit union1 investment fund1 a village savings and loan group1 or an institution that provides financial services to a micro1 small1 or medium-sized enterprise4 2 7#e7 by striking paragraph 7#i72 7#f7 by redesignating paragraphs 7#aj7 through 7#ad7 as paragraphs 7#i7 through 7#ac71 respectively2 7#g7 in paragraph 7#i71 as redesignated1 by striking of microenterprise development2 7#h7 by amending paragraph 7#aj71 as redesignated1 to read as follows3 7#aj7 ,practitioner institution ,the term practitioner institution means a not-for-profit entity1 a financial intermediary1 an information and communications technology firm with a mobile money platform1 a village and savings loan group1 or any other entity that provides financial or business development services authorized under section #beb that benefits micro1 small1 and medium-sized enterprise clients4 2 7#i7 in paragraph 7#ab71 as redesignated-- 7,a7 in the paragraph heading1 by striking ,united states-supported microfinance institution and inserting ,united states-supported financial intermediary2 and 7,b7 by striking ,united ,states-supported microfinance institution and inserting ,united ,states-supported financial intermediary2 and 7#aj7 in paragraph 7#ac71 as redesignated1 by amending subparagraph 7,b7 to read as follows3 7,b7 living below the international poverty line 7as defined by the ,international ,bank for ,reconstruction and ,development and the ,international ,development ,association 7collectively referred to as the ,world ,bank774 4 7j7 ,technical and conforming amendment ,title ,,vi of chapter #b of part ,i of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bbaa et seq47 is amended in the title heading by striking ,microenterprise development assistance and inserting ,development assistance for micro1 small1 and medium-sized enterprises4 #e4 ,report and briefing by the ,united ,states ,agency for ,international ,development 7a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 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 amendments made by this ,act1 including actions to improve the gender policies of the ,united ,states ,agency for ,international ,development pursuant to section #c4 7b7 ,public availability ,the report required under subsection 7a7 shall be posted and made available on a text-based1 searchable1 and publicly-available internet website4 #f4 ,report by the ,comptroller ,general of the ,united ,states 7a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 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 micro1 small1 and medium-sized enterprises administered by the ,united ,states ,agency for ,international ,development4 7b7 ,matters to be included ,the report required under subsection 7a7 shall include an assessment of the following3 7#a7 ,what is known about the impact of such development assistance on the economies of developing countries4 7#b7 ,the extent to which such development assistance is targeting women and the very poor1 including what is known about how such development assistance benefits women4 7#c7 ,the extent to which the ,united ,states ,agency for ,international ,development has developed a methodology to ensure compliance with the targeted assistance requirement under section #beb7;c7 of the ,foreign ,assistance ,act of #aifa1 as amended by section #d7;b77#c71 and the quality of such methodology4 7#d7 ,the monitoring system required under section #bec7;b7 of the ,foreign ,assistance ,act of #aifa1 as amended by section #d7;c71 including the quality1 appropriateness1 and feasibility of such monitoring system4 ,passed the ,senate ,december #ai1 #bjah4,secretary