On May 14, the House approved, by voice vote, legislation (H.R. 192) that would provide small loans to entrepreneurs and small business owners in developing countries. H.R. 192 would allocate $175 million in FY2003 and $200 million in FY2004 for the microenterprise loans administered by the U.S. Agency for International Development (USAID). In FY2001 and FY2002, Congress allocated $155 million for these loans.
The measure also would require USAID to measure the poverty levels of potential loan recipients as a way to guarantee that half of the loans are given to the bottom 50 percent of inhabitants living below each country’s poverty line or to those who live on $1 or less per day.
The bill’s sponsor, Rep. Chris Smith (R-NJ), noted that approximately 70 percent of the loans go to women “who are very often the most vulnerable in these societies, sometimes subjected to abuse and the need of economic opportunities in the developing world.” He added, “this is a woman’s empowerment bill, to ensure that more women get out of poverty so they are not prey for the traffickers and the others who would exploit them.”
The House and the Senate approved similar bills (H.R. 4073/S. 3032) last year; however, the measure was sent back to the House due to technical changes.
