22 USC 9621 - Authorities relating to provision of support

U.S Code last checked for updates: May 07, 2024

§ 9621.

Authorities relating to provision of support

(a)

In general

The authorities in this subchapter shall only be exercised to—

(1)

carry out of 1

 So in original. The word “of” probably should not appear.

the policy of the United States in section 9611 of this title and the purpose of the Corporation in section 9612 of this title;

(2)

mitigate risks to United States taxpayers by sharing risks with the private sector and qualifying sovereign entities through co-financing and structuring of tools; and

(3)

ensure that support provided under this subchapter is additional to private sector resources by mobilizing private capital that would otherwise not be deployed without such support.

(b)

Lending and guaranties

(1)

In general

(2)

Denomination

(3)

Applicability of Federal Credit Reform Act of 1990

(c)

Equity investments

(1)

In general

(2)

Denomination

(3)

Guidelines and criteria

The Corporation shall develop guidelines and criteria to require that the use of the authority provided by paragraph (1) with respect to a project has a clearly defined development and foreign policy purpose, taking into account the following objectives:

(A)

The support for the project would be more likely than not to substantially reduce or overcome the effect of an identified market failure in the country in which the project is carried out.

(B)

The project would not have proceeded or would have been substantially delayed without the support.

(C)

The support would meaningfully contribute to transforming local conditions to promote the development of markets.

(D)

The support can be shown to be aligned with commercial partner incentives.

(E)

The support can be shown to have significant developmental impact and will contribute to long-term commercial sustainability.

(F)

The support furthers the policy of the United States described in section 9611 of this title.

(4)

Limitations on equity investments

(A)

Per project limit

(B)

Total limit

(5)

Sales and liquidation of position

(6)

Timetable

(d)

Insurance and reinsurance

(e)

Promotion of and support for private investment opportunities

(1)

In general

(2)

Contributions to costs

The Corporation shall, to the maximum extent practicable, require any person receiving funds under the authorities of this subsection to—

(A)

share the costs of feasibility studies and other project planning services funded under this subsection; and

(B)

reimburse the Corporation those funds provided under this section, if the person succeeds in project implementation.

(f)

Special projects and programs

(g)

Enterprise funds

(1)

In general

(2)

Private character of funds

(3)

Purposes for which support may be provided

The Corporation, subject to the approval of the Board, may designate private, nonprofit organizations as eligible to receive support under this subchapter for the following purposes:

(A)

To promote development of economic freedom and private sectors, including small- and medium-sized enterprises and joint ventures with the United States and host country participants.

(B)

To facilitate access to credit to small- and medium-sized enterprises with sound business plans in countries where there is limited means of accessing credit on market terms.

(C)

To promote policies and practices conducive to economic freedom and private sector development.

(D)

To attract foreign direct investment capital to further promote private sector development and economic freedom.

(E)

To complement the work of the United States Agency for International Development and other donors to improve the overall business-enabling environment, financing the creation and expansion of the private business sector.

(F)

To make financially sustainable investments designed to generate measurable social benefits and build technical capacity in addition to financial returns.

(4)

Operation of funds

(A)

Expenditures

(B)

Administrative expenses

(5)

Board of Directors

Each enterprise fund established under this subsection should be governed by a Board of Directors comprised of private citizens of the United States or the host country, who—

(A)

shall be appointed by the President after consultation with the chairmen and ranking members of the appropriate congressional committees; and

(B)

have pursued careers in international business and have demonstrated expertise in international and emerging market investment activities.

(6)

Majority member requirement

(7)

Reports

Not later than one year after the date of the establishment of an enterprise fund under this subsection, and annually thereafter until the enterprise fund terminates in accordance with paragraph (10), the Board of Directors of the enterprise fund shall—

(A)

submit to the appropriate congressional committees a report—

(i)

detailing the administrative expenses of the enterprise fund during the year preceding the submission of the report;

(ii)

describing the operations, activities, engagement with civil society and relevant local private sector entities, development objectives and outcomes, financial condition, and accomplishments of the enterprise fund during that year;

(iii)

describing the results of any audit conducted under paragraph (8); and

(iv)

describing how audits conducted under paragraph (8) are informing the operations and activities of the enterprise fund; and

(B)

publish, on a publicly available internet website of the enterprise fund, each report required by subparagraph (A).

(8)

Oversight

(A)

Inspector general performance audits

(i)

In general

(ii)

Consideration

(I)

support the purposes described in paragraph (3);

(II)

result in profitable private sector investing; and

(III)

generate measurable social benefits.

(B)

Recordkeeping requirements

The Corporation shall ensure that each enterprise fund receiving support under this subsection—

(i)

keeps separate accounts with respect to such support; and

(ii)

maintains such records as may be reasonably necessary to facilitate effective audits under this paragraph.

(9)

Return of funds to Treasury

(10)

Termination

The authority of an enterprise fund to provide support under this subsection shall terminate on the earlier of—

(A)

the date that is 10 years after the date of the first expenditure of amounts from the enterprise fund; or

(B)

the date on which the enterprise fund is liquidated.

(h)

Supervision of support

(i)

Small business development

(1)

In general

(2)

Outreach to minority-owned and women-owned businesses

(A)

In general

The Corporation shall collect data on the involvement of minority- and women-owned businesses in projects supported by the Corporation, including—

(i)

the amount of insurance and financing provided by the Corporation to such businesses in connection with projects supported by the Corporation; and

(ii)

to the extent such information is available, the involvement of such businesses in procurement activities conducted or supported by the Corporation.

(B)

Inclusion in annual report

(Pub. L. 115–254, div. F, title II, § 1421, Oct. 5, 2018, 132 Stat. 3492.)

cite as: 22 USC 9621