§2213 United States Microfinance Loan Facility

Summary

The President can create a United States Microfinance Loan Facility to pool and manage risks that could hurt U.S.-supported financial intermediaries, like natural disasters, war or civil conflict, national financial crises, or short-term market shocks. Facility — the U.S. Microfinance Loan Facility to help those intermediaries. The Administrator must use the Facility to make loans or loan guarantees to keep those institutions from going bankrupt, but only for intermediaries that can return to self-sustaining operation in a reasonable time. For fiscal years 2005 through 2009, money from the Facility can’t be spent until 15 days after the required notice is given to certain congressional committees. The Administrator should follow existing development-assistance policies when appropriate. Some usual default and procurement rules do not block this help. The Administrator sets the loan terms and fees. For any single event in a fiscal year, loans or guarantees cannot total more than $30,000,000. Guarantees will not pay losses caused by fraud or misrepresentation by the claimant. All guarantees are obligations of the United States and are backed by the federal government’s full payment pledge. Funds for subsidy and administrative costs may come from amounts for subchapter I for each of fiscal years 2005–2009 and are additional to other available funds.