The Microfinance Human Capacity-Building Act addresses the microfinance / microenterprise development industry’s human resource needs and focuses on building capacity on all levels, including governance, senior and middle management and loan officers.  Activities supported by the legislation include traditional and non-traditional education, training and recruitment.  The legislation will require that federal funding be matched with private dollars.

“The goal is to reform our country’s aid programs to encourage responsibility and provide incentives for recipients to work their way out of poverty, rather than just giving a handout,” Boozman said. “Many Arkansans are generous with their time and resources. They support charities and churches that help people in poverty-stricken areas. However, our assistance is most effective if it encourages work, reinvestment, and entrepreneurship.”

The microfinance industry provides small loans for enterprise development as well as savings and micro insurance services. The majority of micro loans are made to women entrepreneurs.  To support this trend, the Microfinance Human Capacity-Building Act requires the U.S. Agency for International Development (USAID) to ensure that not less than 50 percent of those in the capacity building activities supported by the act are women and 100 percent are individuals from developing countries.

“I believe our country should play a role in helping people around the world improve their standard of living, but we don’t need to be running a social welfare program overseas,” Boozman said. “This legislation will encourage people to do what they can to help themselves and help them develop a sense of pride, while increasing their economic well-being at the same time.”

The Microfinance Human Capacity-Building Act is a bipartisan piece of legislation cosponsored by Rep. Gregory Meeks (D-NY).