Grameen America

Services

Grameen America offers four key products.

1. Microloan. The maximum first-time loan is $1,500, though borrowers can return for larger loans once they have repaid their initial loan.
2. Savings program. Grameen America provides no-fee, no minimum balance savings accounts through commercial partner banks.
3. Credit Establishment. Grameen America supports helps build members credit by reporting loan repayments directly to Experian.
4. Financial Education. Grameen encourages group mentoring during a five-day initial training and weekly meetings with members.

Lending process

The requirements to receive a loan: Individual must be living below the poverty line, located in a community with a Grameen America branch and willing to create or join a five member group of like-minded individuals who want to start or expand their own businesses. No credit score, collateral, guarantors, or bank account is required.

Grameen America uses a peer-group lending model pioneered by Professor Yunus and the Grameen Bank in Bangladesh. Once a peer group of five lendees is formed, they go through a financial training program and each open savings accounts. Upon completion of the training program, each member receives their loan. Grameen America staff holds mandatory weekly group meetings during which members repay loans, deposit savings and receive peer support and mentoring. Upon successful repayment, members may apply for another loan. The success of the Grameen Bank microfinance model in Bangladesh demonstrates that a high-touch model based on small weekly payments can yield exceptional repayment rates.

Purpose of loans

Grameen America requires all loans to be used to start or expand income-generating businesses. Common businesses include food carts, flower stands, tailoring, jewelry and crafts and salon services.

Locations

Grameen America's first branch, located in Jackson Heights, Queens, opened in January 2008. As of Q2 2014, Grameen America operates in Queens, Brooklyn, Bronx and Manhattan, New York, as well as in Omaha, Nebraska, Indianapolis, Indiana, Charlotte, North Carolina, San Francisco Bay Area, Los Angeles, and San Jose, California, Austin, Texas, Union City, New Jersey and Boston, Massachusetts.

Previously concentrated almost entirely around New York, Grameen America now targets Los Angeles to develop. The organization is looking at expanding its two branches in Boyle Heights and Pico Union to 13 total, providing more than $650 million in microloans to 91,000 female-owned businesses. California Community Foundation decided to contribute $2.5 million, including $500,000 in grants, $1.5-million in loans, and $500,000 in donor-advised funds.

History

Grameen America was founded upon the belief that Grameen Bank's microfinance lending system could work in urban America as well as it had in Bangeldesh. Professor Yunus believed that for the world to acknowledge the power of microfinance, it must work in the capital of international finance, New York City, where there exists a huge population of people who do not have access to banks and mainstream financial institutions. Grameen America opened its doors in January 2008 during the largest financial crisis of the modern era.

New York City is the world capital of banking. In these skyscrapers that New York built, they control world finance. What I pointed out is that they do the banking with the world but they don't do the banking with their neighbors. We are here to show that there is nothing wrong with doing banking with neighbors. So we hope we will create some confidence in them. If we change the banks' mind, the whole world will change.

Statistics

As of Q1 2015, Grameen America had disbursed over $260 million in micro-loans to more than 47,000 women living below the US poverty line.

Management

Board of Directors:

Development Team:

Affiliation

Grameen America is a Grameen replication project.