Grameen America

Grameen America is a 501(c)(3) nonprofit microfinance organization providing microloans, financial training, savings programs, and credit-building services to women living in poverty in the United States. Founded in Queens, New York, in January 2008 by Nobel Peace Prize laureate Muhammad Yunus, the organization is an adaptation of his successful Grameen Bank model from Bangladesh. Yunus established Grameen America on the belief that the microfinance system could thrive in urban American settings, where a significant portion of the population lacks access to mainstream financial institutions. The organization is currently led by President and CEO Andrea Jung, former Chairman and CEO of Avon Products, Inc.

The business model is centered on a peer-group lending system. To receive a loan, an individual must live below the poverty line, be near a Grameen America branch, and form or join a five-member group of other aspiring entrepreneurs. No collateral, credit history, or existing bank account is required. After completing a five-day training program, each member receives their first loan, with a maximum of up to $2,500. These loans are intended to start or expand income-generating businesses, such as food carts, tailoring services, and craft sales. Members attend mandatory weekly meetings where they repay their loans, make deposits into savings accounts, and receive peer support and mentoring. This high-touch model fosters accountability, resulting in a reported repayment rate of 99% or higher.

Grameen America's core services include microloans, a savings program with partner commercial banks, financial education, and credit establishment by reporting loan repayments to major credit bureaus like Experian and Equifax. By January 2023, the organization had disbursed over $3 billion in loans to more than 164,000 women across numerous U.S. cities, including locations in New York, California, Texas, and Florida. The interest income from the loans helps make the model self-sustaining within four to five years in a given location. The organization operates as a nonprofit and is funded through a combination of grants from foundations like the Bill & Melinda Gates Foundation, corporate partnerships, and social impact investment funds.

Keywords: microfinance, microloans, women entrepreneurs, financial inclusion, poverty alleviation, peer lending, credit building, financial education, social business, community development, nonprofit, economic mobility, small business loans, underserved communities, asset building, group lending, financial services, impact investing, economic empowerment, financial literacy