Grameen America Press Kit - June 2012
- 1. Grameen America Media Kit July 2012 1
- 2. What We do Grameen America provides affordable micro-loans to financially empower low-income entrepreneurs. Communities Served: Grameen America currently operates 7 branches in New York City (Queens, Manhattan, Brooklyn, and the Bronx), Omaha, NE, Indianapolis, IN and the Bay Area, CA. Group-Lending Model: One of the unique pieces of the Grameen model is our group-lending. Borrowers must form a group of five peers to receive a loan. They meet each week with this group and a Grameen America Center Manager to repay the loan principal, interest, and deposit savings. These weekly meetings create a platform of peer support where borrowers can discuss successes and challenges of their businesses. Products and Services: Low-cost loans Credit Establishment Savings Program Financial Education Loans for Entrepreneurship: 100% of Grameen America microloans support income-generating activities. Financial Education: Borrowers receive ongoing training in financial literacy through the weekly Center meetings 2
- 3. Current Success Variable Total Total Borrowers 10,500 Loans Disbursed >$45.6MM Savings Deposited1 >$1,00,000 Maximum 1st Time Loan $1,500 Average Credit Score2 640 Interest Rate3 15% on a declining balance 1 All borrowers are required to deposit minimum of $2/week in savings 2 For borrowers that dont have credit history, after 6 months of regular repayment with GA, scores reach 640 3 GA charges 15% on a declining balance. We do not charge any additional fees or application charges. 3
- 4. How We Work 1 2 3 Mary, who lives below The group goes through an Upon successful completion of training and the poverty line, selects initial 5-day financial opening a savings account, each borrower and forms a group with training program; Each gets a small business loan to start or expand 4 other people she trusts borrower has to contribute a business and generate income $2/day to savings Maximum first time loan - $1,500 6 -12 month loans 15% interest rate on a declining basis No collateral required Capital and Job Growth 4 5 Financial Grameen America offers Savings Borrowers meet on a weekly Education a powerful poverty basis with Grameen Americas alleviation tool that Center Managers builds on the following Meetings are held in borrowers key elements Capital Mentoring homes or a nearby common space Credit Building 4
- 5. Professor Muhammad Yunus Grameen America was founded by Professor Muhammad Yunus, considered by many the father of microcredit. For his work fighting poverty from the ground up in Bangladesh, Professor Yunus and the Grameen Bank he founded won the 2006 Nobel Peace Prize. On August 12, 2009 Yunus was awarded the 2009 Presidential Medal of Freedom the highest civilian honor a US President can bestow at the White House. Started in January 2008, Grameen America represents Yunus mission: to bring Grameen microcredit to the US, where the need for basic community banking for low-income families. 5
- 6. Contact Information For More information please contact: Katherine Rosenberg Vice President, Strategic Partnerships krosenberg@grameenamerica.org 212-735-4023 www.grameenamerica.org 6