Before the economic collapse, microfinance — the granting of very small loans, mostly to poor people — was a concept most closely associated with the developing world. But tight credit and the recession have increased the demand for smaller loans in the United States, giving microlending a higher profile and broadening its appeal. Both Kiva and Grameen Bank, a microfinance group that is based in Bangladesh and was started by Muhammad Yunus, winner of the Nobel Peace Prize for his groundbreaking work in microlending, have widened their lending to Americans.
In addition, last year’s economic stimulus bill granted $54 million to the Small Business Administration for lending and technical assistance to microlenders. Cities like San Francisco and New York have expanded or introduced their own microfinance programs. This year, loan applications at many of the country’s 362 microfinance outfits, some of which have been quietly operating since the 1980s, have more than doubled. Many of the groups expect them to keep rising as other financing streams remain tight for small companies.
We need a large Microlending fund in CLE/NEO.
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