501(c)(3)
A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of 50 ...
nonprofit
microfinance
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings ...
organization based in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. It was founded by Nobel Peace Prize recipient
Muhammad Yunus
Muhammad Yunus (born 28 June 1940) is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance ...
in 2008. Grameen America is run by former Avon Chairman and CEO
Andrea Jung
Andrea Jung (鍾彬嫻, pinyin: Zhōng Bīnxián, jyutping: zung1 ban1 haa4) (born 1958)
is a Canadian-American executive, non-profit leader, and prominent women's-issues supporter based in New York City. In April 2014, she became president and ...
. The organization provides loans, savings programs, financial education, and credit establishment to women who live in poverty in the United States. All loans must be used to build small businesses.
Services
Grameen America offers four key products.
#
Microloans
:''This article is specific to small loans, often provided in a pooled manner. For direct payments to individuals for specific projects, see Micropatronage. For financial services to the poor, see Microfinance. For small payments, see Micropaym ...
. The maximum first-time loan is $1,500, though borrowers can return for larger loans once they have repaid their initial loan.
#Savings program. Grameen America provides no-fee, no minimum balance savings accounts through commercial partner banks.
#Credit Establishment. Grameen America helps members build credit by reporting loan repayments directly to
Experian
Experian is an American–Irish multinational data analytics and consumer credit reporting company. Experian collects and aggregates information on over 1 billion people and businesses including 235 million individual U.S. consumers and more t ...
.
#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: The 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
A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bu ...
,
collateral
Collateral may refer to:
Business and finance
* Collateral (finance), a borrower's pledge of specific property to a lender, to secure repayment of a loan
* Marketing collateral, in marketing and sales
Arts, entertainment, and media
* ''Collate ...
,
guarantors
In finance, a surety , surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. Usually, a surety bond or surety is a promise by a surety or guarantor to pa ...
, or bank account is required.
Grameen America uses a peer-group lending model pioneered by Professor Yunus and the
Grameen Bank
Grameen Bank ( bn, গ্রামীণ ব্যাংক) is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished without requi ...
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
Jackson Heights is a neighborhood in the northwestern portion of the borough of Queens in New York City. Jackson Heights is neighbored by North Corona to the east, Elmhurst to the south, Woodside to the west, northern Astoria ( Ditmars-Steinw ...
, opened in January 2008. As of 2017, Grameen America operates in
Queens
Queens is a borough of New York City, coextensive with Queens County, in the U.S. state of New York. Located on Long Island, it is the largest New York City borough by area. It is bordered by the borough of Brooklyn at the western tip of Long ...
,
Brooklyn
Brooklyn () is a borough of New York City, coextensive with Kings County, in the U.S. state of New York. Kings County is the most populous county in the State of New York, and the second-most densely populated county in the United States, be ...
,
Bronx
The Bronx () is a borough of New York City, coextensive with Bronx County, in the state of New York. It is south of Westchester County; north and east of the New York City borough of Manhattan, across the Harlem River; and north of the New Y ...
and
Manhattan
Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...
Omaha, Nebraska
Omaha ( ) is the largest city in the U.S. state of Nebraska and the county seat of Douglas County. Omaha is in the Midwestern United States on the Missouri River, about north of the mouth of the Platte River. The nation's 39th-largest cit ...
,
Indianapolis, Indiana
Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Mari ...
,
Charlotte, North Carolina
Charlotte ( ) is the most populous city in the U.S. state of North Carolina. Located in the Piedmont region, it is the county seat of Mecklenburg County. The population was 874,579 at the 2020 census, making Charlotte the 16th-most populo ...
,
San Francisco Bay Area
The San Francisco Bay Area, often referred to as simply the Bay Area, is a populous region surrounding the San Francisco, San Pablo, and Suisun Bay estuaries in Northern California. The Bay Area is defined by the Association of Bay Area Go ...
,
Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
,
Austin, Texas
Austin is the capital city of the U.S. state of Texas, as well as the county seat, seat and largest city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and Williamson County, Texas, Williamson co ...
,
Union City, New Jersey
Union City is a city in the northern part of Hudson County, New Jersey, United States. According to the 2020 United States Census the city had a total population of 68,589,Boston, Massachusetts, and
Miami, Florida
Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a East Coast of the United States, coastal metropolis and the County seat, county seat of Miami-Dade County, Florida, Miami-Dade C ...
."Impact" Grameen America. Retrieved September 20, 2013.
Previously concentrated almost entirely around New York, Grameen America now has 20 branches in 13 cities. It plans to expand to Houston in late 2018.
History
Grameen America was founded upon the belief that
Grameen Bank
Grameen Bank ( bn, গ্রামীণ ব্যাংক) is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished without requi ...
's microfinance lending system could work in urban America as well as it had in Bangladesh. 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. In September 2018, Grameen America hit a notable milestone, having dispersed $1 billion in microloans to over 100,000 of its members in the ten years since its founding.
Statistics
As of the end of 2017, Grameen America had disbursed over $760 million in micro-loans to more than 95,000 low-income women in the United States.
Management
Board of Directors:
*
Muhammad Yunus
Muhammad Yunus (born 28 June 1940) is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance ...
- Chairman of the Board of Directors
*Michael D. Granoff
*Antonia Hernández
*Vidar Jorgensen
*
Andrea Jung
Andrea Jung (鍾彬嫻, pinyin: Zhōng Bīnxián, jyutping: zung1 ban1 haa4) (born 1958)
is a Canadian-American executive, non-profit leader, and prominent women's-issues supporter based in New York City. In April 2014, she became president and ...
Karen Pritzker
Karen L. Pritzker (born 1958) is a documentary film producer, investor, and philanthropist. She is a member of the Pritzker family, the granddaughter of A.N. Pritzker and daughter of Robert Pritzker.Ray Dalio
Raymond Thomas Dalio (born August 8, 1949) is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world's largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater i ...
Andrea Jung
Andrea Jung (鍾彬嫻, pinyin: Zhōng Bīnxián, jyutping: zung1 ban1 haa4) (born 1958)
is a Canadian-American executive, non-profit leader, and prominent women's-issues supporter based in New York City. In April 2014, she became president and ...
- President and CEO, Grameen America
*Shah Newaz - Chief Advisor
*David Gough - Senior Vice President & Chief Financial Officer
*Mindee Barham - Vice President of Development
*Miriam Benitez - Vice President of Human Resources
Morning Joe
''Morning Joe'' is an American morning news and liberal talk show, airing weekdays from 6:00 a.m. to 10:00 a.m. Eastern Time Zone, Eastern Time on the cable news channel MSNBC. It features former Republican Congressman Joe Scarborough r ...