Grameen America
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| Founded | January 2008 |
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| Focus | Economic development |
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Area served
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United States |
| Method | Microcredit |
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Key people
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| Slogan | Building a nation without poverty |
| Website | grameenamerica |
Grameen America is a 501(c)(3) nonprofit microfinance organization based in New York City. It was founded by Nobel Peace Prize recipient Muhammad Yunus in 2008. Grameen America is run by former Avon Chairman and CEO Andrea Jung. 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.
Grameen America offers four key products.
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.
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.
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.
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