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MicroCredit Enterprises

621 Georgetown Place
Davis, CA 95616

Contact: Jonathan C. Lewis, CEO
Phone: 530-758-8600
MicroCredit Enterprises

MicroCredit Enterprises is an innovative, anti-poverty venture which leverages private capital to make small business loans to impoverished people, mostly women, in developing countries. MicroCredit Enterprises leverages the collateral assets of individuals and institutions to borrow debt capital in the United States which is channeled through locally-run, non-governmental microfinance organizations overseas. Most loan recipients have no credit history, no collateral and no formal education, but with microloans they are able to create and build home-based businesses.


MicroCredit Enterprises has outstanding loans to microfinance institutions in Armenia ($300K), Azerbaijan ($1.6 million), Bolivia ($1.5 million), Cambodia ($1.7 million), Ecuador ($1.0 million), Georgia ($900K), Honduras ($500K), Indonesia ($900K), Mosambique ($400K), Nicaragua ($400K), Peru ($1.9 million), Tajikistan ($900k), Nigeria ($600k), and Vietnam ($600k). This money reaches approximately 66,000 women with micro-businesses, enabling them to provide food security for more than 330,000 people, 60% of whom are children. By the end of 2008, 90,000 entrepreneurs, mostly women, will have microloans thanks to MicroCredit Enterprises.

Client Population

Microfinance programs in developing countries make loans to people, mostly women, surviving on less than $1.00/day. These women have no credit history, no collateral, no traditional legal loan guarantees to offer and no formal education. With microcredit loans, these women create and build home-based businesses (e.g., making soap, animal husbandry, weaving, etc.). New micro loans (for a 4 - 6 month term) can begin as low as $25.00 per borrower.


Each $1 million of collateral (which is the minimum guarantee required by Microcredit Enterprises) supports up to 5,000 microcredit business loans feeding as many as 25,000 people in the developing world. In the event of an overseas financial loss, each guarantor bears the loss on an equitable, pro rata basis. Guarantors do not realize a return on the guarantee risk, but do maintain control of assets and receive all investment returns.


MicroCredit Enterprises
Josephine has used her loan to build a profitable business producing soap, which she has grown from next to nothing to one that generates between $150 and $200 per month. “I was constantly in debt with creditors harassing and threatening to beat me up. My business was irregular. There were periods when I would not produce any soap for lack of materials as no one was willing to give me credit.”

She says, “All my children are in school. Before I joined LAPO, none of them was in school. I was indebted and barely able to feed them.” Full Story

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