Chair/Founder, MicroCredit Enterprises
MicroCredit Enterprises, founded in 2006, is a not-for-profit organization that uses an innovative, private-sector financial model to mobilize the good credit of high net worth individuals, foundations and institutions (called Guarantors) to guarantee microloans to impoverished people (mostly, women) in the developing world,
Rather than depending on donations, grants or government funding, MicroCredit Enterprises uses a Guarantor’s credit and financial strength to borrow money commercially which, in turn, funds loans for overseas nonprofit microfinance programs. As of 2012, MicroCredit Enteprises had assembled $73 million of guarantees toward a goal of at least $100 million.
These guarantees now support food security for approximately 1 million people living in 22 countries on 5 continents. MicroCredit Enterprises is uniquely focused on families living in remote areas and in extreme poverty—often on $1 per day or less.
A “virtual” operation without the overhead costs of a traditional “brick and mortar” headquarters, MicroCredit Enterprises itself is self-sufficient without donations or grants – a rarity in the nonprofit world. Overhead costs are a low 3% of loans outstanding.