MCE Social Capital
Chair/Founder, MCE Social Capital
MCE Social Capital (formerly MicroCredit Enterprises), founded in 2006, uses an innovative, private-sector financial model to mobilize the good credit of high net worth individuals, foundations and companies (called Guarantors) to guarantee microloans to impoverished people (mostly, women) in the developing world,
Rather than depending on donations, grants or government funding, MCE Social Capital uses a Guarantor’s credit and financial strength to borrow money commercially which, in turn, funds loans for overseas nonprofit microfinance programs. These guarantees 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.
As of 2013, MCE Social Capital – a not-for-profit social venture — has assembled $90 million of guarantees toward a goal of at least $120 million. 100% of the board, 100% of the loan committee and the CEO are all Guarantors. In 9 years the MCE Social Capital social finance model has had only two defaults.
A “virtual” operation without the overhead costs of a traditional “brick and mortar” headquarters, MCE Social Capital itself is self-sufficient without donations or grants – a rarity in the nonprofit world. Overhead costs are a low 3% of loans outstanding; the organization has been financially sustainable since 2007.