The Skinny on Microloans

So, I made my first microloan to a local artisan. Her name is Wendy and she makes awesome apples during the holidays. She has a great product, a venue for sales, a great track record of service and demand, customers ready to buy, but she lacked the small amount of capital it took to get her supplies for the season. Her barrier to success this season was as micro amount of money that my business, Simple Ventures Microfunding, provided in the form of a loan.

Here's a video on how this solution works around the world. It is not great quality, but it gives you an idea.



Muhamed Yunus is the original Banker To The Poor and founder of microcredit in Bangladesh. He developed a formula for helping the desperate poor pull themselves from the bitter edge of poverty. This is not indenturing the poor to debt at outrageous interest rates. It is providing a small amount of working capital to allow a micro-entrepreneur the ability to enter the marketplace. Mohamed Yunus and his bank, Grameen, have enjoyed a 98% repayment rate over the last 30 years.

At Simple Ventures we are using a similar formula and plan. Wendy is our first microloan recipient and we are excited for her success in this holiday endeavor.