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Low-income Business Lending
Low-income Business Lending
The Challenge of
Low-income Business Lending
• There are very few options
The Challenge of
Low-income Business Lending
• There are very few options
• Banks: high collateral
The Challenge of
Low-income Business Lending
• There are very few options
• Banks: high collateral
• Microcredit: high interest rates
The Challenge of
Low-income Business Lending
• There are very few options
• Banks: high collateral
• Microcredit: high interest rates
• CDFIs: prohibitive regulations
The Challenge of
Low-income Business Lending
• There are very few options
• Banks: high collateral
• Microcredit: high interest rates
• CDFIs: prohibitive regulations
• Coops yet another step harder
The Challenge of
Changing Finance
• Reform current institutions
• Tap into anchor institutions
• Build new institutions
• Start from community: build
around their need
Building from Scratch
(The Working World Model)
• No personal guarantees
Building from Scratch
(The Working World Model)
• No personal guarantees
• Non-extractive loans
Building from Scratch
(The Working World Model)
• No personal guarantees
• Non-extractive loans
• Risk shared by the community
of borrowers
Building from Scratch
(The Working World Model)
• No personal guarantees
• Non-extractive loans
• Risk shared by the community
of borrowers
• Intensive technical assistance
Building from Scratch
Vision for the future
• Community-owned
• Controlled by members
• Community risk sharing
• Non-extractive lending
• Education & technical
assistance
Toward a new finance: