NorCalUrban

I finally joined Kiva.org. I've been impressed with what they are doing - and the practical way they are getting micro enterprise funds out to developing nations. I'm excited to get some funds out to folks! Check this out also: Kiva's co-founder's blog. We're still planning / praying / researching on how we can adapt this model for use domestically. I hope to have a pilot project up and running in '09.

Yunus is a Nobel Prize recipient and the author of the seminal book on micro finance "Banker to the Poor." He was recently interviewed on CNN. You can see the interview here. Here are some key quotes from the interview: “Women have a long-term vision, she wants to move up to something” “It’s not Grameen Bank came and told them to do that; it is in their hearts” “We developed a system which doesn ’t need collateral, guarantee, legal” “We citizens, we individuals, are capable people addressing social issues” Inspiring stuff...

Panelists: Jack Litzenburg (Charles Stewart Mott Foundation), Terry Bell (Rockwell Fund), Tracy Kartye (Anne E. Casey Foundation) Comments from Jack Litzenburg Mott Foundation - national funder - Early entry into the ME market - Helped build equity in early ME funds - Documented lessons in ME - Today the foundation has turned it's attention to: Started ME Funders Group operated through the Aspen Institute. See document created to educate funders. They created a series of funder guides Funded "Micro Test" collects data to identify best practices Building scale in US M.E. Interested to see what the impact of building scale is on the community / organizations - Tomorrow? Micro Enterprise Leadership Academy Develop entrepreneurial network for entrepreneurs Cost of money is a big deal in the emerging world. In our economy the major hurdle is getting to market, competing with the big guys. Ex. creation of brand name speciality foods from Appalachia that helps bring products to ...

Panel: Hon. Anna Escobedo Cabral (US Treasurer), Michael Barrera (US Hispanic Chamber), Leizhu Lui (United for a Fair Economy) , Regina Montoya, Moderator (New America Alliance) Meizhu Lui is the author of the book The Color of Wealth. Notes from Michael Barrera's comments: - Latino micro business is one the rise. 108k latino businesses in the US. - Asset building is key, Latino's understand business - SBA has been a key help - Assets are a key determinant for loans since they determine lending criteria - Example - working out, start with 5 lbs and work up to 200 lbs. Micro lending institutions are like personal trainers that help build up small business. - IDA's are becoming more and more popular with lenders. Drawbacks are high admin costs and lack of interest. - Black and Hispanic median met worth is currently flat. White median net worth gained 6%. - Assets = leverage. - Businesses with assets are able to build capacity - 17% of US business meet the official definition ...

Goal of Micro-enterprise: Offer small loans to people so they can increase their income and promote self employment. Theme: Development of ME development in the US Goals: expand opportunities and community economic development more flexible terms than banks In US credit is only one part education and training are important part improves survival rate / credit repayment laws are regulations are significant here, more so than the informal setting outside of the US There are alternative sources for credit in US Lending is not essential to the broader mission of starting businesses Huge benefit to families and communities Small business = less than 500 employees. Micro business= less than 5 ME programs are about more than the extension of credit... mentoring / networking / training / sales programs / connections to banks, colleges... Offers borrowers technical support thereby helping sucess rates. Can ME programs become self sustaining? Income from check cashing and remittances Reduced...

- ME has both direct and indirect impact on the overall economy. - It also reduces the reliance on the social systems (welfare, food stamps..) - Positive effects on families. Children see their parents succeeding (dignity building). Has inter generational affects. - Micro finance enables creativity on a local and personal level - 'Micro Equity' products are now emerging - ME lending is a 'wrap around' process including basic financial literacy training, etc... - Hear beyond the need for a loan. - "Grow' loans. Start small with clients, help them step up to larger loans. - Develop network of business owners. This can protect the investments by mutually growing businesses. Micro Equity Product: VC usually don't go down to ME lending Identify individually already in portfolio who have potently Specifically picking individuals Education about VC is part of the process pros and cons of VC money Accion NM founded LLC to capitalize loan fund: EQ2 products end up a...

I'm currently at the Summit on Micro finance in the U.S. hosted by Accion Texas in San Antonio. Micro finance is one of the next issues I'm interested in, since there is such a need in our community for developing small businesses. Micro enterprise (ME) in the US - Robert Annibale, Citi Much opportunity in the US immigrant communities Micro finance (MF) institution - one that brings financial services to the unbanked. Many types of institutions. Most are not empowered to take deposits. Mexico - 75% of families don't have access to financial services 12% of individuals in U.K. don't have bank account 12% of US adults are 'unbanked' - lack of financial services designed for their needs Low income Hispanic Small businesses, 'Mom and Pop' Needs are more than credit - it's about capacity building and providing access to other services Book: "Fortune at the Bottom of the Pyramid" Community focused banks are best positioned to play a role Supplie...