Grameen America, the U.S. unit of Grameen Bank, has announced the launch of its first statewide microloan program in Connecticut.
Grameen Bank was started by Muhammad Yunus in 1976, who was studying ways to provide the rural poor in Bangladesh with access to capital, credit and banking services. Yunus created a microloan program that developed into Grameen Bank —in 2006, Yunus and his institution were awarded the Nobel Peace Prize in 2006.
Grameen America has sought to bring that same access to credit and support for female entrepreneurs in the U.S., and it has been operating those services in New Haven since July 2021 —to date, it has provided loans totaling over $826,000 to 372 female entrepreneurs in the state. According to CEO Andrea Jung, Grameen’s loans are under $5,000 each and the repayment rate is 99.8%,
Going forward, the program seeks to invest $88 million in 7,400 business across the state. Each business will be owned by a woman at or below the federal poverty level who will receive a loan under $2,500. And while this might seem small, the organization has a track record of transforming lives with those sums and earning a return on investment.
“Access to capital is a game changer for women entrepreneurs,” Jung said at an April 1 press conference in New Haven, noting that about 100 women in Bridgeport have already signed up to get loans.
“This is an exciting inflection point in time for the organization,” Jung said. “It’s hard to believe we are here because over the past two years all of us have experienced ourselves and are witnessing surreal times. Particularly when the health and economic hardships for underserved communities have been particularly felt.”
In addition to the microloans, Jung announced that Grameen will launch a new health program in the state as well. Called Grameen Promotoras, it will provide borrowers with basic health screenings, informative medical workshops, and assistance navigating the health system to further enable female entrepreneurs.
Among those who have already benefitted from access to Grameen loans is New Haven resident Jennifer Lopez, who launched a business that teaches pattern making out of her home —she said the Grameen loan she received proved to be a lifeline.
“My business has been hard for me to build,” Lopez said during the April 1 press conference. “I have a family on my own. I have four boys and they are special needs and I’m the main provider in the home. But Grameen America helped me build the business that I always wanted to: a school in New Haven for pattern drafting and fashion for teenagers.”
Lopez, who admitted to being nervous about addressing a crowd, choked up describing what she encountered before receiving the Grameen loan.
“Grameen America has given me that opportunity,” she continued “because every time I tried to get a loan, they denied me. But because of this group, I built myself and showed my boys that they could do anything.”
Gabriela Aragon made use of her loan to buy ingredients and upgrade her cookware. She told the April 1 press conference that she was able to launch a catering business selling Ecuadorian food and is now considering opening a physical location and taking on employees, which she attributed to the support of the organization at least as much as the loan.
“I know being a member of Grameen America has helped me in my business,” Aragon said. “The support I received from the members in the center is one of my favorite parts of the program. We all take each other’s advisements and want to see one another succeed. It is incredible to be surrounded by other strong women like me who are trying to build businesses and improve their lives and those of their families.”
