Research shows the tremendous role of microfinance and information technology in creating new opportunities for poor people. Access to financial services is a fundamental tool to empower developing communities. Small business loans offer opportunities to improving families’ well-being and productive capacity.In many of the poorest regions around the world, micro-business creation is the only way for families to escape poverty and build a better future for their Children.
Ever since Dr. Mohammad Yunus began capture public attention with hismicrocredit initiatives, there has beenhundreds of inspiring stories of microentrepreneurs who used tiny loans to start or expand their businesses, and experienced remarkable gains not only in income and consumption but also in health, education, and social empowerment.
Here is a video we’ve created at the Economic Development Investment Fund (EDIF). EDIF offers a revolving loan fund to entrepreneurs in the US. Through participating to the project approval process of the organization, I have seen how much difference a small loan can make to develop a business idea into a growing company: http://db.tt/NBoHAG5
5 Step Revolving Loan Fund:
Step 1---Gather Capital through
-Economic Development Gants
Step 2---Create a Community Loan Fund:
-Revolving Loan Fund helping start, maintain and expand good projects.Loans will be established to foster economic development, create jobs and stimulate growth in the local community.
Step 3---Due Diligence
-Sustainable Project Evaluation
-Determine Positive Social Impact
-Small Business Consulting
Step4---Put Capital to Work
-Approve Deserving Projects
-Monitor the Businesses
Step5--- Repayment of the Loan
-The money goes back into the revolving loan fund to be reused for the next business idea