13 Biggest Microfinance Companies in the United States

Microfinance has been on the rise in the United States in recent years. Microfinance companies provide financial services, such as loans and savings accounts, to people who have little or no access to traditional banking services. These companies serve as a lifeline to small businesses and low-income individuals who otherwise would not be able to secure the funds needed to start or expand their businesses. In this article, we will discuss the 13 biggest microfinance companies in the United States.

Introduction to Microfinance

Before we dive into the list of microfinance companies, let’s take a moment to understand what microfinance is and how it works. Microfinance is a financial service that provides small loans to people who are unable to obtain credit from traditional banks. These loans are typically used to start or expand a small business, and they are usually given to individuals who do not have collateral or a credit history. Microfinance loans are typically smaller than traditional bank loans, and they are repaid over a shorter period of time.

Microfinance companies also provide other financial services, such as savings accounts, insurance, and financial education. These services are designed to help people improve their financial literacy and make informed decisions about their money.

Top 13 Microfinance Companies in the United States

1. Accion: Accion is a non-profit microfinance organization that provides loans to small businesses and entrepreneurs. They offer loans ranging from $500 to $1 million, and they have served over 40,000 clients since their inception in 1991.
2. Kiva: Kiva is a non-profit organization that allows individuals to lend money to entrepreneurs and small businesses in developing countries. Since their launch in 2005, they have facilitated over $1.5 billion in loans to over 3 million borrowers.
3. Grameen America: Grameen America is a non-profit microfinance organization that provides loans, savings programs, and financial education to low-income individuals. They have disbursed over $1.5 billion in loans to over 130,000 borrowers since their launch in 2008.
4. Opportunity Fund: Opportunity Fund is a non-profit organization that provides microloans to small businesses in California. They have served over 20,000 clients since their launch in 1994, and they have disbursed over $400 million in loans.
5. FINCA International: FINCA International is a non-profit microfinance organization that provides loans and other financial services to low-income entrepreneurs in developing countries. They have served over 2 million clients since their launch in 1984.
6. LiftFund: LiftFund is a non-profit organization that provides small business loans to entrepreneurs in 13 states across the United States. They have disbursed over $600 million in loans since their inception in 1994.
7. Accion East: Accion East is a non-profit organization that provides microloans and other financial services to small businesses in the eastern United States. They have served over 30,000 clients since their launch in 1991.
8. Grameen Foundation USA: Grameen Foundation USA is a non-profit organization that provides microfinance services to low-income individuals and small businesses in the United States. They have served over 10,000 clients since their launch in 1997.
9. FINANTA: FINANTA is a non-profit organization that provides microloans to small businesses in Pennsylvania. They have served over 5,000 clients since their launch in 1996, and they have disbursed over $14 million in loans.
10. Justine PETERSEN: Justine PETERSEN is a non-profit organization that provides microloans and other financial services to small businesses and individuals in Missouri and Illinois. They have

11. LiftFund Central Texas: LiftFund Central Texas is a non-profit organization that provides microloans to small businesses in the central Texas area. They have served over 5,000 clients since their launch in 2007.
12. Mercy Corps Northwest: Mercy Corps Northwest is a non-profit organization that provides loans and other financial services to small businesses in the Pacific Northwest. They have served over 10,000 clients since their inception in 1998.
13. Women’s Business Center: The Women’s Business Center is a non-profit organization that provides training, counseling, and microloans to women entrepreneurs in the United States. They have served over 150,000 clients since their launch in 1988.

How to Choose a Microfinance Company

With so many microfinance companies to choose from, it can be difficult to know which one to go with. Here are some factors to consider when choosing a microfinance company:

• Loan size: Make sure the company offers loans that are the right size for your needs.
• Interest rates and fees: Compare the interest rates and fees charged by different companies to find the best deal.
• Eligibility requirements: Check the company’s eligibility requirements to make sure you qualify for a loan.
• Repayment terms: Look at the repayment terms offered by different companies to make sure they are manageable for you.
• Customer service: Choose a company with good customer service that is responsive to your needs.

Conclusion

Microfinance companies play a vital role in helping low-income individuals and small businesses access the funds they need to succeed. Whether you’re looking for a small loan to start a business or need financial education and support, there are many microfinance companies in the United States that can help. By doing your research and comparing your options, you can find the right microfinance company to meet your needs.

1. Are microfinance loans only for low-income individuals?

• Microfinance loans are designed to help low-income individuals and small businesses, but they are available to anyone who meets the eligibility requirements set by the microfinance company.

2. Can I get a microfinance loan if I have bad credit?

• Microfinance companies often have more lenient credit requirements than traditional banks, but they still require borrowers to demonstrate their ability to repay the loan.

3. What kind of interest rates do microfinance companies charge?

• Interest rates charged by microfinance companies vary depending on the company and the borrower’s creditworthiness. However, they are often lower than the rates charged by payday lenders and other alternative lenders.

4. How long does it take to get a microfinance loan?

• The time it takes to get a microfinance loan varies depending on the company and the borrower’s eligibility. Some companies can approve loans in as little as a few days, while others may take several weeks.

5. Can I use a microfinance loan for any purpose?

• Microfinance loans are typically given for business purposes, but some companies may offer personal loans as well. It’s important to check with the microfinance company to see what types of loans they offer and what they can be used for.