Who is Grameen America?

Grameen America is a nonprofit microfinance organization that empowers underserved women to build small businesses and better lives for their families. We provide affordable capital, credit and asset-building, financial education, and peer support to enable our members to boost their business income, create jobs in their communities, and enter the mainstream financial system. Since opening in January 2008, Grameen America has invested over $4.5 billion in more than 193,000 low-income women entrepreneurs. 

Grameen America invests in the entrepreneurial spirit of underserved women and is the only U.S. microfinance institution that provides unsecured, non-recourse loans starting at $500-2,500 to women entrepreneurs in need. For context, the interest on a $1,000 loan is roughly $48.00 over the course of a 26-week loan cycle. 

Why does Grameen implement a group model? What are its benefits?

Grameen’s model is a proven, community-based solution to advance financial equity and inclusion for Black and Brown women. Our products and services are designed to deliver an evidence-backed, viable pathway to expansion and economic sustainability for Black communities. Through our social capital model, Grameen offers a holistic approach and 360-degree platform for microlending.

The group model builds a network of like-minded entrepreneurs, each lifting their fellow entrepreneurs up in the pursuit of their individual journeys. This network becomes a strong support system throughout a member’s entrepreneurial journey. Social capital also acts as support for underwriting our loans by maintaining close communication ties with each other, knowing and verifying each others’ businesses, and supporting each other through input and business support. 

Is Elevate by Grameen America different from Grameen America?

The Elevating Black Women Entrepreneurs initiative, often referred to as Elevate by Grameen America, aims to meaningfully address systemic barriers and funding gaps that women in financially underserved Black communities face. Launched in May 2021, Elevate by Grameen America aims to accelerate Grameen America’s commitment to racial equity. Elevate by Grameen America offers affordable loan capital, business development training, and asset- and credit-building tools to impact and improve emerging Black women entrepreneurs’ businesses, credit scores, and personal savings. Elevate by Grameen America is an initiative of Grameen America; we are not a separate entity. We increase women's financial mobility and advance racial equity by extending our proven approach of engaging with and lending directly to Black women entrepreneurs. 

Does Grameen charge a fee for its program?

Grameen does NOT charge a membership, entry, or loan origination fee. There is never an entry or origination fee to join Grameen America or to renew your loan. Your only payment to Grameen is your weekly installment amount, which includes principal and interest. If a Grameen member or staff member requires you to give them money to receive your Grameen loan, please report them to info@grameenamerica.org immediately.

We use a third-party payment vendor called PayNearMe, which enables convenient payment channels. The vendor charges a fee that varies based on the type of channel used. This fee is charged directly by the vendor and not by Grameen.

If a current Grameen member invites me to join Grameen America, do I need to pay them?

Grameen does not charge a fee for its programs or services. Thus, you should never pay anyone when seeking to join Grameen America. If someone asks you for payment to be part of their group or center, please immediately report them to your Center Manager, Branch Manager, and info@grameenamerica.org.

Will I be able to invest in whatever I want?

Funds received through the Grameen program must be used by you to either start a business or help you grow an existing business. We encourage members to invest in business expenses that will directly support revenue generation. With the revenue generated and profits, indirect business expenses can be covered. 

Do I need to invest my loan with the person inviting me to join Grameen America?

No, you must invest 100% of your loan in your business or income-generating activity.

Does Grameen help build my credit?

Grameen America does not require a previous credit history, credit score, or background check to join the program. However, we help members build credit by reporting all payments to two major credit bureaus, Experian and Equifax. All loan transactions are reported to the bureaus by the 15th of the following month. You will not see updates to your balance on your credit report until after the 15th of the subsequent month.

The Grameen loan will be one input to an improved credit score and, with a strong repayment history, will support credit building. Good financial management across all obligations will be key!

Can I pay off my loan sooner?

Yes, there is no penalty for paying off your loan sooner than 25 weeks. However, the next loan will be disbursed after a minimum of 23 weeks from the prior disbursement. A new loan will not be disbursed before 23 weeks, even if the current loan is paid off sooner. We highly encourage members to continue participating in weekly center meetings at the end of the cycle and even between cycles. You will receive a loan disclosure at the time of your loan disbursement that outlines your weekly installment amount for the duration of the loan cycle. 

What are the requirements for joining Grameen America?

To join Grameen America, all members must be part of a group of five (5) like-minded women entrepreneurs and must submit :

• Government-issued photo identification (i.e., driver’s license, state ID, or passport)

• Proof of address issued within the last 60 days (utility bill, medical bill, paystub, or phone bill)

All members must commit to paying their weekly loan installment and attend weekly center meetings as scheduled by the group and center and follow Grameen’s policies and procedures. 

Further, members must complete:

• Budget worksheet

• Verification of physical residence within the branch boundaries 

• New Member Profile – staff will complete while in-person with you

• Member Commitment & Acknowledgement Form 

Some branches require members to meet in person at the branch for all onboarding activities and loan disbursements.

What is the timeline for onboarding and getting my loan?

Timing varies by location, but typically, members can expect to complete onboarding and receive their disbursement in about four weeks from the time of the completed information session. This includes time to form your group and complete the onboarding requirements. The process could be longer if the member has challenges forming her group of at least five women. 

Why are the home and business visits necessary for Grameen onboarding?

At Grameen America, we have always practiced our principle of “going to the member” rather than the “member coming to us.” Home or business visits allow Grameen staff to get to know you and your family in an environment most comfortable for you. This interaction helps facilitate one-on-one communication and establish trust between Grameen staff and the member. During the time in the home or business, Grameen staff completes the new member profile and loan application, verifies the physical address, observes business activities if present, and captures all required images of the member’s documents. 

Why does Grameen need to verify the utilization of my loan?

As a demonstration of accountability to their group & center and to meet reporting requirements from our funders members are expected to show proof of investment based on the reasons provided for the loan purpose. The Grameen microloan is meant as working capital for income-generating business activities only. Grameen needs to complete the loan utilization check to:

• Verify the appropriate use of funds, including proper loan investment, as soon as possible after loan disbursement

• Ensure members make financially sound investments and begin generating income right away

• Help members begin business planning by determining loan investment before receiving loan disbursement
  

What types of businesses are allowed?

Grameen America lends to all types of legal businesses. We are inspired by our members’ entrepreneurial abilities to start, grow, and run successful businesses. Usually, a center will have a mix of different business types. This diversity helps the members form a strong network and support each other. 

Grameen America does not advise members about their business choices or refuse loans based on business type—as long as borrowers can prove their funds are being used for business purposes and the business is legal. It is Grameen America’s experience that its members know how best to use their business loans and the type of business they believe will be successful for themselves and their families.

Can I join Grameen America with family members?

At Grameen America, we ensure a fair membership application process. Only one member of a household can apply, and close relatives, such as mother/stepmother, daughter, sister, mother-in-law, grandmother, and aunts, are not allowed to become members of the same Grameen group. This policy is in place to maintain fairness and equal opportunities. Please note that submitting the application does not guarantee acceptance to the program.

Where do I find detailed information about my loan and payments?

With the MyGrameen member app , you can take ownership of your business journey. Manage your current loan details, payments, new loan requests, attendance, and more. Your Center Manager or Branch Manager can help get you started.

Are members allowed to promote their paid services with other members and receive payment from those members from their GA loan? 

Technically, members can use their Grameen loan to pay for any business-related expenses. We recommend that members invest the Grameen loan in expenses that will directly generate revenue, e.g., products to sell, rather than computers or a conference. We encourage members to patronize other members' businesses within the Grameen network and pay for products or services. Grameen staff should not actively participate in promoting a member's paid services to other members to maintain impartiality. 

What is Multi-level Marketing (MLM), and does Grameen America encourage participants to join MLMs?

In multi-level marketing, companies sell their products or services through person-to-person sales, generally offering sellers the opportunity to earn income from a sales commission or a commission related to the sales of a recruited participant.

Grameen America does not advise members about business choices or refuse loans based on business type. A small percentage of our members sell products through an MLM. This is an income-generating activity through product sales rather than recruiting other women. 

Members cannot recruit other members to their MLMs within any Grameen America forum, such as a center meeting. 

Lastly, Grameen America uses our various channels and forums to disseminate relevant information and educational material that can help our members run successful businesses.