Low-income Business Lending The Challenge of.

Low-income Business Lending


The Challenge of


• There are very few options

The Challenge of



• Banks: high collateral

The Challenge of




• Microcredit: high interest rates

The Challenge of





• CDFIs: prohibitive regulations

The Challenge of





• CDFIs: prohibitive regulations

• Coops yet another step harder

The Challenge of

Changing Finance

• Reform current institutions

• Tap into anchor institutions

• Build new institutions

• Start from community: build

around their need

Building from Scratch

(The Working World Model)

• No personal guarantees




• Non-extractive loans





• Risk shared by the community

of borrowers





• Risk shared by the community

of borrowers

• Intensive technical assistance


Vision for the future

• Community-owned

• Controlled by members

• Community risk sharing

• Non-extractive lending

• Education & technical

assistance

Toward a new finance:

Low-income Business Lending The Challenge of.

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