Blanca, Grameen America microloan borrower / Photo courtesy of Grameen America. Banner photo by Damon Jacoby / Courtesy of ACCION
At a Glance
Microcredit encompasses a diverse range of lending. Some microcredit organizations specifically seek to partner with individuals— who want to become entrepreneurs— by providing them affordable business capital. Other microcredit organizations focus on strengthening and growing existing small businesses. The Small Business Administration considers loans up to $50,000 as microloans.
Since 1997, UMEZ has offered microloans through partners that specialize in microcredit to individuals underserved by mainstream banking institutions.
Grameen America
Maria, flower shop owner and Grameen America microloan borrower / Photo courtesy of Grameen America
Grameen America, Inc., a nonprofit microfinance organization based in New York, was founded in 2008 by Nobel Peace Prize winner Muhammad Yunus. Its mission is to help alleviate poverty through entrepreneurship by providing loans, savings programs, credit establishment, and other services to low-income individuals in the United States. All loans support small business activities including cleaning, food and beverage, clothing, health and fitness, home décor, salon services, and transportation.
Grameen America has a branch in northern Manhattan, which disbursed its first loan in March 2009. The branch has grown to nearly 400 borrowers with a growth strategy to increase to over 4,000 borrowers.
Between 2011 and 2012, UMEZ provided Grameen America with $3 million in loans to Washington Heights, $500,000 in loans to West Harlem, and $750,000 in grants to expand its operations and programming in Upper Manhattan.
Continuing the partnership with Grameen America, in 2019, UMEZ provided a $4 million loan and a $115,000 grant to the organization. The 2019 loan and grant were used to finance a new micro-lending program in East Harlem and continue funding Grameen’s already established Washington Heights lending branch.
Washington Heights + Inwood Development Corporation
Photo: Rosemary Santos
The Washington Heights and Inwood Development Corporation (WHIDC) has been a long-time partner of UMEZ. Organized in 1978, WHIDC serves to encourage the development and retention of businesses and jobs in Upper Manhattan and to develop efforts to spread awareness of the cultural vitality and attractiveness of the communities to businesses, investors and the public. WHIDC funds an annual street vendor market at the La Plaza De Las Americas, micro-lending loans, childcare business development and the annual Medieval festival at Fort Tyson Park.
Certified in 1996, WHIDC was one of the first CDFIs in the state of New York. The Business Operating Success System (BOSS), WHIDC’s micro-business development program, has provided over 430 loans to small storefront businesses, street vendors, and in-home businesses.
BOSS clients
include street vendors, storefronts, and in-home businesses
$80,000 in grants from UMEZ
for WHIDC to distribute among Upper Manhattan entrepreneurs since 1998
$700,000 in loans from UMEZ
for WHIDC to distribute among Upper Manhattan entrepreneurs since 1998