Grameen America launches impact fund for minority women entrepreneurs

Grameen America launches impact fund for minority women entrepreneurs

Grameen America has announced the launch of a $17.5 million impact investment bond aimed at funding affordable microloans, financial literacy training, and credit-building opportunities for low-income women entrepreneurs of color in the United States. 

Proceeds from the Social Business Fund II (SBF II) will enable the organization to make nearly $200 million in microloans over the bond's five-year, fixed life, with the $17.5 million raised being redeployed again and again as loans are repaid. Investors in the bond have agreed to forgo 50 percent of their return in year one, with the proceeds to be reinvested in additional loans to help women entrepreneurs of color sustain or rebuild businesses impacted by the coronavirus pandemic.

SBF II is Grameen America's second social business fund focused on low-income minority women business owners and is part of the Economic Relief and Recovery Fund effort launched by the organization in response to the pandemic.

"The Grameen America Social Business Fund II is part of our effort to provide critical support to the economically underserved women in our microfinance program as they continue to manage through the ongoing crisis," said Grameen America SVP and CFO David Gough. "Our investors in SBF II will help create an inclusive economic recovery for the fifty-two thousand minority businesswomen in our program by putting their impact investment dollars to immediate use in the form of critical microloans."