An Efficient Business Model

Lean and Cost-Effective

Our organization is composed of a blend of compensated and pro bono executives, and we maintain a “virtual” operation without overhead costs of a traditional "brick and mortar" headquarters. This allows MicroCredit Enterprises to keep its overhead extraordinarily low: compared with other not-for-profits that run at 6-12%, we run at about 4% of loans outstanding.

Our Track Record

Launched in 2006 with seven Guarantors, MicroCredit Enterprises now has 71 Guarantors backing loans to a globally diversified portfolio of local finance organizations, providing food security for hundreds of thousands of women and children. Since launching in 2006, MicroCredit Enterprises' borrowers have a near-perfect record of repaying their loans. As we grow larger, we reach more people and minimize risk.

MicroCredit Enterprises is chiefly financed by the differential between the interest rate charged microfinance institutions and the interest rate which MicroCredit Enterprises itself pays to borrow capital from banks and foundations. All charitable contributions to MicroCredit Enterprises are typically earmarked for the Permanent Fund to Alleviate Extreme Poverty.

MicroCredit Enterprises is a 501(c)(3) public charity with an Internal Revenue Service approval letter. MicroCredit Enterprises is audited annually by the RINA Accountancy Corporation.

Permanent Fund to Alleviate Extreme Poverty

The Permanent Fund to Alleviate Extreme Poverty directly supports microloans from tax-deductible contributions. No overhead, no administrative fees, no fundraising costs are paid for with donated money to the Fund. Every gift to the Permanent Fund provides perpetual benefits. As loans are repaid, the money is loaned out in perpetuity.

Hunter Douglas Endowment for Microfinance Sustainability

MicroCredit Enterprises has established the Hunter Douglas Endowment for Microfinance Sustainability, which is currently funded at $1 million. Operationally, this fund serves as a liquidity account or bridge financing to respond to unexpected financial emergencies in the MicroCredit Enterprises overseas loan portfolio.