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Low-income Business Lending. The Challenge of. Low-income Business Lending. The Challenge of. Low-income Business Lending. There are very few options. The Challenge of. Low-income Business Lending. There are very few options Banks: high collateral. The Challenge of.
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The Challenge of Low-income Business Lending
The Challenge of Low-income Business Lending • There are very few options
The Challenge of Low-income Business Lending • There are very few options • Banks: high collateral
The Challenge of Low-income Business Lending • There are very few options • Banks: high collateral • Microcredit: high interest rates
The Challenge of Low-income Business Lending • There are very few options • Banks: high collateral • Microcredit: high interest rates • CDFIs: prohibitive regulations
The Challenge of Low-income Business Lending • There are very few options • Banks: high collateral • Microcredit: high interest rates • CDFIs: prohibitive regulations • Coops yet another step harder
Changing Finance • Reform current institutions • Tap into anchor institutions • Build new institutions
Building from Scratch • Start from community: build around their need
Building from Scratch (The Working World Model) • No personal guarantees
Building from Scratch (The Working World Model) • No personal guarantees • Non-extractive loans
Building from Scratch (The Working World Model) • No personal guarantees • Non-extractive loans • Risk shared by the community of borrowers
Building from Scratch (The Working World Model) • No personal guarantees • Non-extractive loans • Risk shared by the community of borrowers • Intensive technical assistance
Toward a new finance: Vision for the future • Community-owned • Controlled by members • Community risk sharing • Non-extractive lending • Education & technical assistance