Microfinance USA Updates

Guest Post by Megan Fielding, Account Manager at MicroPlace

Microfinance–it is widely practiced, accepted, and impactful. It has supported entrepreneurs from tiny villages to large cities throughout the developing world --places where we expect microfinance to be. But in the developed world?

Last month’s conference, Microfinance USA, held in San Francisco, California, offered insights on a range of varied topics, from “the history of microfinance” to “innovations in products, strategies and technology”. Panels focused on what is going on domestically with microfinance (especially in California) and also referenced international perspectives. Sprinkled throughout the two days were testimonials and opinions put forth by various borrowers, lenders, nonprofits, for-profit corporations, small and large banks, and academics from well-known American universities. The audience was comprised of over 600 people who fell into these categories, as well as students and “regular” Americans who were there because of a desire to learn more about microfinance.

Having observed, volunteered, networked and worked in the industry for nearly a decade, I have to say that this conference was impressive. Maybe it was the energy that attendees and participants brought & spread while attending the conference. Maybe it was the perspective that the recent global crisis has brought, which has made obtaining loans in the US very difficult or simply impossible for many. Or maybe it was the incredibly positive stories of success that were shared. Or, perhaps it was the food that was served at “Taste of Micro-Entrepreneurship” reception (yum). Ultimately, I’d say that it was the combination of all the above.

I had the good fortune of arriving at the Main Hall at the same time as one of the keynote speakers, First Lady Maria Shriver. She was warm and friendly and when I asked if I could get into the same elevator, she, plus everyone in her group, said “of course!”. I’ve been in other situations where I would have been told it was a security issue and, “could I please just wait for the next one?”. In the opening plenary, Maria engaged in conversation with Premal Shah, the President of Kiva, and also invited two microloan borrowers onto the stage to share their captivating stories. They continually focused on the need for microfinance, and its power to positively impact working families. This hour was followed by the founder of Self-Help, Martin Eakes, who shared the origins of Self-Help with the audience. I don’t think anyone moved a muscle as he respectfully spoke of the sacrifices that his borrowers made-- a family’s effort to afford enough kerosene so that they could heat their homes while he was “visiting”, or the young couple who couldn’t afford healthcare for their ill baby. All of these anecdotes help to tell why Martin does what he does. In my opinion, Martin is a silent hero—someone who talks about others, and so humbly refers to himself and the obstacles he has overcome in order to build an organization dedicated to helping those in need. Self-Help serves as just one example of the many groups that already exist in our country focused on microlending and microenterprise. In other words, Microfinance USA.

A wonderful feature of the conference was the screening of two films: “Faith, Hope, and Capital: Banking of the ‘Unbankable’”, and “To Catch A Dollar”. I attended the latter. There was not a dry eye left the screening room. Or maybe it was the fact that my eyes were so watery I couldn’t see. Either way, this documentary does an incredible job of capturing the story of the founding days and months of Grameen America in Queens, NYC. Its loan officers, its borrowers, the day-to-day challenges of life, the hope that springs eternal—all were captured in the film. There are a number of cuts to interviews with Muhammad Yunus, the founder of Grameen Bank, as well as clips of borrower meetings in India & Bangladesh- in many instances, you not only hear about the changes that small loans have made on a person’s life but you visually see the impact on that person’s life. Enough said. Go see it. I think it will be out in the independent cinemas in September (be sure to bring tissues).

I would say the best part for me was an elective Micro-entrepreneur tour. I joined about 25 other folks on a small van bound for the Mission District in San Francisco. The Mission District is an area here in San Francisco that was first settled by Spanish missionaries in the late 18th century, and later became the home for many Mexican, Central and South American immigrants. As a side-note, it is also famous for its colorful murals which tell the stories of immigration and building a life in a new country. Our tour focused on the businesses of two micro-entrepreneurs. One was a small jewelry store in the outer mission, which was started with a $2,000 microloan. The other, an objects & art shop was started with a $25,000 loan in the more trendy mid-Valencia area. Both businesses were very different in terms of their look & feel and I would guess, client-base. However, the businesses shared very similar stories: each entrepreneur did not qualify for traditional bank loans, but they each had a great idea and a plan for a business within their community. To see those plans through to fruition, both were assisted by the business education, training & mentoring that frequently comes through many microlending organizations. The genuine warmth, towering pride, and smiles these entrepreneurs exuded were, as I looked around at my fellow tour participants, just plain contagious :-)

In summary,
Microfinance USA. Yes!


Megan Fielding, Account Manager
Megan focuses on Account Management and Issuer Services at MicroPlace, Inc. Previously, she spent time In Argentina and Colombia, studying Spanish and microfinance in the private and public sectors. Her career in financial services began in New York City, focusing on the management of pension funds, socially responsible portfolios and managed accounts. Over time, she migrated to the Bay Area, where she held positions in management, sales and client services for several investment management firms and banks. Megan received her BA in economics from Wheaton College, studied advanced economics and fine art at Edinburgh University, and holds financial designations through the Wharton School and IMCA. Megan currently volunteers with The Women’s Initiative and is a member of the Silicon Valley Microfinance Network.