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.