What is Grameen America?

Grameen America is a nonprofit microfinance organization that empowers underserved women to build small businesses and better lives for their families. Grameen America offers affordable loan capital, a peer network of support, business development training, asset-building, and credit development tools to impact and improve emerging businesswomen’s income, credit scores, and personal savings.

Why does Grameen America implement a group model? What are its benefits?

Grameen America’s model is a proven, community-based solution to advance financial inclusion for women. Our products and services are designed to deliver an evidence-backed, viable pathway to expansion and economic sustainability for underserved communities. Through our social capital model, Grameen America offers a holistic approach and 360-degree platform for microlending.

The group model builds a network of like-minded entrepreneurs, each lifting their fellow entrepreneurs up in the pursuit of their individual journeys. This network becomes a strong support system throughout a member’s entrepreneurial journey. Social capital also acts as support for underwriting our loans by maintaining close communication ties with each other, knowing and verifying each others’ businesses, and supporting each other through input and business support.

Is Elevate by Grameen America different from Grameen America?

Elevate by Grameen America, aims to meaningfully address barriers and funding gaps that all women in predominately Black communities face. Elevate by Grameen America is an initiative of Grameen America; we are not a separate entity. We increase women's financial mobility by extending our proven approach of engaging with and lending directly to women entrepreneurs. 

Does Grameen America charge a fee for its program?

Elevate by Grameen America does NOT charge a membership, entry, or loan origination fee. There is never an entry or origination fee to join Elevate by Grameen America or to renew your loan. Your only payment is your weekly installment amount, which includes principal and interest. If a member or staff member requires you to give them money to receive your loan, please report them to info@grameenamerica.org immediately.

We use a third-party payment vendor called PayNearMe, which enables convenient payment channels. The vendor charges a fee that varies based on the type of channel used. This fee is charged directly by the vendor and not by Grameen America.

If a current Grameen America member invites me to join Grameen America, do I need to pay them?

Grameen does not charge a fee for its programs or services. Thus, you should never pay anyone when seeking to join Grameen America. If someone asks you for payment to be part of their group or center, please immediately report them to your Community Development Associate, Outreach Coordinator, Branch Manager, or info@grameenamerica.org.

Will I be able to invest in whatever I want?

Funds received through the Elevate by Grameen America must be used by you to either start a business or help you grow an existing business. We encourage members to invest in business expenses that will directly support revenue generation. With the revenue generated and profits, indirect business expenses can be covered. 

Do I need to invest my loan with the person inviting me to join Elevate by Grameen America?

No, you must invest 100% of your loan in your business or income-generating activity.

Does Elevate by Grameen America help build my credit?

Elevate by Grameen America does not require a previous credit history, credit score, or background check to join the program. However, we help members develop credit by reporting all payments to two major credit bureaus, Experian and Equifax. All loan transactions are reported to the bureaus by the 15th of the following month. You will not see updates to your balance on your credit report until after the 15th of the subsequent month.

The loan will be one input to an improved credit score and, with a strong repayment history, will support credit development. Good financial management across all obligations will be key!

Can I pay off my loan sooner?

Yes, there is no penalty for paying off your loan sooner than 25 weeks. However, the next loan will be disbursed after a minimum of 23 weeks from the prior disbursement. A new loan will not be disbursed before 23 weeks, even if the current loan is paid off sooner. We highly encourage members to continue participating in weekly center meetings at the end of the cycle and even between cycles. You will receive a loan disclosure at the time of your loan disbursement that outlines your weekly installment amount for the duration of the loan cycle. 

What are the requirements for joining Elevate by Grameen America?

To join Elevate by Grameen America, all members must be part of a group of five (5) like-minded women entrepreneurs and must submit :

• Government-issued photo identification (i.e., driver’s license, state ID, or passport)

• Proof of address issued within the last 60 days (utility bill, medical bill, paystub, or phone bill)

All members must commit to paying their weekly loan installment and attend weekly center meetings as scheduled by the group and center and follow Grameen America’s policies and procedures. 

Further, members must complete:

• Budget worksheet

• Verification of physical residence within the branch boundaries 

• New Member Profile – staff will complete while in-person with you

• Member Commitment & Acknowledgement Form 

Some branches require members to meet in person at the branch for all onboarding activities and loan disbursements.

What is the timeline for onboarding and getting my loan?

Timing varies by location, but typically, members can expect to complete onboarding and receive their disbursement in about four weeks from the time of the completed information session. This includes time to form your group and complete the onboarding requirements. The process could be longer if the member has challenges forming her group of at least five women. 

Why are the home and business visits necessary for Elevate by Grameen America onboarding?

At Grameen America, we have always practiced our principle of “going to the member,” which includes home and business visits. Home or business visits allow Elevate by Grameen America staff to get to know you in an environment most comfortable for you. This interaction helps facilitate one-on-one communication and establish trust between  staff and the member. During the time in the home or business, staff completes the new member profile and loan application, verifies the physical address, observes business activities if present, and captures all required images of the member’s documents. 

Why does Elevate by Grameen America need to verify the utilization of my loan?

The Elevate by Grameen America microloan is meant as working capital for income-generating business activities only. As a demonstration of accountability to their group and center and to meet reporting requirements from our funders, members are expected to show proof of investment based on the reasons provided for the loan purpose. Grameen America needs to complete the loan utilization check to:

• Verify the appropriate use of funds, including proper loan investment, as soon as possible after loan disbursement

• Ensure members make financially sound investments and begin generating income right away

• Help members begin business planning by determining loan investment before receiving loan disbursement
  

What types of businesses are allowed?

Elevate by Grameen America lends to all types of legal businesses. We are inspired by our members’ entrepreneurial abilities to start, grow, and run successful businesses. Usually, a center will have a mix of different business types. 

We do not advise members about their business choices or refuse loans based on business type—as long as members can prove their funds are being used for business purposes and the business is legal. It is our experience that members know how best to use their business loans and the type of business they believe will be successful for themselves and their families.

Can I join Elevate by Grameen America with family members?

At Elevate by Grameen America, we ensure a fair membership application process. Only one member of a household can apply, and close relatives, such as mother/stepmother, daughter, sister, mother-in-law, grandmother, and aunts, are not allowed to become members of the same Elevate by Grameen America group. This policy is in place to maintain fairness and equal opportunities. Please note that submitting an application does not guarantee acceptance to the program.

Where do I find detailed information about my loan and payments?

With the MyGrameen member app , you can take ownership of your business journey. Manage your current loan details, payments, new loan requests, attendance, and more. Your Community Development Associate, Outreach Coordinator, or Branch Manager can help get you started.

Are members allowed to promote their paid services with other members and receive payment from those members from their loan? 

Technically, members can use their Elevate by Grameen America loan to pay for any business-related expenses. We recommend that members invest the loan in expenses that will directly generate revenue, e.g., products to sell, rather than computers or a conference. We encourage members to patronize other members' businesses within the Elevate by Grameen America network and pay for products or services. Elevate by Grameen America staff should not actively participate in promoting a member's paid services to other members to maintain impartiality.