Notes From the Field With GA Intern Alexandra from St. Johns University

Grameen America has partnered with St. Johns University & the Ozanam Scholars for the second year. This year, Ozanam Scholars are working with Grameen America Center Managers in the field in New York City. Take a look at Alexandra’s first blog post and be sure to check back weekly to see what she’s up to!


Hey everyone. I’ve been interning for Grameen for about two weeks now and already my experiences have been interesting. Last Monday my fellow intern Annysa and I went out into the field, handing out flyers—trying to connect with potential clients.

I’ll be honest I was intimidated at first. I’m not a native Spanish speaker. I learned it in high school and let me tell you that that type of Spanish is not how most people actually talk. Adjusting to speaking like a native speaker and being able communicate with people is going to take me a little time but it’s absolutely worth the effort.

I already love getting out and meeting people, listening to their aspirations and trying to help them. I was only handing things out for a few hours, but I feel like I’m working for something bigger than myself—towards a greater good. I can’t wait until I really learn how to do this job well.

Borrower Meeting

In my last post I described my legal internship at Grameen America, an organization dedicated to combating poverty by providing micro-loans to low-income entrepreneurs.

This morning I woke up before the sun rose to attend a borrower meeting in the far off land of Jackson Heights, Queens. The borrower meeting was at 6AM, necessitating waking up around 4AM. Seeing Midtown nearly empty is a strange sight. It had a certain I Am Legend-style feel to it.

The borrower meeting was located in one of the borrower’s homes. About twenty borrowers meet at the woman’s apartment each week to make repayments to a loan officer who visits several borrower groups around the city each day.

Unfortunately, the branch manager had given me the wrong address. I quickly realized this after the family whose doorbell I rung at 6AM was not too pleased to see me. After that fun conversation, and waking up my supervisor to get accurate directions, I discovered the meeting was in the building next door.

I’d seen the set up before, just not in a room with electricity. I was surprised to see the borrower meeting in Queens was strikingly similar to one I’d seen before in the Dominican Republic. The borrowers sat together in a small room, chatting with each other about their businesses, waiting to make their repayments to the loan officer, trying to keep their bored children entertained. One by one they gave their repayments to a loan officer sitting at a table, a large ledger in front of her. The officer would count the money three times, sign off on the ledger, make small talk with the borrower about her business’s progress, and call up the next borrower. Borrowers who made their repayments stood in the hall of the apartment building, waiting for their group-mates to finish business.

I was shocked to see the similarities with microfinance borrower meetings I had witnessed in the Dominican Republic. I imagined cultural differences or at the very least the microfinance institution’s borrower meeting organization would have made the meetings dissimilar, but the meeting ran as I had seen it before.

The only noticeable difference in borrower meetings was the lack of singing at the Queens meeting. The microfinance institution I worked with last summer in the DR was a Christian NGO, so each borrower meeting included a prayer and a song. While Grameen America is not affiliated with any religious organization, I doubt very much the neighbors would have tolerated a chorus so early in the morning.

“Why 6AM?” I asked the loan officer.

“They have no excuse not to be here,” she replied bluntly. “After the meeting the borrowers go off to run their businesses for the day.”

Grameen America

This summer I’m working for Grameen America, a non-profit microfinance institution based in the United States. Grameen America provides small loans to low-income entrepreneurs (mostly women) to operate small businesses with the goal of helping them lift themselves out of poverty. Grameen provides loans to the people banks won’t lend to, either because they don’t have collateral or because they are “uncreditworthy” from the bank’s perspective. Yet, our 3,500 borrowers have proven their creditworthiness, with an average repayment rate of over 97% since our founding (significantly higher than traditional bank repayment rates).

Our model is based on that of our sister organization, the Grameen Bank. The Grameen Bank was started in the 1970s by Professor Muhammad Yunus in Bangladesh. After seeing villagers perpetually indebted to local moneylenders, Yunus lent them $27 from his own pocket. Thirty years later, with an astonishing repayment rate of 97%, Yunus has demonstrated that the poor, when given the opportunity, do pay back. For his efforts to combat global poverty, Yunus was awarded the Nobel Peace Prize in 2006.

While New York City is not Bangladesh, it is still ripe for microfinance. As in Bangladesh, there are poor people with no job opportunities and no access to credit, especially given the economic climate. The local moneylenders of Bangladesh have been replaced by check cashers, payday lenders, and pawn shops. So far, with 3,500 borrowers and ever-increasing demand, we’re just getting started.




In my capacity, I am helping Grameen America in its statewide expansion. While many developing countries implementing microfinance programs have very vague or informal banking regulations, each state/territory has its own idiosyncratic regulations to comply with. So, how we can start lending in D.C., for example, if D.C. requires special lending licenses and surety bonds? Or, how do we deal with usury laws? Each state has usury laws designed to prevent lenders from charging excessive interest rates and preying on borrowers. However, our organization needs to charge 15% to achieve sustainability and cover its costs. This is because it’s a lot more expensive to administer one-hundred $1,500 loans than a single $150,000 loan, which is generally why banks don’t provide these kinds of loans. So, I have to address these issues, looking at the nuances of state banking law.

Not entirely legally-related, I found that my video-editing skills from my past life have served me well. If you’re interested in learning more about our borrowers, see our YouTube page where I’ve posted some borrower interviews. My favorite project thus far has been creating a video birthday card for Professor Yunus, who recently turned 70.

Last week, Grameen America held a borrowers market in TriBeCa where dozens of our borrowers showed up to sell their wares to the community. Borrowers sold everything from empanadas to jewelry. It’s really impressive what some of these borrowers have done with $1,500 loans. One borrower, Nicole Gates, started Soul Sister Quisine, a catering business specializing in soul food and really tasty red velvet cupcakes. She used her $1,500 Grameen loan to purchase equipment for a cart so she could sell her food at street fairs. Currently, she’s doing extremely well, having fully repaid her last loan, and is now using a second loan to expand her business.

Inside Grameen America - Rakhi Patel

Ms. Patel joined Grameen America as Director of Development from the law firm Skadden, Arps, Slate, Meagher & Flom LLP where she will be an associate in the New York office in October 2010. At Grameen America, Ms. Patel focuses on expansion strategy and development.

How did you first hear about Grameen America?

I knew there were Grameen operations all over the world, but had not realized until last year that there was one focused on alleviating poverty in the U.S.
I first learned about Grameen America through my law firm Skadden Arps, Slate, Meagher, and Flom LLP. When the economic downturn occurred, the firm offered attorneys a nonmandatory "sidebar" program to pursue other interests for one year before coming back to the firm. Skadden Arps is one of Grameen America's pro bono partners, so I was able to get an introduction through one of the Skadden advisory board members.

What does Microfinance mean to you?

Microfinance means providing a hand up, not a hand out.

Why do you believe in Microfinance as a method to alleviate poverty?

I believe that microfinance, implemented through a social business model rather than a profit-maximizing entity, has the ability to give people living below the poverty line the ability to help themselves integrate into the mainstream financial system. Ultimately, people must believe in themselves first in order to attain their goals. Microfinance done properly gives people living below the poverty line a fair shot at the American dream.I also believe, though, that access to affordable financial products is only one piece of the puzzle to help alleviate poverty. The day-to-day reality for people living below the poverty line is that they have many needs--financial, dietary, health, education, etc.--so no one entity will be able to solve all of these problems at once. Grameen Bank in Bangladesh has operated for over 30 years and now helps people with issues beyond that of access to low-cost investment capital. I hope to see the same for Grameen America in years to come.


How do Prof. Yunus’ beliefs empower you in your daily work?

Professor Yunus believed in his ability to help poor people despite all the naysayers around him. At minimum, it made me realize that you have to believe in yourself because there will always be people to secondguess your efforts. If something is broken, you can fix it if you believe in yourself and work hard enough.

Where would you like to see Grameen America 10 years from now?

I would like to see Grameen America operating in every major city in the U.S. I would also like to see it branch out its product offering beyond that of microloans for investment capital to loans for affordable housing and children’s education, among other areas.

What do you like most about Grameen America?

I like that Grameen America views itself as a social business rather than as just a nonprofit organization. We must be held accountable for making smart business decisions, as the ability to be self-sustainable and not reliant on donations in the long run is what will help our borrowers the most.

What keeps you excited about coming in to work every day?

I like spending my day with a group of intelligent, motivated, and fun individuals. Ultimately, all of our efforts translate into actual results for thousands of people every day.

The Grameen Bank Experience

Shah Newaz, our Senior Vice President and General Manager at Grameen America, will offer a lecture at Stony Brook University this Wednesday, April 7.

Mr. Newaz will share the historical background of the Grameen Bank Project in Bangladesh from 1976, and recent updates, based on his experiences working for Grameen Bank in Bangladesh for 25 years, the Grameen replication program in the Dominican Republic where he worked for two years, and the most recent developments of starting up Grameen America Inc. in New York and Nebraska. Mr. Newaz has over 25 years experience with Grameen as a manager with global experience in establishing Grameen businesses.

Shah Newaz shares Grameen America and Nobel Peace Prize recipient Muhammad Yunus mission. He works to alleviate poverty and spur entrepreneurship by providing small loans, savings programs, credit establishment, and financial education to people living below the poverty line in the United States.

From Bangladesh to the World

Written by Luis Varela...


“Grameen Moves into Mexico with Carlos Slim Foundation” is the title of the press release posted on Thursday October 30, 2008 by microcapital.org. After reading the online article, an inevitable smile popped out of my face. It was exciting to read that the Mexican population will now have the opportunity to break free from that poverty cycle as many others have done it through microfinancing all over the world. Being a Mexican-American, I have seen the extreme poverty that exists and the need for a high-quality lending institution. It is depressing to learn that this developing nation has as its immediate neighbor the wealthiest country in the world and it was about time that a group of conscious people intervened. Mexico needed help and Muhammad Yunus and Mexican magnate Carlos Slim responded. Grameen-Carso, as the alliance is named, follows the Grameen method, which has proven to be extremely successful.

Grameen’s expansion has become a global phenomenon. As I write this blog, the new Grameen-Aval Colombia Corporation is becoming a reality. Grameen Bank in association with Luis Carlos Sarmiento Ángulo Foundation will begin to open branches all over Colombia to promote microcredit and raise the quality of life of many Colombians. Many of the benefitted will be the abundant street vendors who will obtain loans to improve or start their businesses. Trained professionals have arrived from Bangladesh to Colombia to give grounding in the Grameen method starting in Ciudad Bolivar in the Colombian Capital of Bogota. Grameen-Aval Colombia has high expectations with 15,000 credits projected nationwide ranging from 100 to 1,000 dollars in the first stage.

I am not surprised by the rapid growth that the microloan giant is going through, after all, I have experienced firsthand the diligence and dedication that the Grameen Team has towards expansion. After a semester of interning at Grameen America, I have participated in expansion projects such as searching for new branch offices, demographic data analysis, and even designed a project for Grameen America Day, a special day dedicated to celebrate Grameen America’s success. It has been a pleasure to work with such passionate people who are always innovating and creating ways to make microcredits more accessible to all kinds of people. The concept behind this nonprofit institution is inspiring and has become a turning point in many people’s lives, including mine.

My Days as an Intern

Written by Christopher Honess...

Moving to New York City from small Syracuse, NY was a huge step for me. I had seen the effects of poverty on people in my hometown, but stepping into New York City as a freshman in college really opened my eyes to a whole new world. I had seen poverty in the Dominican Republic but did not believe that it existed on a large scale in the United States. My first day as an intern at Grameen America, a microfinance organization serving New York’s poor, was an even greater shock. In my internship I would be working at Grameen America’s main office, helping in whatever ways possible, but as an orientation, we first stopped by the Jackson Heights office. This stop would clue me in on what really made Grameen America work and ultimately succeed.

Above a laundromat on Roosevelt Avenue, the Jackson Heights Branch is right in the middle of the “hustle and bustle” of Jackson Heights’ mainly Hispanic population. A walk up one flight of stairs reveals the key to the Grameen success worldwide. Business as usual at the Jackson Heights Branch consists of about five office desks positioned around a small room. Chairs were strewn throughout the room, people working, speaking Spanish to one another, and conversing with borrowers. The environment of the room was warm and inviting. As I introduced myself, they were very welcoming as they smiled and offered me a seat. After this encounter I recognized that this environment is what has made this organization so great and why they have had such an impact on people’s lives.

Borrowers are comfortable coming into such a setting. The group meetings that each borrower must attend usually take place in salons and borrower’s apartments. The few meetings that I have sat in on are informal and easy to attend. The branch and group manager are cordial with the ladies. Not only do they take care of money matters, but they ask each one how her business is going and how family life is. The branch is comfortable. It is a place where they can come in, off the street, and feel like they are “at home”. They do not need to be someone else. They can be who they are and ask for help from someone who is just like them, who has struggled in the same way and who has succeeded in fighting their own poverty. The center managers with whom they work are passionate about their work. They love to help others, just like themselves, escape from poverty. Most of all, these selfless individuals from Grameen America are thrilled to give people a chance to build a life for themselves.

Grameen America is expanding. They have over 1,700 borrowers and just over my quick Christmas break they have opened two more branches. This success, which I have seen, is from the unusual way with which they go about business. Grameen America finds that informality in the banking world is what brings success. Nobel Peace Prize Winner Muhammad Yunus founded Grameen on the idea of the “village” bank, and even in fast and formal New York City, they hold true to that value. They see community as the attribute that sustains their vision for the poor.

A Life Changed

A member's story on how a loan changed her life for the better.

It has been an exciting year at Grameen America. We’ve been growing steadily since opening our first branch in Queens in early 2008 – we have reached over 1,350 borrowers, expanded into new markets with many more on the way, and have lent more than $2.9 million in micro-loans with a repayment rate of 99%.

It’s been a year of accomplishments….but if you were to ask any of us what makes us the most proud, it’s hearing how our borrowers’ lives have changed for the better.

Just the other day, one of our members related to us the kind of experience that reminds us that the work we are doing is truly worthwhile.

A few months back, one of our members was at a store buying a cell phone for her daughter. Just as she was about to purchase a plan, she was told by the salesperson that starting a contract with the vendor would require a credit check. Her heart sank – for years, she had dealt with the hurdle of not having a credit score. And without a credit score, she wouldn’t be able to buy the plan she wanted for her daughter, even though she was now able to afford it.

As she listened to the salesperson rattle off the limited and expensive pre-paid options available to her, she thought back on her center meetings with Grameen America….didn’t the center manager say that her loan with Grameen would help her build a credit score? She meekly mentioned to the salesperson that she might have a credit score after all – could he please check? The salesperson checked for her – and not only did she have a credit score, the score was over 750.

It may seem like a small thing – the ability to buy a cell phone. But for our members, these seemingly small wins represent so much more…..a chance to participate in the same opportunities that many of us take for granted, a chance to pull oneself up through one’s own ingenuity, a chance to change one’s own life.