All You Need to Know About Microfinance
Since 2008, HMFI has worked to disburse micro loans to members of the D.C. community, and we’ve been working to constantly grow our impact in microfinance within the DMV area. However, one of our most common questions is, what exactly is microfinance?
Microfinance, or micro loans, is a form of banking services provided to members of communities all over the world who cannot gain funds or resources from traditional banking routes. Microfinance has existed for hundreds of years, yet it began to gain attention in the 1980s as the Grameen Bank was founded to help startup businesses in Bangladesh. Since then, microfinance has flourished throughout the world, including the United States.
This financial avenue has directly impacted over 120 million people by 2021, yet the World Bank has estimated that at least 500 million people have been indirectly impacted by the benefits of microfinance too. Microfinance is specifically crucial to the D.C. community, as many individuals within the area are faced with limited financial resources that traditional banks do not cater to. With over 37,000 businesses with less than 50 employees in Washington D.C. as of 2020, there is a great need for microfinance institutions to support small businesses in the D.C. and greater DMV area.
HMFI has disbursed 13 loans to clients in the DMV area, and our mission is to make sure to provide clients with working capital in order to make a tangible, long-lasting impact. Ranging from a real estate business to a food truck, HMFI has worked for over the past decade to make microfinance and micro loans available to hard-working D.C. small business owners. Whether it be a Small Business Loan or an Impact Loan, HMFI offers D.C. small businesses the opportunity to grow and improve as much as possible!
Georgie Wilson, SFS ’24