fund
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Thanks to everyone who participated in the Microfinance Alliance Fund drive! We are now looking for partners to help us with the operations of this program.
Summary:
The Microfinance Alliance is creating a small, sustainable fund to provide microloans to businesses locally and globally.
Details:
The Fund will be managed by Microfinance Alliance volunteers, most of whom are MBA students. We are currently looking for experienced partners to help us with the management.
The Microfinance Alliance will be providing a pilot loan in the West Bank neighborhood of Minneapolis, near our physical location. This neighborhood is unique in many ways, one of which is that it is a hub for new immigrants. There are a number of small, fledgling businesses in this neighborhood that could benefit from debt financing. Students are already interacting with these businesses to better understand their needs and brainstorm with owners regarding potential revenue-generating projects.
Our short-term goal is to raise $2500 to fund a small project. Students will provide pro-bono business consulting services in conjunction with the loan. This is a “proof of concept” period before we scale up operations and start soliciting funding from corporate sponsors.
Timeline:
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Now:
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Raise funds, establish relationships with existing community development centers, and gauge local business improvement opportunities
Begin process of applying for 501(c)3 status for future donations toward fund Once this is complete, we will move on to the next step.
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Months 1-2:
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Develop loan-origination and servicing processes, repayment period, and financial model
Issue a request for applications from local businesses, review applications, and conduct due diligence
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Months 3-4:
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Originate and disburse the pilot loan
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Months 5-16:
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Collect loan payments, monitor the investment, and conduct business consulting services Review loan processes and examine the opportunity to scale up operations Begin soliciting funds from corporate sponsors and other interested community partner
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Long Term Vision: |
Maturity of sustainable fund into a portfolio, offering one local loan per year and adding international funding as sponsorships allow. |
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