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1. A struggling entrepreneur applies for a microloan While many of the working poor have the ideas and ability to create a small business, few can access the capital they need to begin. Because they are asset poor and in need of only small loans, banks will not lend to them. With little savings to access they are trapped in poverty. The only credit available to them is often from local money lenders who charge exorbitant interest rates. To successfully apply for a VisionFund loan the poor entrepreneur must demonstrate trust worthiness, a good work ethic and a sound business idea. Through VisionFund a community bank is formed from a group of chronically poor entrepreneurs who mutually guarantee each other's loans. |