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※ 번역할 언어 선택

Chairman Ben S. Bernanke
At the ACCIÓN Texas Summit on Microfinance in the United States, San Antonio, Texas
November 6, 2007

Microfinance in the United States

Last month I had the pleasure of meeting with someone very well known to this audience but not so well known to Americans generally: Dr. Muhammad Yunus. Perhaps more than any other individual, Dr. Yunus inspired the movement that has become known as microfinance. In 1976, Dr. Yunus founded the Grameen Bank in Bangladesh, which became one of the pioneers of the concept of offering small loans to people deemed too poor or insufficiently creditworthy to qualify for traditional bank loans.

The organization and the larger movement it helped spawn have financed the entrepreneurial aspirations of many thousands of people. The great majority of those who have benefited from Grameen Bank loans have been women, particularly poor rural women. Microfinance has offered borrowers, in Dr. Yunus's words, "a fair chance to unleash their energy and creativity" (Yunus, 2006). His innovative thinking and dedication to poverty relief through the extension of credit were honored in 2006 by the award of the Nobel Peace Prize. And the movement itself was recognized when the United Nations declared 2005 to be the International Year of Microcredit.1

The microfinance, or microcredit, movement has spread throughout the world--to other parts of Asia, Africa, Latin America, and, more recently, to the United States. Although the social and economic contexts differ widely across countries, the fundamental purpose of microfinance programs remains the same: to offer small loans and other financial services to low-income people to help them increase their incomes through entrepreneurship and self-employment.

Acción Texas has been an exemplar of the movement in the United States. I am very pleased to speak at your summit meeting today for many reasons, not the least of which is the opportunity to visit again with Janie Barrera, the president of Acción Texas. I had the pleasure of working with Janie when she was a member of the Federal Reserve Board's Consumer Advisory Council, which has been an invaluable resource for the Board over the years on all aspects of consumer protection regulation and community development initiatives. Soon after I became a member of the Board in 2002, Janie collaborated with the Federal Reserve Bank of Dallas to invite me and one of my fellow Board members, Susan Bies, to Brownsville, Texas. We toured local housing and community development projects and visited a small business that had gotten its start with the help of a microloan from Acción Texas.

In the remainder of my remarks I will speak about the development of the microfinance movement in the United States, putting it into an international context and discussing as well how it fits into the broader landscape of small business financing in this country. I will close with some thoughts on the challenges facing the U.S. movement as it continues to grow and mature.

The Development of the U.S. Microfinance Movement
Although the United States came relatively late to the microfinance movement, experimentation in the 1980s and 1990s laid the groundwork for the lively network of programs we see today. Acción has been at the forefront of the development of microfinance in the United States. Acción International began its microlending activities in Latin America in 1961 and established an affiliate organization in the United States, Acción USA, in 1991. Over the years, the U.S. Acción network has grown to become one of the country's largest microfinance providers. Since its founding, the U.S. Acción network has loaned $180 million to nearly 20,000 borrowers in thirty-five states.2

Of course, the operational details of U.S. microfinance programs differ significantly from those in overseas programs, but as I mentioned, they share similar goals and core values. As it does in developing countries, the microfinance movement in the United States seeks to expand economic opportunities for individuals and to foster community economic development by providing small loans and other business services to people who have been traditionally underserved by mainstream financial institutions. Loan features--including size, collateral requirements, and repayment terms--are typically more flexible than those of standard bank loans and are tailored to the needs of low- and moderate-income entrepreneurs.

In the United States, however, credit is only one part of the microfinance package. To a greater extent than overseas, microfinance programs here have expanded their offerings to deliver education, training, and various other services to nascent entrepreneurs. The goals of these supplemental activities are twofold: to improve the survival rate of the borrowers' start-up businesses and to mitigate credit risks for the lender. Several factors have driven the U.S. microfinance industry to diversify beyond simply lending. The complexity of the U.S. market for financial services requires greater financial management skills than are typically needed in developing countries. Here, even very small businesses are likely to have to deal with factors--such as taxes, licenses, and zoning laws--that can prove daunting hurdles to the inexperienced, aspiring business owner (Assanie and Virmani, 2006). By contrast, entrepreneurs in developing countries tend to operate in the informal sector, often out of the sight of regulators and tax authorities. Yet another difference between the U.S. context and that of the developing world is that, in the United States, aspiring entrepreneurs may have access to alternative sources of credit. Although they may not be able to obtain traditional small business loans, some can qualify for credit cards, home equity credit lines, or other alternatives to microcredit, whereas many of Grameen Bank's clients in Bangladesh, for example, have no such alternatives. Thus, while lending remains a very important part of U.S. microfinance programs, it is not as central to the broader mission as is typically the case in the developing world.

In helping local enterprises get under way, microfinance organizations help deliver the social benefits often associated with such businesses. For example, microentrepreneurs often involve their family members in their businesses, providing them valuable work experience; and extra income can confer important advantages on future generations, such as a chance for a better education. In addition, entrepreneurs may benefit communities and local economies in multiple ways, as this story of a woman who resides in one of Houston's poorest neighborhoods illustrates. Observing the lack of grocery stores in her community, she approached Acción Texas for funds to open a small organic food store and restaurant. With the help of the microloan, she created a viable business while also improving the options for food shopping in her community. She also provides various services, including neighborhood cooking classes that promote healthy eating habits.

The Place of Microfinance in the Landscape of Small Business Finance
Although comprehensive data on U.S. microfinance as a whole is scarce, many U.S. microfinance institutions measure and track their own performance. Acción Texas, for instance, reports that it loaned $42 million between 1994 and 2005. It estimates that those loans created 982 new jobs and generated about $78 million in economic activity (including earnings of about $25 million and local tax revenue of $4.5 million).3 Thus, despite gaps in the aggregate data, we can get some sense of how microfinance fits into the overall picture of small business finance.

Small businesses, generally defined as firms having fewer than 500 employees, have always played a vital role in the U.S. economy. Together, they employ more than half of private-sector workers and produce more than half of private-sector output (Board of Governors, 2007). The enterprises that microlenders finance are, of course, the very smallest of small businesses, but such firms make up a substantial share of the U.S. small business sector: 20 percent of small businesses in the United States have only one individual working in the firm, and 40 percent have two to four people working. Among these smaller firms, nearly 25 percent were founded or acquired by a new owner within the past four years.

Thus microenterprises not only provide a path to economic self-reliance for owner-entrepreneurs and benefit their local communities, but they are also important for the economy as a whole. There is some truth to the popular image of the successful firm which had its beginnings in someone's garage. Microenterprises can grow into small businesses, and small businesses can grow into large firms. Thus, microfinance plays the role of business incubator by compensating for the difficulties faced by very small firms and startups in obtaining credit from established financial intermediaries. These difficulties arise because lending to small businesses is typically considered riskier and more costly than lending to larger firms. Small businesses are often more susceptible to changes in the broader economy and generally have a much higher rate of failure than larger operations, although the survival rate of small firms increases with age (Knaup, 2005).Collateral may be used to help mitigate the risk to lenders, but the smallest and youngest firms often have few assets available to pledge. Besides being riskier, lending to small firms can be more expensive. It costs more per dollar loaned both to evaluate their credit applications and to monitor their ongoing performance. Many small businesses lack detailed balance sheets and other financial information used by underwriters in making lending decisions. And the small firm does not issue publicly traded debt or other securities whose values in the marketplace serve as a signal of its profit expectations.

Of course, despite these challenges, many smaller businesses do manage to obtain the credit and capital they need. Community banks, which rely on personal relationships and knowledge of the local market to assess credit risks, have long been a source of funding for small business. The development of more-sophisticated techniques in small business loan underwriting, including the use of credit scoring, has helped make small business lending more attractive to larger institutions as well (Cowan and Cowan, 2006). And research demonstrates that internal finance--that is, financing from the personal resources of owners, family, friends, and business associates--can help offset a lack of access to capital and is crucial to both new and established small enterprises (Rosen, 1998; Holtz-Eakin, Joulfaian, and Rosen, 1994a,b). For some potential low-income entrepreneurs, however, none of these options is feasible. Microfinance was designed to bridge this gap.

The Future of Microfinance in the United States
As I have emphasized, microenterprise development programs in the United States are about much more than the extension of credit, though access to credit remains a central concern. Many programs take a holistic approach, offering interconnected services that complement lending activities and are targeted at entrepreneurs at each stage of business development. Services being offered include up-front business training; specialized technical assistance; mentoring programs; sector-specific advice and support; networking opportunities; coordinated sales and marketing programs; and the development of formal links with banks, local community colleges, and other institutions (Edgcomb and Klein, 2005). Of course, many start-up businesses don't make it; that's an inescapable aspect of the risks that small business entrepreneurs face. But the services provided by microenterprise programs offer borrowers a strong foundation in the fundamentals of running a business and give their businesses a better chance to grow and flourish in a competitive marketplace.

These services benefit the lender by making the borrowers more creditworthy, but providing these services to budding entrepreneurs is labor intensive and requires considerable expertise. Because microfinance clients are rarely able to pay for these services, the costs have generally been underwritten by philanthropic efforts and public-private partnerships. Whether U.S. microfinance programs can become financially self-sustaining is a key question for the future.

Currently, microenterprise organizations are experimenting with business models in the effort to promote self-sustainability. Some are trying to enhance their profitability by offering a wider array of fee-based services, such as check cashing and the facilitation of remittances. Others have turned to technology to reduce their costs. Acción USA, for instance, has reduced transaction, underwriting, and servicing costs through an Internet lending initiative.4 It has also reduced its training costs through online and distance-learning courses. Another web-based effort, MicroMentor, matches inexperienced entrepreneurs with more experienced businesspeople, thereby providing important assistance to new business owners at a relatively low cost (http://www.micromentor.org/ Leaving the Board). The Association for Enterprise Opportunity, the principal trade association for microenterprise programs, serves as a forum for learning about innovations, developments, and best practices in this field (http://www.microenterpriseworks.org/ Leaving the Board).

Another promising avenue for the future of microfinance is the development of more partnerships with mainstream banking institutions. Mainstream banks typically don't offer the array of supportive services found at microlenders. But by partnering with a microlender that incubates very small businesses, mainstream institutions can gain new customers when the borrowers "graduate" from the microfinance program and seek larger loans. And these new customers will be more creditworthy borrowers because of the early support they received from the microfinance organization. Acción Texas and other microfinance organizations have established several mutually beneficial partnerships with large banking institutions. Such partnerships serve as two-way referral systems between the microlenders and large banks and help break down the barriers between mainstream institutions and underserved entrepreneurs.

Conclusion
To sum up, I want to affirm the important role that microfinance plays in bringing the opportunity for entrepreneurship to people who otherwise might not have it. Although some businesses will inevitably fall by the wayside, those that flourish and grow are likely to have better management and better long-term prospects than they would have without the support of microenterprise programs. Successful microbusinesses provide jobs as well as valuable products and services to their communities. Not least important, they can provide economic independence and self-reliance for the owner-entrepreneurs. The full benefits of this movement are difficult to calculate. Indeed, one important challenge for the future is to find ways to better measure the impact and cost effectiveness of microfinance programs. What is clear is that the microfinance movement has grown and adapted considerably during its short history in the United States. I hope that microfinance organizations will sustain their energetic spirit of innovation and experimentation as they strive to become more self-sufficient and adapt to our ever-changing economy.



References

Assanie, Laila, and Raghav Virmani (2006). "Incubating Microfinance: The Texas Border Experience," Federal Reserve Bank of Dallas, Southwest Economy (September/October), pp. 3-7.

Board of Governors of the Federal Reserve System (2007). Report to the Congress on the Availability of Credit to Small Businesses. Washington: Board of Governors of the Federal Reserve System, October.

Carr, James H., and Zhong Yi Tong, eds. (2002). Replicating Microfinance in the United States. Washington: Woodrow Wilson Center Press.

Cowan, Charles D., and Adrian M. Cowan (2006). "A Survey-Based Assessment of Financial Institution Use of Credit Scoring for Small Business Lending (690 KB PDF)." Washington: U.S. Small Business Administration, Office of Advocacy, November.

Edgcomb, Elaine L., and Joyce A. Klein (2005). "Opening Opportunities, Building Ownership: Fulfilling the Promise of Microenterprise in the United States." Leaving the BoardWashington: Microenterprise Fund for Innovation, Effectiveness, Learning and Development (FIELD) at the Aspen Institute, February, www.fieldus.org/Projects/MovingForward.html.

Holtz-Eakin, Douglas, David Joulfaian, and Harvey S. Rosen (1994a). "Entrepreneurial Decisions and Liquidity Constraints," Leaving the Board RAND Journal of Economics, vol. 24 (Summer), pp. 334-47.

_________ (1994b). "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Leaving the Board Journal of Political Economy, vol. 102 (February), pp. 53-75.

Knaup, Amy E. (2005). "Survival and Longevity in the Business Employment Dynamics Data," Monthly Labor Review, vol. 128 (May), pp. 50-56.

Rosen, Harvey S. (1998). "The Future of Entrepreneurial Finance," Leaving the Board Journal of Banking and Finance, vol. 22 (August), pp. 1105-07.

Yunus, Muhammad (2006). "Nobel Lecture," Leaving the Board acceptance speech delivered at the Nobel Peace Prize ceremony, Oslo, December 10, www.nobelprize.org/nobel_prizes/peace/laureates.

Footnotes

1. Additional information is available on the United Nations website, "International Year of Microcredit," www.yearofmicrocredit.org. Leaving the Board

2. Acción USA, About Us: Our Impact, Leaving the Board www.accionusa.org/site/c.lvKVL9MUIsG/b.1388811/k.46F7/ACCIONs_Impact_on_Small_Businesses.htm.

3. Acción Texas, "Economic and Community Impact of Acción Texas, 1994-2005," Leaving the Board www.acciontexas.org/economic_impact_report.php.

4. Acción USA, Get a Loan Leaving the Board, https://secure.accionusa.org.

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검찰 수사권, 72년만에 막 내려 [서울=뉴스핌] 박찬제 기자 = 정부가 4일 국무회의에서 검사의 보완수사권 폐지를 핵심으로 한 형사소송법 개정안을 심의·의결했다. 1954년 형사소송법 제정 이후 72년간 이어졌던 검사의 수사권은 완전히 사라지게 됐다. 이재명 대통령은 이날 청와대에서 34차 국무회의를 주재하며 이같은 내용을 담은 형소법 개정안을 원안대로 심의·의결했다. 이를 포함해 25건의 법률공포안이 국무회의를 통과했다. 형소법 개정안은 검사의 직접 수사와 보완수사권을 전면 금지하는 내용이 핵심이다. 검사는 사법경찰관에게 보완수사를 요구할 수 있는 권한만 갖는다.  이재명 대통령이 4일 청와대에서 34회 국무회의를 주재하며 발언하고 있다. 2026.08.04 [사진=KTV] ◆중대한 위법수사·소추재량권 현저 일탈 '공소기각'  보완수사를 요구 받은 경찰은 요구받은 날로부터 1개월 안에 보완수사를 마치고 그 결과를 검사에게 알려야 한다. 수사 기간은 필요에 따라 최대 1개월 연장할 수 있다. 수사 과정에서의 모든 자료는 형사사법정보시스템(KICS)에 기록해야 한다. 범죄 피해자 보호를 위한 장치도 추가했다. 경찰이 사건을 불송치할 경우 고소인이나 피해자, 고발인이 이의를 신청할 수 있도록 했다. 이에 필요한 사건 기록 열람·등사 권한도 부여했다. 개정 형사소송법에는 ▲중대한 위법수사에 기해 공소가 제기됐을 때 ▲소추재량권을 현저히 일탈해 공소가 제기됐을 때 법원의 공소기각 판결 사유로 추가했다. 이같은 내용의 개정 형소법은 중대범죄수사청(중수청)과 공소청이 출범하는 10월 2일에 맞춰 함께 시행된다. 이 대통령은 그간 검찰의 보완수사권은 범죄 피해자 보호를 위해 예외적으로 존치할 필요가 있다는 입장을 견지하며 충분한 숙의를 요청했었다. 하지만 보완수사권 폐지가 당·정·청 불화와 집권 여당인 더불어민주당 내 계파 갈등으로 번지자 논의를 당에 맡겼다.  이후 민주당이 당론으로 보완수사권 폐지를 의결하고 국회 본회의에서 처리함에 따라 이 대통령은 재의요구권(거부권) 행사 없이 개정 형소법을 원안 그대로 심의·의결했다. 이재명 대통령이 4일 청와대에서 34회 국무회의를 주재하며 발언하고 있다. 2026.08.04 [사진=KTV] ◆집권 여당 민주당 8·17 전당대회 진행 중 전격 처리  특히 민주당의 차기 지도부를 선출하는 8·17 전당대회가 진행되는 상황에서 민주당의 강경 지지층 사이에서 보완수사권 전면 폐지 목소리가 컸다.  이에 따라 친명(친이재명) 김민석 당대표 후보에 부정적인 영향을 미칠 수 있다는 관측 속에 이날 보완수사권 전면 폐지를 골자로 한 형소법 개정안이 국무회의를 통과했다.  이 대통령은 이날 법안 심의 전 모두발언에서 "이 법률안이 위헌과 집행 불능, 국익 위배, 행정부 고유권한 침해 등 국회의 입법권을 부정할 만큼 심각한 상황이라고 보기는 어렵다"며 "거부권(재의요구권) 행사라고 하는 게 의견이 다르다고 할 수 있는 것은 아니다"라고 명확히 선을 그었다.  이 대통령은 "삼권분립 원칙에 따라 상대의 권한 행사 자체가 삼권분립에 위배되거나 헌정 질서에 위반된다고 해야 상대의 권한과 권능을 부정할 수 있다는 게 헌법학회 의견"이라며 "지금 상태로는 입법권을 부정할 정도에 이른다고 보기 어렵다"고 거부권 행사 불가 이유를 설명했다.   이날 국무회의에선 9회 지방선거 투표용지 부족 사태와 관련해 국민참정권 침해 의혹 진상규명을 위한 특별검사 임명에 관한 법률안(선관위 특검법)도 의결했다. 지난 6·3 지방선거에서 발생한 투표용지 부족 사태를 비롯한 선거관리 부실 의혹 진상을 규명하기 위한 특검이다. 특별검사는 국민추천위원회를 통해 추천된다. 특검팀은 모두 165명 안팎 규모로 꾸려지며 준비 기간을 포함해 최장 170일간 활동할 수 있다. pcjay@newspim.com 2026-08-04 14:21
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서울 첫 폭염중대경보 [서울=뉴스핌] 유재선 기자 = 서울 전역에 사상 처음으로 폭염중대경보가 내려지는 등 극심한 폭염이 수도권과 전라권 곳곳으로 확산하고 있다. 기상청은 4일 오전 11시를 기해 서울 전역에 폭염중대경보를 발효했다. 서울에 폭염중대경보가 내려진 것은 이번이 처음이다. [서울=뉴스핌] 장동규 기자 = 서울 전역에 '폭염중대경보'가 내려진 4일 서울 여의도 버스환승센터 앞 도로에 아지랑이가 피어오르고 있다. 2026.08.04 jk31@newspim.com 경기(고양·안성·파주남부·용인동북부·용인서북부·여주동남부·여주서부·오산·하남), 전북 전주, 전남(장성·곡성북부·곡성남부·순천·보성·여수·광양), 광주(광주동부) 등 수도권과 전라권 곳곳에도 폭염중대경보가 발효된 상태다. 폭염중대경보는 올해 신설된 폭염특보의 최상위 단계다. 일 최고체감온도가 35도 이상인 날이 이틀 이상 관측된 지역에서 하루라도 최고체감온도 38도 이상 또는 최고기온 39도 이상이 예상될 때 발표된다. 이날 오후 1시 기준 폭염중대경보 발효지역 일최고기온은 ▲가남(여주) 37.9도 ▲기흥구갈(용인) 37.5도 ▲금천(서울) 37.3도 ▲서운(안성) 37.3도 ▲광명노온 37.1도 등이다. 전라권에서도 ▲완산(전주) 37.9도 ▲조선대 38.3 ▲광양읍 38.0 ▲황전(순천) 37.7 ▲석곡(곡성) 37.3 ▲여수공항 37.1 ▲광주 36.7도까지 기온이 치솟았다. 기상청은 폭염중대경보가 내려진 지역에서는 필수 업무 외 모든 야외활동 즉시 중단을 권고하고 있다. 또 무더위쉼터와 그늘 등 시원한 곳으로 즉시 이동하고 수분을 충분히 보충하라고 권하고 있다. jason14@newspim.com 2026-08-04 13:49
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