Why Microlending in the U.S.?

Microlending—providing access to capital to those who are unable to access bank credit—is becoming an increasingly important strategy for helping low and moderate-income families. 
Income inequality continues to increase in the United States.  Recent IRS data show that in 2005, the top 10 percent of Americans collectively earned almost as much as the bottom 50 percent of Americans.   The poorest 20 percent of the population has only seen their real income increase by about 5 percent in the last 15 years—from $13,900 to $14,700. These families are finding it harder and harder to build a secure financial future—one with stable employment, a living wage, health insurance, savings, and homeownership.  

To gain greater control over their working lives, many families are turning to microbusiness.  Research tells us that at least 1.8 million low income entrepreneurs do not have access to microfinance products.  Here in Texas, the demand is greater than ever.  For the past year, ACCION Texas has been lending over $1 million every month in microloans.  We are disbursing capital as fast as we can get it in! Across the country new and established microentrepreneurs can create stronger businesses and a brighter future with access to capital.