13-17yrs, 18 & over, 8-12yrs, blog series, commentary, Education, entrepreneurship, global citizenship, Resources

The Future of Microloan Business Lending and the Vision of Future Executives Inc.



It isn’t a secret that the US and world are experiencing challenging economic times.  Although some might debate our current status given the aftermath of the most recent recession, it is painfully apparent the US could use different forms of economic stimulus to foster job growth.

Moreover, there historically has been a chronic unemployment problem for many young people in this country. Young people tend to experience higher levels of unemployment and underemployment in the country than other groups now and in the past.

Conversely speaking, 75% of new job growth in the US is created by small businesses. However 80% of small businesses fail within 5 years.  As a person who has made his living primarily as an entrepreneur the last 20 years, and have worked with many successful millionaires, I noticed most people who succeed in business have access to some form of capital/funding.

It doesn’t take long once you become an entrepreneur to realize funding or access to capital is the life blood of any growing and developing business.  So it makes perfect sense that a viable funding alternative or source especially targeted towards young people and their families can be a great asset to building livelihoods and businesses for younger people.

Ironically it is very difficult for most small businesses to get loans from traditional banks these days. Even with the backing of SBA guarantees it is hard to get banks to loan to small businesses.  I worked with an SBA Loan broker and saw 1st hand how hard it is for even businesses doing millions of dollars in business a year to get bank loans.  A friend of mine who is a bank manager confided in me “most banks aren’t in the small business loan business anymore because there are safer ways to invest their money.”

Enter Microloan organizations or MLOs. MLOs are nonprofit organizations started with the specific goal of giving loans to small business owners. These loans range from $2,500 to $150,000 depending on the Micro-loan organization’s specific criteria.

Therefore, one of the most visionary and important things we at Future Executives Inc., can do is to create an international nonprofit financial & investment organization or institution focused on helping young people and their families become more financially independent.  This may sound a bit grandiose as a goal but it is very doable and other interest groups and ethnic groups have done it like Accion and Grameen Bank.

These MLOs were started by people with formable economic challenges.  For instance the Latino/Hispanic microloan organization Accion has been able to give more than 12.9 Billion dollars to small businesses worldwide.  Grameen Bank, Started by Muhammad Yunis, giving personal loans out of his pocket, expanded to the point now of giving out Billions in business loans to poor people in Bangladesh.  Grameen Bank is credited with helping to shore up the economic situation in one of the world’s poorest economies in Bangladesh. The MLO is so successful its founder Mr. Yunis was given a Nobel Peace Prize for his efforts and his “bank for the poor” has moved to the US and is currently giving out micro-financing for businesses in the US.

These banks were started by very poor people pooling their money and reinvesting back into the MLO to grow the organization’s ability to expand and give out even more loans. These MLOs have gone international giving business loans more effectively than traditional banks.

Microloan organizations have the distinction of having a 97% loan repayment rate.  Our vision and goals for Future Executive Inc. and its Micro-loan Division and initiative is to build upon the success of the MLO movement and enhance it with informed online technology and marketing.  Together we can take micro-lending to a more cutting edge paradigm with the goal of inspiring and financing global opportunities for our next generation of entrepreneurs.

We are now accepting $5, $10 $20 or more tax-deductible donations here

Spread the love