MSW 547 Week 2: Applying International Assistance Approaches (Grameen Micro-Lending Pilot Proposal Presentation)

MSW 547 Week 2 Assignment: Applying International Assistance Approaches to a U.S. Community Context

Scenario: as Director of Community Outreach at a Community Action Agency, you explained to the Executive Director the difference between Brazil’s Bolsa Família conditional cash transfer program and the Grameen Bank’s micro-lending program. A donor will now fund a one-year pilot based on one of them for 25 to 50 clients from one or more populations: people experiencing poverty, women, children at risk, seniors over 65 or people affected by a disaster. Present your answers visually (Canva or PowerPoint), clearly and persuasively, with in-text citations and references no more than five years old unless historical or seminal.

• Section 1: describe the program you chose (what it does, whom it serves, goals and accomplishments); describe your community and 2 to 3 reasons that program fits it better; explain how it aligns with social work values better than most agency assistance; and name the program.
• Section 2: describe whom the pilot will serve and why; define two measurable goals; specify the financial assistance; and write a one-paragraph summary explaining how it removes barriers and furthers self-determination.
• Section 3: visual presentation with in-text citations and references.

Original example for study purposes (about 1,370 words of slide text and notes). Southgate is a fictional community; replace its profile with your own community and local data, and adjust loan amounts to local costs.

Slide 1: SEED Circles: A Micro-Lending Pilot for Women Entrepreneurs in Southgate

Applying the Grameen Bank model to a U.S. community
Presented to the Executive Director by [Your Name], Director of Community Outreach | MSW 547 | [Date]

Slide 2: Section 1: The Grameen Bank Model (Review and analyze a program)

• Founded as a 1976 village pilot by Muhammad Yunus; became a bank in 1983 in Bangladesh
• Collateral-free small loans, mainly to women living in poverty, through peer groups
• About 10.6 million borrowers, 97% to 98% women, in 94% of Bangladesh's villages
• Shared the 2006 Nobel Peace Prize with Yunus; recovery rate about 96% (Grameen Bank, n.d.)

Notes: The Grameen Bank began in 1976 when Muhammad Yunus lent US$27 to 42 families in Jobra village and became a formal bank in 1983. It provides collateral-free microloans, primarily to poor women, through small peer groups that meet regularly and support one another. Today it serves about 10.6 million borrowers, nearly all women, through more than 2,500 branches in about 94% of Bangladesh's villages, and it reports a loan recovery rate near 96%. Grameen and Yunus shared the 2006 Nobel Peace Prize for promoting development from below (Grameen Bank, n.d.).

Slide 3: Grameen Comes to the U.S.: Grameen America (Review and analyze a program)

• Since 2008; 38 branches in 29 U.S. cities (2024)
• More than $5 billion in loan capital to women entrepreneurs; 99% repayment
• Groups of 5 women, weekly meetings, first loans up to $2,500, 6-month terms, credit reporting
• MDRC randomized evaluation: more business ownership and earnings, less material hardship, more women with credit scores

Notes: The model has already been adapted in the United States. Grameen America has disbursed more than $5 billion in loan capital to women entrepreneurs with a 99% repayment rate (Grameen America, n.d.-b). Members form groups of five, complete five days of training, meet weekly and receive first loans of up to $2,500 that are repaid over six months and reported to credit bureaus (Grameen America, n.d.-a). A randomized evaluation by MDRC found that the program increased business ownership and business earnings, reduced material hardship and increased the share of participants with credit scores (Quiroz Becerra et al., 2020; Schaberg et al., 2022).

Slide 4: Our Community: Southgate (Fictional) (Community profile)

• Mid-sized Midwestern neighborhood of about 18,000 residents
• 28% of residents live in poverty; 40% of households headed by single mothers
• Many women run informal businesses (childcare, food, hair, cleaning, sewing)
• Few banks; payday lenders and check-cashing stores fill the gap
• Strengths: churches, a community college, a farmers market and strong social networks

Notes: Southgate is a fictional neighborhood used for this proposal. It has about 18,000 residents, a poverty rate of 28% and many single-mother households. Many women already earn income informally through childcare, catering, hair braiding, cleaning and sewing, but they lack access to affordable credit because of thin or damaged credit histories. Bank branches have closed, and payday lenders charge very high fees. Community strengths include active churches, a community college with small-business classes, a farmers market and strong neighbor networks, which are exactly the kind of social capital that peer lending depends on.

Slide 5: Why Micro-Lending Fits Southgate Better Than Conditional Cash Transfers (Program fit)

• Builds on existing informal businesses and entrepreneurial skills
• Builds credit and banking access, reducing reliance on payday lenders
• Loan capital is repaid and recycled, so a fixed donor gift can serve more women over time
• Peer groups strengthen social support, which the evaluation linked to reduced hardship

Notes: There are three main reasons micro-lending is a better fit than a conditional cash transfer for Southgate. First, many women already run small businesses and need working capital, not only income support. Second, credit reporting helps women build credit scores, opening doors to safer financial products and reducing reliance on predatory lenders. Third, because loans are repaid, the donor's investment can be recycled to reach more women, supporting the goal of expansion after the pilot. Peer groups also build social support, which MDRC identified as one possible reason for reduced hardship (Quiroz Becerra et al., 2020).

Slide 6: Alignment With Social Work Values (Social work values)

• Dignity and worth of the person: women are treated as capable entrepreneurs, not as cases
• Self-determination: participants choose their own businesses and goals
• Social justice: addresses exclusion from mainstream banking by gender, race and income
• Importance of human relationships: peer groups and mutual support

Notes: Most assistance from social service agencies is means-tested, restrictive and focused on deficits, often requiring clients to prove need repeatedly and limiting how they can use help. The Grameen model aligns more closely with the NASW Code of Ethics (National Association of Social Workers, 2021). It honors the dignity and worth of the person by treating women as entrepreneurs, supports self-determination by letting them choose how to use loans, advances social justice by addressing financial exclusion and builds on the importance of human relationships through peer groups.

Slide 7: Program Name: SEED Circles (Program name)

• SEED = Supporting Entrepreneurship, Equity and Dignity
• "Circles" reflects the peer groups at the heart of the model
• Seeds suggest small beginnings that grow, matching small loans that grow with repayment

Notes: I propose naming the program SEED Circles: Supporting Entrepreneurship, Equity and Dignity. The name is memorable, connects to Southgate's farmers market and gardens, and reflects the program's core idea that small investments, nurtured by a supportive circle of peers, can grow into lasting change.

Slide 8: Section 2: Who SEED Circles Will Serve (Program proposal)

• 40 women (8 circles of 5) age 18 and older living in Southgate
• Household income at or below 200% of the federal poverty level
• Running or planning a small business; priority for single mothers
• Why: women face greater barriers to credit, and their income benefits the whole family

Notes: The pilot will serve 40 women in eight circles of five, within the donor's range of 25 to 50 clients. Participants must live in Southgate, be 18 or older, have household incomes at or below 200% of the federal poverty level and run or plan a small business, with priority for single mothers. This group is large enough to test the model but small enough to support well. Women face barriers to credit, and research on Grameen-style programs shows benefits for women and their households (Schaberg et al., 2022).

Slide 9: Program Goals (Program proposal)

• Goal 1: By month 12, at least 32 of 40 participants (80%) will operate a business earning at least $500 per month in revenue
• Goal 2: By month 12, at least 36 participants (90%) will repay their first loan on time and establish or improve a credit score
• Measured by business records, loan data, credit reports and quarterly surveys

Notes: Goal 1 focuses on business development: at least 80% of participants will operate a business generating at least $500 in monthly revenue by the end of the pilot. Goal 2 focuses on financial inclusion: at least 90% will repay their first loan on time and establish or improve a credit score. Both goals are measurable and realistic based on Grameen America's high repayment rate and MDRC's findings. We will also track material hardship and participant satisfaction.

Slide 10: Financial Assistance and Budget (Program proposal)

• First loans: $1,500 to $2,500 (average $2,000) over 6 months, no collateral
• Second loans: up to $4,000 for women who repay on time
• Loan fund: $120,000 (first and second rounds for 40 women); repayments recycled
• Support costs: about $70,000 for a loan officer, training, childcare and credit counseling
• Small by design: the SBA's average microloan is about $13,000; startup needs here are smaller

Notes: SEED Circles will offer first loans of $1,500 to $2,500, which matches Grameen America's first-loan cap of $2,500 and the needs of home-based businesses such as catering or hair braiding (Grameen America, n.d.-a). Women who repay on time can borrow up to $4,000 in a second cycle. A $120,000 loan fund covers both rounds, and repayments are recycled to new borrowers. About $70,000 covers a part-time loan officer, five days of business and financial training, childcare during meetings and credit counseling. By comparison, the SBA's average microloan is about $13,000 (U.S. Small Business Administration, n.d.), so SEED Circles fills the gap below what traditional microlenders offer.

Slide 11: Summary: Why SEED Circles Will Work (Program proposal)

• Removes barriers: no collateral or credit score, childcare during meetings, training in plain language
• Furthers self-determination: women choose their businesses and set their own goals
• Builds lasting assets: business income, credit histories, savings and peer support
• Sustainable: repaid loans and pilot results can attract the donor's network for expansion

Notes: SEED Circles will provide 40 Southgate women with small, collateral-free loans, training and peer support to start or grow businesses. It removes barriers that keep women out of mainstream finance, such as lack of collateral, poor credit, childcare needs and complex paperwork, and it furthers self-determination by letting participants decide what businesses to build. By building income, credit and support networks, the program addresses community needs for economic opportunity and financial inclusion, and its revolving loan fund and measurable results make it well suited for expansion.

Slide 12: References

Grameen America. (n.d.-a). Our program. https://www.grameenamerica.org/program

Grameen America. (n.d.-b). 2024 annual report. https://annualreport2024.grameenamerica.org

Grameen Bank. (n.d.). Introduction. https://grameenbank.org.bd/about/introduction

National Association of Social Workers. (2021). Code of ethics of the National Association of Social Workers. https://www.socialworkers.org/About/Ethics/Code-of-Ethics/Code-of-Ethics-English

Quiroz Becerra, M. V., Schaberg, K., Holman, D., & Hendra, R. (2020). Putting microfinance to the test: 18-month impacts of the Grameen America program. MDRC. https://www.mdrc.org/work/publications/putting-microfinance-test

Schaberg, K., Holman, D., Quiroz Becerra, M. V., & Hendra, R. (2022). Pathways to financial resilience: 36-month impacts of the Grameen America program. MDRC. https://www.mdrc.org/work/publications/pathways-financial-resilience

U.S. Small Business Administration. (n.d.). Microloans. https://www.sba.gov/funding-programs/loans/microloans

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