1. Helping Millions Help Themselves MicroBikeUSA Tyler Heishman Fred Piumelli Bryan Stinchfield April 24, 2008 Microfinance

2. Agenda 1. What is Microfinance? 2. Meet a Microentrepreneur 3. History of Microfinance 4. Microfinance Today 5. Questions and Discussion

3. Microfinance: Lending to the Poor  Microentrepreneurs have strong business ideas  Small loans are needed to finance growth  No financial sources  moneylenders  Microfinance offers dignified technique for the poor to build wealth and escape poverty  High repayment rate (97%) testifies to strength of microentrepreneurs and allows capital to support more of the poor

4. Meet a Microentrepreneur  Clara Hernandez started a vegetable stand when her husband was fired  "This business was a result of pure necessity,"  Took $250 loan from Compartamos  "We needed capital to expand and buy more produce, but we had nothing left to invest," says Clara.  Three loans later, the business has grown from a tiny stand to a large storefront built onto the couple's home.

5. History of Microfinance  Developed in 1970’s  Grameen  ACCION  Replace moneylenders  Give poor tools they need to break poverty cycle  High repayment  Group lending  Dynamic loans

6. Microfinance Today  2006 Nobel Peace Prize: Muhammad Yunus and the Grameen Bank  2005 UN Declaration as "International Year of Microfinance"  Total Active Borrowers: Over 57 million*  Total Loan Portfolio (USD): Over $25 Billion* * www.MixMarket.orgwww.MixMarket.org

7. What do you think? Questions and Discussion

8. World Poverty  1 billion people live on less than $1 per day  3 billion people live on less than $2 per day  About half of the world’s population  Mostly found in developing countries  Poverty Trap: People are unable to grow wealth because all resources go to survival  Isolated from traditional financial system

9. We Must Help  Global society  Social contract  Too many people suffering

10. COMING SUMMER 2008 Michael Delorenzo Tyler Heishman Keith Kolakowski Frederick Piumelli Bryan Stinchfield James Watson

11. ACCION International  Microfinance innovator in 1970’s  Current leader in microfinance institution development  Brings expertise and support to partners  Strives for institutional sustainability and capital markets funding  Works with 35 partners in 23 countries  Recent milestone: 3 million active clients

12. Contact Us  www.microbikeusa.com www.microbikeusa.com  microbikeusa@gmail.com  Tyler Heishman: heishma_tyle@bentley.eduheishma_tyle@bentley.edu  Fred Piumelli: piumell_fred@bentley.edupiumell_fred@bentley.edu  Bryan Stinchfield: stinchf_bry@bentley.edustinchf_bry@bentley.edu