Top 8 Microfinancing Companies in the United States

Microfinance companies provide financial services, such as small loans, to individuals and small businesses—primarily those not eligible for traditional banks. Microfinance helps ease the financial services criteria. It enables people to get money for basic necessities, support small businesses to grow, or improve their living standards.

Microfinance companies often cater to small business owners and entrepreneurs struggling to get funding from traditional banks. These companies use various models to deliver financial services to their clients. One of the most common models is microlending. Here an individual can obtain microloans regardless of their credit score or credit history.

Microfinance companies are crucial in promoting economic growth among minorities. These services help individuals and small businesses get money quickly. They also offer financial education and training to help entrepreneurs make informed decisions.

They provide access to financial services to individuals and small businesses who would otherwise not have access to them. It enables them to grow their businesses, increase their income and improve their living standards. Microfinance companies play a vital role in promoting economic development, especially among low-income groups who can’t get help elsewhere.

Most microfinance organizations’ main line of business is the provision of small loans. Microloans or microcredit are often in the range of just a couple of hundred or thousands of dollars. While some microfinance loans may have higher interest rates than traditional financial institutions, they still offer the required capital.

Top 8  microfinance companies in the US

We’ve listed the top microfinance platforms operating in the United States you can consider.

1. Justine PETERSEN-

It is a non-profit organization based in St. Louis, Missouri. It provides financial services and resources to underserved communities. Its mission is to empower low-income individuals and families to build and retain wealth through homeownership, entrepreneurship, and asset building.

The organization was founded in 1997 and has helped many families achieve financial goals. It offers various services, including small business loans, credit building and repair, and financial education. Justine PETERSEN also collaborates with a network of partners to provide additional support to its clients, such as tax preparation and legal services.

Overall, Justine PETERSEN is a valuable resource for individuals and families looking to achieve financial stability and independence. By providing access to financial services, education, and advocacy, the organization helps to build strong and thriving communities.

2. FINCA-

This non-profit organization provides financial services to low-income entrepreneurs. FINCA offers a range of financial products and services, including loans and insurance products. This allows borrowers to build their businesses, increase their income, and improve their standard of living.

FINCA also aims to improve the quality of life in the communities it serves. Its programs focus on health, education, and environmental sustainability issues. Its unique approach to development combines its financial services with social programs. The organization’s holistic approach helps empower individuals and communities to break the cycle of poverty and create lasting change.

FINCA’s mission is to provide innovative and sustainable financial services to low-income individuals. It enables them to improve their quality of life and build a better future for themselves and their families.

3. Lendee-

It’s one of the most trusted US-based microlending platforms that believes everyone deserves a chance to do better for themselves. The Lendee app offers individuals and small business owners quick access to applying for and receiving small loans.

Lendee allows borrowers to get as low as $100 in loans to pay for their day-to-day expenses. You can obtain microloans from Lendee for sums that are not typically available for borrowing from traditional lenders. With Lendee, a small firm that is just getting started or needs assistance could get a small loan of up to $2000. 

Lendee allows borrowers to create a profile in just a few steps. Its easy navigation system guides first-time users to create profiles and link their bank accounts. It also helps raise a loan request and select an offer that matches your needs. Moreover, Lendee helps borrowers improve credit scores because it notifies the credit bureaus of all payment activities.   

4. Accompany Capital-

Previously known as Business Center for New Americans, this microfinance company provides small business loans, microloans, and revolving lines of credit. It offers loans of up to $2000 to boost credit scores. One benefit of Accompany Capital is that it provides free workshops on improving your credit score. It helps you to understand your credit report and find and correct any errors. 

In contrast to conventional banks, it gives you access to small amounts of working capital, ranging from $500 to $50,000 with terms of up to three years.

5. Main Street Launch-

Main Street Launch has assisted and empowered Bay Area small businesses since 1979. It offers access to funding to foster economic opportunity in the neighborhood. 

The organization offers inexpensive microloans and small business loans to help small businesses grow and achieve their business goals. Main Street Launch now serves San Francisco and veteran-owned businesses in California. It offers a loan amount of up to $3,50,000  with reasonable interest rates and no penalties on prepayments. These small business loans start from $10,000.

6. DreamSpring-

Established twenty-nine years ago, it’s a non-profit organization. It aims to provide loans and unite a community of support for new companies and small business owners. 

Providing more than 42,000 loans in 3500 communities has significantly improved the lives of numerous struggling individuals and companies in the United States. 

Whether you’re starting or hoping to expand, DreamSpring provides you with personalized loans for your small business goals. It can help your small business grow with a loan size that meets your demands and has flexible repayment plans.

It also allows you to improve your credit health and boost your credit score to help you obtain bigger loans in the future.

7. LiftFund-

This non-profit microfinance company founded in 1994 has offices across different US states. LiftFund is a small lending firm that assists aspiring and established business owners by providing funds for a business that still needs to be bankable. 

LiftFund offers small business loans, training, and support services to underserved communities. It promotes economic development and job creation by helping entrepreneurs access capital. LiftFund provides loans to small businesses across multiple states in the US to meet business requirements. They offer eligible women, startups, and entrepreneurs affordable business loans and counseling across thirteen states. LiftFund has made a significant difference, with a repayment success rate of 96%. 

8. Accion-

Accion, started in 1961 by a law student at UC Berkeley, has come a long way since its origin. Despite being a lender, they emphasize supporting small businesses’ ongoing operations and ability to survive, much like SBA loans do. Their primary goal is to help businesses obtain funding from lenders to grow. 

Accion likewise follows a similar approval procedure to the SBA. It keeps a check on your credit score. You should not have any recent bankruptcies or foreclosures. Additionally, the business should be in good financial condition.

The Final words

We hope our list can help identify your best option so you can move forward. If you are interested to know more about Lendee, download the Lendee app and get money from the comfort of your home.