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Why United Prosperity?

At United Prosperity, we are committed to:

1. Helping the poorest

While many low income families get access to microloans these days, the poorest often get excluded since reaching out to the poorest is not commercially attractive. We work in regions with high levels of extreme poverty and are deeply committed to helping the poor, especially the poorest. Your support will transform their communities as even a small microloan guarantee goes a long way.

2. Transforming the availability of capital to break the vicious cycle of extreme poverty

There are two types of capital– Patient Capital and Commercial Capital. Patient Capital usually comes from individuals and seeks social development, long-term results and empowerment. Commercial Capital seeks profit and looks for returns that are commensurate with risk.

While Patient Capital is in short supply and in places that are far away from where it is needed, Commercial Capital is plentiful and often available locally within the developing countries.

Separately, Patient Capital and Commercial Capital can achieve little to alleviate poverty.

United, they can work wonders.

At United Prosperity, we combine the Patient Capital that you provide with Commercial capital we raise locally to create twice the impact. Every dollar of Patient Capital acts as a guarantee that raises an additional dollar of Commercial Capital that is otherwise too conservative to participate in microfinance loans.

3. Building local self-sufficiency

We make the funds that are present with banks in the developing countries available to the poor who need it the most. At the same time we create partnerships between MFIs and local banks. This builds institutions and capacity at the local level, thereby building self-sufficiency and decreasing dependence on foreign aid.

Additionally our Guarantee-Loan-Impact model manages some of the risks associated with international lending better:
  • Mitigates currency risk: Currency risk is mitigated since the loan from the Bank to the MFI and from them to the entrepreneur are in local currency. The guarantee funds which remain in dollars will be called only in the event of a default and that is not common.
  • Additional loan monitoring:Besides us, the bank also monitors the loan made to the MFI.
  • Complete loss only if the MFI defaults: The possibility of a complete loss occurs only if the MFI defaults on the loan it received from the bank. If a few microloans to the entrepreneurs default the MFI covers the losses from their ‘loan loss reserve’.

Learn about How We Work through a detailed step-by-step description of our model.

UnitedProsperity.org is a U.S. 501(c)3 non-profit organization