Banking on community, local lenders secure PPP loans for businesses

Poor people are less likely to make smart financial decisions; however, new research in the U.S. says this is not about intelligence but rather about a brain being overwhelmed with issues related to poverty. To combat that barrier of stress, organizations around the world are making financial decisions easier for people experiencing poverty by making borrowing easier and automating future financial planning, like 401(k) contributions.

Funding with too many strings attached makes it hard for non-profits to grow and be impactful. An American organization, Nonprofit Finance Fund (N.F.F.) Capital Partners division, is finding ways to finance non-profits likes companies and has already shown great success in pilot situations.

At a time when university students lack opportunities and financial help to test their innovative business ideas, the Resolution Project supports higher education students who have ideas for socially responsible businesses and charities. Resolution offers small awards to start businesses as well as mentor opportunities that enable networking and business collaboration with experts.

The 2008 recession’s job losses spurred a development of a Do-It-Yourself economy. With the advent of Uber, Etsy, Airbnb, and others, the marketplace has become full of micro-entrepreneurs who thrive with independent web-assisted businesses.

Foreclosure affects millions of homeowners and millions more owe more on their mortgages than what their homes are worth, but Empowering and Strengthening Ohio’s People (ESOP), offers assistance. As a free service to borrowers, ESOP holds lenders accountable with fair lending agreements, creates constructive communication, and ultimately saves homes.

A panoply of responses to poverty has emerged to address poverty in the United States and abroad. The responses share in three key tactics: Measuring impact, paying for success, and collaboration.

A follow-up article on Husk Power Systems, which has created a scalable system to turn rice husks into electricity that is reliable, eco-friendly and affordable for families in India. The company bases their business model around local involvement, grassroots systems that cater to the immediate community, and continual accountability. This article fills in some information gaps from the initial piece, "Fixes: A Light in India."

Two columns on microconsignment, a new variation on microcredit that helps poor people living in developing countries - particularly women in rural villages - start small social businesses without taking on debt or requiring previous business skills. The organization, Soluciones Comunitarias, partners with a non-profit and a university student program to manage the supply chain and other components of the business necessary to support the social entrepreneurs in successful micro-ventures.

Access to electricity in India takes a huge economic, educational, and health-related toll. A small company called Husk Power Systems has created an innovative system that is turning rice husks into electricity and illuminating India’s poorest state.

Programs to get fresh produce carts to areas with no access to healthy food work best when government and determined entrepreneurs team up. Success from this model is evident in New York City, where the city has incentivized the selling of fruits and vegetables by street vendors in areas that are in the most need of the produce.