Mission Investing in Microfinance: A Program Related Investment (PRI) Primer and Toolkit
This primer and toolkit discusses the basic policy, financial, and legal issues concerning mission or program related investing in microfinance. It includes model legal documents that a foundation could use to implement its decision. A program related investment (PRI) is predicated on a foundation accepting some investment risk to advance its charitable mission. The toolkit is intended for foundations interested in microfinance PRIs, especially those offered by MicroCredit Enterprises. MicroCredit Enterprises is a California-based nonprofit corporation that is a tax-exempt public charity. It is a private sector innovation which leverages private capital to provide small business loans to poor entrepreneurs in developing countries. Its special focus is sustainable economic development for families living in extreme poverty. The toolkit focuses specifically on two PRIs offered by MicroCredit Enterprises:
- Interest-Bearing, Secured Loans, where a foundation can provide an interest-bearing secured revolving line of credit. Each USD 1.2 million loan supports up to 12,000 microcredit business loans in developing countries;
- Guarantor, where a foundation can guarantee loans to MicroCredit Enterprises. Each $1 million guarantee supports up to 5,000 microcredit business loans.
