Microlending in the United States: A Timeline History, 1973-2011

This note presents a history of microlending in the United States (U.S.), from its beginning in 1973 to its current state in 2010. The history of microfinance in the U.S. began in the 1970s, with an increase in awareness of the need to create an inclusive financial system for the many who lack access to appropriate financial products and services. Key events mentioned in the note include:

• Early 1970s, ShoreBank Corporation and Women’s Economic Development prove that poor are creditworthy;
• Early 1980s, CFED and Opportunity Finance Network, two leading voices in promoting policies to expand microfinance in the U.S., are formed;
• Early 1990s, ACCION International applies its microlending model to the U.S. and the Congress passes the CDFI Fund Act in 1994;
• Kiva launches its U.S. partnership in 2009;
• As of 2010, the U.S. microfinance field has emerged. Microfinance USA, a first nation-wide conference with the aim to expand microfinance in the U.S. is held.

The paper concludes that microfinance in the U.S. has led to a more inclusive financial system. Currently, there is wide consensus that support for microfinance should be a key part of economic development policy in the U.S.