Jennifer Lopez helps provide Latin entrepreneurs with billions in loans
We all know Jennifer Lopez as an actress and singer, but she’s also a businesswoman, including her skincare line, JLo Beauty, and now she’s giving back to help other entrepreneurs. It has partnered with Grameen America, a New York-based micro-finance nonprofit, to help 600,000 Latino entrepreneurs with $14 billion in capital. The partnership with Limitless Labs, the program it launched last year for Latin entrepreneurs, will also provide six million hours of financial training and education by 2030, according to a press release.
“Being Latino in this country has always been a matter of pride for me. I am honored and more than grateful to partner with Grameen America,” Lopez said in a statement. and leadership.
Latino entrepreneurship has increased recently, with Latinas accounting for 40% of all Latinx business owners and the number of businesses employing Latinas has increased by 20% in the last five years of available data, according to the 2020 report on the state of Latino entrepreneurship published by Stanford Graduate School of Business. Despite this increase, Latinx-owned businesses are less likely to receive a loan from the bank than their non-Latinx white counterparts, according to the study. According to a report by the National Women’s Business Council, only 4% of all small business loans issued by traditional financial institutions go to women.
“Grameen America is the only organization with the national scale, reach and proven model required to deploy $14 billion in lending capital to emerging businesswomen in Latinx communities. Together, we will shape entrepreneurship as a viable path to success for Latin American women who have never had access to formal financial markets and are often excluded from economic opportunities,” said Andrea Jung, President and CEO direction of Grameen America, in a press release.
In order to get the loans, the applicants have to become a member of Grameen and they have to complete a one-week financial training course before receiving the loan. They are then required to complete weekly financial literacy sessions and must also make loan repayments each week, Inc. reported Grameen America provides ongoing financial education to its members and reports microloan repayments to credit bureaus to assist them. to build up credit. Since its inception in 2008, it has served more than 150,000 women in 23 US cities and distributed $2.6 billion in loans. The organization’s repayment rate is over 99% and its members have earned an average credit score of 644 through their participation in the program.
“There is so much strength in this community and we are harnessing it. This partnership will create equality, inclusivity and opportunity for Latina businesswomen. This will change the fabric of America! Lopez added.