Why Microfinance?

Feed A Millions Mouths International believes that microfinance is an effective way of fighting poverty because:

Microfinance is proven to be one of the most powerful vehicles in the global effort to end poverty.
Microfinance provides very small loans, to those trapped in poverty, for use in self-employment ventures. The borrowers do not only work to end their poverty, but will also improve the quality of life of their families and strengthen their community.
Microfinance programs have given many of the world’s poorest the escape route out of the poverty trap. The increase in household income allows borrowers to provide greater quantities and more nutritious foods for their families, to have access to education for their children and to improve their living conditions.
Microfinance funds are recycled. As loans are repaid, usually in six months to a year, these funds are re-lent. This continual reinvestment multiplies the impact of each dollar lent.
Microfinance has a positive impact far beyond the individual client. As families cross the poverty line and micro-businesses expand, their communities benefit. Jobs are created, knowledge is shared and civic participation is increased.