Loan Guarantee Microfinance Investment Vehicle

MCE is a non-profit public benefit corporation that utilizes a loan guarantee model to help people living in poverty access credit and other financial services on fair terms globally.

By leveraging the balance sheets of high net-worth individuals and foundations, MCE borrows private sector capital, primarily through commercial loans from U.S. banks, which it then carefully deploys to microfinance institutions (MFIs) across the developing world.

Under its unique model, MCE has disbursed more than $95 million in loans to MFIs, which have in turn made more than 351,000 loans (valued at $157 million) to people living in poverty since its founding in 2006.

Financial description

MCE takes a business-driven, social enterprise approach to its financial sustainability by covering its lean budget with earned revenue and maintaining a prudent level of liquidity reserves. MCE has been financially self-sufficient (in the black) since 2006. MCE currently has 84 Guarantors representing $103 million in loan guarantees. Over $50 million in loans have successfully matured and MCE’s portfolio companies currently have a 99.3% repayment rate. MCE maintains a ratio of 2:1 for Guarantees to portfolio value and this, along with the strong creditworthiness of its Guarantors, allows it to unlock traditionally domestic, private-sector debt capital to fund MFI loans.