 Microenterprise Development
Program Goal
The goals of the Microenterprise Development Program are to assist refugees in becoming economically self-sufficient, to help refugee communities in developing capital and employment resources, and enhance the integration of refugees into the mainstream.
General Background
Microenterprise Development services include business technical assistance or short-term training, credit in the form of micro-loans up to a maximum of $15,000 and, if applicable, a revolving loan fund. The programs are designed in a manner that is culturally and linguistically appropriate for the refugee population.
Refugees bring many positive attributes to the Microenterprise Development program, including a diverse and a rich array of business ideas, skills, experiences, and a strong desire to succeed. During the last 15 years, refugees have started, expanded or strengthened more than 6,200 micro-businesses, with a business survival rate of 88 percent. ORR grantees have provided approximately $7.4 million in financing to these entrepreneurs and the agencies have used these loans to leverage another $8.1 million in loans from other sources in the private and public sectors. The loan repayment rate is nearly 98 percent which is far higher than the average repayment rate in the industry. Additionally, over 3,600 new jobs have been created. Over 10,500 refugees have gained new entrepreneurial skills and knowledge, and the additional business income is helping refugee families to achieve economic self-sufficiency.
Program Description
The Microenterprise programs are designed with understanding of the characteristics of the local refugee populations: employment rates, welfare status, length of time stay in the U.S., interest in micro-businesses, readiness to start a micro-business, and English language proficiency. Also, they are familiar with the capital needs and capital market gaps for refugee entrepreneurs and therefore train refugees how to access to business credit.
Eligible Applicants
Public or private non-profit organizations
Targeted Populations
Eligibility includes persons who meet all requirements of 45 CFR 400.43 (as amended by 65 FR 154009 (March 22, 2000).
The targeted refugee population for these programs may include refugees who receive public assistance or subsidies, and/or who lack the financial resources, credit history, or personal assets to qualify for business loans or assistance through commercial institutions. Refugees who are not yet citizens may participate in the Microenterprise Development Program regardless of their date of arrival in the U.S.
Geographical Area(s)
All
Policy Information
- 45 CFR 400.43
- 65 FR 15409 (March 22, 2000)
- 412 (c) (1) (A) of the Immigration and Nationality ACT (INA) (8 U.S.C. 1522 (c) (1) (A)
Grantees
Microenterprise Development Program Grantees (doc 55KB)
Funding Opportunities
Contact Information
Belay Embaye
Program Manager
Office of Refugee Resettlement
Administration for Children and Families
370 L’Enfant Promenade, S.W.
Washington , DC 20447
Phone: (202) 401-4978
Fax: 202-401-5772
Belay.embaye@acf.hhs.gov