A press release from MicroCredit Enterprises:

Davis, Calif. – March 15, 2007 - MicroCredit Enterprises, a California based not-for-profit venture that provides philanthropic guarantor-backed microloans to aid third-world poor, announced today a US$4.8 million revolving credit facility has been established with the Tokyo Star Bank, a leading Japanese financial institution. The financing will assist MicroCredit Enterprises in helping the estimated 1.1 billion desperately poor people who survive on less than US$1 a day.

Tokyo Star Bank’s International Business Team was instrumental in the execution of the transaction, underscoring the Bank’s commitment to corporate social responsibility on a global scale. The revolving credit facility allows MicroCredit Enterprises to on-lend money to the poor, mostly women, in developing countries, through microloans. The impoverished loan recipients generally have no credit history, no collateral and no formal education.

“We’re extremely excited to be partnering with the Tokyo Star Bank, a company that shares our desire and dedication to reversing the cycle of poverty in economically distressed countries,” said Jonathan Lewis, Founder & CEO, MicroCredit Enterprises. “Microfinancing has been widely recognized as an effective tool for building financial security around the globe by utilizing the means of the marketplace to provide self-help opportunities to millions of impoverished women and their families.”

MicroCredit Enterprises is an innovative, anti-poverty venture which leverages private capital to deliver tiny business loans to destitute people. To date, the venture has secured $20 million in guarantees for loans to aid the desperately poor in developing countries. MicroCredit Enterprises uses the collateral assets of individuals and institutions to borrow debt capital that is channeled through overseas, locally-run, non-governmental microfinance organizations.

MicroCredit Enterprises’ model includes the necessary aspects of sustainability, ensuring the loans reach entrepreneurs who will build businesses which quickly affect positive development in their communities. The venture is actively seeking new guarantors to back its microfinance program. Each new guarantor’s support means the creation of up to 5,000 new, female-owned small businesses overseas. Worldwide, the average loan is $100, and poor women borrowers have an astonishing 97 percent repayment rate.

About MicroCredit Enterprises

Based in Davis, California, MicroCredit Enterprises is an innovative, not-for-profit, anti-poverty venture which leverages private capital to make tiny business loans to impoverished people, mostly women, in developing countries. MicroCredit Enterprises uses the collateral assets and personal guarantees of individuals and institutions to borrow debt capital in the United States that is channeled through overseas, locally-run, non-governmental microfinance organizations. The impoverished loan recipients generally have no credit history, no collateral and no formal education, but with microloans, they create and build home-based businesses. MicroCredit Enterprises’ economic development objective is to reverse the cycle of poverty in economically distressed countries using the tools of the marketplace to provide self-help opportunities to millions of impoverished women and their families. On the Net: http://www.mcenterprises.org.

About Tokyo Star Bank, Limited

Tokyo Star Bank, with its brand as the “friendly, relevant and comfortable” alternative to traditional banking, is an innovative, growth-oriented bank. The company’s mission of “Financial Freedom” seeks to free their retail customers and small and medium-sized enterprises from their worries in managing finances through close collaboration with its financial product specialists. The bank provides their customers with ongoing consultation, continuing education and other after-sales support, and delivers tailored financial solutions through increasing reach of its branch network by opening financial lounges in optimal locations and in the select major cities throughout Japan. Tokyo Star Bank has the stated capital of JPY 21 billion, 35 branches as of March 15, 2007. On the Net: http://www.tokyostarbank.co.jp.

Pierre Cutler
Sacramento Executive