The viability of a microfinance institution in Scranton, Pennsylvania
(Book - Regular Print)

Thesis,MSES,Green Mountain College,2014

Includes bibliographical references.

Many potential entrepreneurs in Scranton, Pennsylvania do not have access to conventional banking services and their financial needs are not being met by traditional financial institutions (J. Frank, September 6, 2013). They often have "Subprime credit scores with thin or nonexistent credit files. In the eyes of traditional credit reporting agencies, they basically all look the same and represent a perceived credit risk, so they are denied access to mainstream financial products" (Morrison, 2013). The lack of financial services hinders the ability for individuals to start and operate a business to the benefit of employment and the economy. Microfinance institutions (MFIs) have mitigated this problem in some markets. The microfinance movement in the United States seeks to expand economic opportunities for individuals and to foster community economic development by providing small loans and other business services to people who have been traditionally excluded from mainstream financial institutions (Bernanke, 2013). The purpose of this research is to complete the first stage in a proof of concept to determine the feasibility of an MFI in Scranton PA. Specifically, research examined the current market opportunities and challenges of a successful MFI in Scranton. This included an assessment of required support from governmental and quasi-governmental, and nonprofit organizations in the capital structure for economic viability. The results of this study were used to assess the potential for starting a MFI in Scranton to meet the financing needs for those not served by the traditional baking sector.