Grameen America Spreads in New York

Although there was already a good example of Grameen America Jackson Heights Branch in New York to replicate, for Abdus Salam, Grameen America Brooklyn’s first Branch Manager, starting a new branch was still not an easy task to accomplish. At one point during my interview with him, he said, “opening a branch is not easy”, I felt that he really meant it and the honest words came out of his heart. With 15 years of experience as a Zonal Officer and with a graduate degree from a reputable university in Bangladesh, the Brooklyn office in NY has been in the hands of a very experienced manager. With many years of experience, for Mr. Salam, city life in Brooklyn, was even more challenging maybe as challenging as starting a new branch, and it still is. Because, knowing the city and understanding social and economic dynamics of it is the key to a successful operation of a micro credit program.

Grameen America’s Brooklyn Branch started in February 2009. The branch, as of November 2010, had 939 under its 99 centers. And total amount of disburses was 2,338,085. Many of the women members are originally Spanish. and many of them are single mothers. The branch gives out minimum of 1500 US dollars and maximum of 2000. However, Mr. Salam adds, “by maximum I mean it increases over time”. Success brings more loans, he implies. At its current initial stage, Grameen America is now providing its members with two products, micro loan, and savings. The members of Grameen America Brooklyn branch are involved in a variety of economic activities such as selling and making jewelry, beauty salons and cosmetics accessories, ice-cream making and selling, food carts, in-home bakeries.

Micro credit has the capability to stimulate the local economy by supporting local entrepreneurs. For this, low-income individuals, who are already engaged in an economic activity, need to form a group of five and must fall in the category of poor defined by US Census Bureau. The interest rate is 15 % on a declining basis, which is appreciated by the members, as it is not possible for low-income individuals to get a loan from commercial banks. Most of the members are already involved in some sort of economic activity and this loan is very vital for their businesses. Operating a micro finance branch is a costly procedure due to higher rent, transportation and higher salaries of the staff members. And, this requires at least five years to reach financial sustainability according to Mr. Salam, which is also the objective of the other Grameen America Branches in the United States.

Grameen Bank is like a family and their members work like family members. The solidarity and team spirit is so strong that some of the members of Jackson Height Branch, the first branch of Grameen America in The States, actually got involved in forming groups in Brooklyn area, because they lived there. Laundromats, churches, community centers, parking lots, shops and such places are all potential locations for advertising Grameen America in the country. Grameen America wants to be under every stone. It wants to be heard loud and clear all over the country.

From Bangladesh to America, staff members’ profile also differs. Mr. Salam would like to use this difference in a positive way. Training, encouraging and understanding are the key features of work relations in Brooklyn Branch, which he believes will eventually bring success with Grameen America’s successful members. For him, it is just a matter of time!