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Understanding the United States-Supported Microfinance Institution
Definition & Meaning
A United States-supported microfinance institution is a financial organization that has received funding from the U.S. government for the purpose of providing financial services to low-income individuals or communities. This support began with funding available for fiscal year 1980 and continues to apply to subsequent fiscal years. These institutions aim to promote economic development and empower individuals by giving them access to credit, savings, and other financial services.
Table of content
Legal Use & context
This term is primarily used in the context of international development and economic assistance. It is relevant in areas such as:
Microfinance and economic development
International relations and foreign aid
Non-profit and financial sectors
Users can manage related forms or procedures using resources like US Legal Forms, which offers templates drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A community-based organization in a developing country receives funding from the U.S. Agency for International Development (USAID) to provide microloans to local entrepreneurs. This organization qualifies as a United States-supported microfinance institution.
Example 2: A non-profit organization that offers savings programs and financial literacy training to low-income families in the U.S. and has received federal grants for this purpose is also classified under this term.
Relevant laws & statutes
The primary legal reference for United States-supported microfinance institutions is found in 22 USCS § 2214a. This statute outlines the definitions and regulations governing microenterprise development assistance.
Comparison with related terms
Term
Definition
Key Differences
Microfinance Institution
A financial institution that provides financial services to low-income clients.
May not specifically receive U.S. government funding.
Nonprofit Organization
An organization that operates for a charitable purpose and does not distribute profits.
Not all nonprofits are microfinance institutions.
Common misunderstandings
What to do if this term applies to you
If you are involved with or seeking assistance from a United States-supported microfinance institution, consider the following steps:
Research available institutions to find one that fits your needs.
Gather necessary documentation to apply for services or funding.
Explore US Legal Forms for templates that can help you manage related legal documents.
If your situation is complex, consider consulting a legal professional for tailored advice.
Find the legal form that fits your case
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