Microcredit is a powerful force for economic development. A five-year study of U.S. microcredit programs by the Aspen Institute found that 25% of borrowers rose above the poverty line after three years, and 84% of participants experienced gains in household income. Average household income increased by $10,494, average business assets grew by $18,706, and average household assets grew by $27,787. However, according to one study, the average administrative cost of lending one dollar for one year in the seven oldest and best-known microenterprise programs in the United States in 1996 was $1.50.

As a student-run, all-volunteer organization, Elmseed stands apart. Our overhead costs are low, allowing us to provide microcredit loans far more cost-effectively than most microcredit lenders. Donations to Elmseed make a difference on a local level, helping entrepreneurs and fostering economic development here in New Haven. And, of course, the beauty of microcredit is that every dollar donated to Elmseed has the potential to reach multiple entrepreneurs through successive cycles of lending and repayment.