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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.
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