United Prosperity will allow the general public to combat poverty and multiply the impact of their money.

1. http://www.unitedprosperity.org
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2. The poor have limited access to capital
Total working poor without
access to capital ~ 3 billion1
100 million
entrepreneurs
served by
micro-finance
institutions1
1. Gonzalez and Rosenberg (2006),
“The state of Microfinance” and Estimated 1.5
CGAP occasional paper #8 (2004) billion working
poor in demand
of microfinance1
2

3. Lack of guarantees limits lending to small entrepreneurs1
“The biggest problem we face in trying to expand
the reach of microcredit is not the lack of capacity.
Instead, it is the lack of availability of money to help
microcredit programs get through their initial years
until they reach break-even level.
Local banks cannot lend to MFIs because MFIs
cannot provide collateral.
However, if an international or domestic
organization steps forward to act as a guarantor,
local banks are happy to provide the money.”
The Microcredit Revolution in ‘Creating A World Without Poverty: Social business and the future of capitalism ’,
NewYork, PublicAffairs, page 70). By Mohammad Yunus with Karl Weber
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1. Refer slide in Appendix for CGAP’s note on guarantees

4. Your guarantee will enable entrepreneurs to get loans
You guarantee loan to entrepreneur
on United Prosperity’s website
$20
Lends1 Lends
$20
Repays loan Repays loan
Bank Microfinance Entrepreneur
Guarantee: $60 Institution (MFI)/Partner Loan : $200
Loan : $200
$20 Guarantee: $60
Social Guarantors On loan repayment
(You) your funds are returned to you
1 - Banks also lend directly to entrepreneurs in some cases
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5. How does it work ? Originate Guarantee Issue Repay
Loans Loans Loans Loans
(slide 1 of 4)
 Microfinance institution (MFI) uploads list of entrepreneurs or
groups seeking loans onto United Prosperity website
Loan No. Group No. Client Id. First Name Last Name Term Sex Amount Age Loan Purpose
10001 891 34454 Malati Ahir 9 F 7500 25 To buy a cow
10002 891 35656 Vasanti Tamhane 6 F 5400 32 To open a flower shop
10004 891 35666 Sujata Kumbhar 8 F 8000 28 To put up a tea shop
10005 891 35667 Aseema Sheikh 8 F 7850 23 To start an embroidery business
10006 891 35682 Farha Ismail 8 F 7540 23 To start an embroidery business
 MFI also uploads photograph and profile of entrepreneur or a
group of entrepreneurs for whom it seeks funds
or + +
Entrepreneur
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6. How does it work ? Originate Guarantee Issue Repay
(slide 2 of 4) Loans Loans Loans Loans
 Using United Prosperity’s website, social guarantors like you
select an entrepreneur whose loan they would like to guarantee.
Loan amount: $200
Guarantee: $60 $20
The guaranteed amount is always Social Guarantor
less than the loan amount ,with the Social Guarantor
initial loss in case of a default $20
borne by the MFI. $50
In this example, the guarantee is Entrepreneur
focused on an entrepreneur, but it
could also be focused on a group
of entrepreneurs $20
Social Guarantor 6

7. How does it work ? Originate Guarantee Issue Repay
Loans Loans Loans Loans
(slide 3 of 4)
 The Bank and MFI issue loans
Microfinance
Bank Entrepreneur
Institution (MFI)
 The MFI uploads the loan disbursal date on the United
Prosperity website
Loan No. Date Month Year Amount
10001 23 6 2008 7500
10002 30 6 2008 5400
10004 23 6 2008 8000
10005 30 6 2008 7850
10006 23 6 2008 7540
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8. How does it work ? Originate Guarantee Issue Repay
Loans Loans Loans Loans
(slide 4 of 4)
 Loans are repaid
Weekly or
Fortnightly or
Monthly Monthly
Microfinance Entrepreneur
Bank Institution (MFI)
 The guarantee amount is returned to you (social guarantor)
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9. Your guarantee makes a difference to poor entrepreneurs’ families
 Availability – Because of the guarantee, the
entrepreneur gets a loan
 Timely – The entrepreneur can start her
business immediately and improve her family’s life.
 Credibility - By repaying this loan the
entrepreneur can establish her credit worthiness in
the community
 Lower Interest Rate – Because of the
Entrepreneur
guarantee the entrepreneur gets the loan at a
lower interest rate
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10. Strengthens institutions that serve the poor
 Access - Can borrow from local and
international banks and reach out to more
entrepreneurs
 Relationships - Can establish relationships
with larger banks
 Lower Cost - Reduce the cost of borrowing
Microfinance from banks
Institution (MFI)
 Better Cash Flow – Reduce working capital
requirement and leverage existing capital
effectively
 Credibility – Association with an international
organization like United Prosperity increases
their market credibility
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11. Makes bank lending more inclusive
 Credit Quality - Powerful cash-secured
guarantee significantly reduces the risk of
lending to the poor
 Better Capital Utilization - With lower credit
risk, capital can be leveraged to increase lending
 Greater Revenues - Enhanced conduit to
emerging MFIs and micro-enterprises to sell
loans and cross sell related products like savings
Bank accounts, health and life insurance
 Lower Risk – Continuous visibility and
monitoring of the MFI performance when the
guarantee is in force
 Financial Inclusiveness - Increase financial
inclusiveness with minimal risk
11

12. Maximizes your impact
 Maximum Impact – Because of the risk
sharing between the bank and United
Prosperity a $1 in guarantee translates to
$2 to $5 in loan to the entrepreneur
 Transparent –You can see who’s life is
getting transformed by your guarantee
 Multiplied – On loan repayment you can
You support a new entrepreneur
(Social Guarantor)
 Affordable – With as little as $25, you
can transform the life of a family
12

13. Appendix
13

14. Guarantees help emerging microfinance institutions gain bank
financing and reach more entrepreneurs
Guarantors and MFIs managers report that loan
guarantees help MFIs to get loans—often the MFI’s
first local loan—from banks that otherwise would
not lend to them.
-Consultative Group to Assist the Poor (CGAP)
(Focus Note No. 40, January 2007)
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15. Guarantees will accelerate the growth of smaller MFIs
There are estimated to be 10,000 MFIs worldwide
Banks lend to larger well-established MFIs ( Tier 1 and some Tier 2)
Banks are reluctant to lend to emerging (Tier 2-4)
Source: Jennifer Meehan(2004) “ Tapping Financial Markets for
Microfinance” and Grameen Foundation USA 15

16. Guarantees help the entrepreneurial poor access capital
End loans intended for Entrepreneur objective Guarantee on
behalf of
Traditional microfinance •Additional family income MFI
•Income generating activity
•Mostly part-time labor
•Often temporary, and sometimes
seasonal activities
Technology innovation financing •Improved livelihood Portfolio of loans
• Finance new technological •Exponential productivity gains of bank intended
innovations which help the poor •Potential to grow for financing
improve their livelihood innovations
Microenterprises •Some orientation to growth and Portfolio of
•1-10 employees capital accumulation microenterprise
•Fixed business premises •Stabilization of income loans of bank
•Typically family labor
Self Help groups •Additional family income Portfolio of SHG
•Groups of poor entrepreneurs who loans of bank
borrow jointly
•Income generating activity
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17. Early Supporters
Cognizant
 Leading provider of information technology, consulting and business process outsourcing services
 NASDAQ-100 Index and S&P 500 Index
 Pro-bono software development for United Prosperity
Netsuite
 Leader in on-demand software
 Netsuite software license and implementation grant
Hanson Bridgett
 One of San Francisco's oldest and most respected law firms
 Pro-bono legal services for United Prosperity
School of Law – Boalt Hall, University of California, Berkeley
 Pro-bono legal services for United Prosperity by the Practicum group
O’Melveny and Myers
 Ranked 16th on The American Lawyer’s 2008 A-List
 Pro-bono legal services for United Prosperity
Tempus Law
 Pro-bono legal services for United Prosperity
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18. Thank you
bhalchander@unitedprosperity.org