About Us

MCE Social Capital is a nonprofit impact investing firm that uses a pioneering loan guarantee model to generate economic opportunities for millions of people, particularly women, in more than 35 countries.

The Financial Inclusion Gap

More than two billion people in the world lack access to formal financial services—including savings accounts, insurance, and loans—and consequently must contend with financial insecurity on a daily basis. Small businesses also suffer from a lack of appropriate finance opportunities, despite their unique potential for transformative job creation and social impact. We help fill these financial inclusion gaps by funding:

  • Microfinance Institutions (MFIs) that help people living in rural areas gain access to credit, savings accounts, insurance, healthcare and health education, business education, and technical assistance.
  • Small and Growing Businesses (SGBs) that create jobs, help smallholder farmers, facilitate clean water and energy, and increase household savings.

Commitment to women: Across its investments, MCE focuses on organizations that are women-led, include a majority of women in a supply chain, specifically develop products or services for women, employ a majority of women, and/or have a majority of direct clients who are women.

MCE was founded in 2006 on the belief that loan guarantees—an ancient finance mechanism—could uniquely unlock private sector capital for businesses and entrepreneurs in developing countries. More than thirteen years later, MCE has refined its pioneering loan guarantee model (see right) to successfully unlock millions of dollars of capital.

mce-infographic-design-vfinal(Click to enlarge image)

MCE’s loan guarantee model: MCE finances its MFI and SGB lending by collecting philanthropic pledges from foundations and individuals (its guarantors) to make tax-deductible contributions if – and only if – an MFI or SGB fails to repay a loan from MCE. MCE pools these pledges – now $135M from more than 100 guarantors – and uses them as collateral to borrow capital from U.S. and European financial institutions.

MCE’s Innovations

MCE is a nimble, virtual organization with leadership in San Francisco, Barcelona, New York, Washington, D.C., Denver, and Philadelphia..

MCE recruits trail-blazing individuals, foundations, and other entities to back loans to MCE from institutional lenders and accredited investors. Learn more about the Guarantor model.

Since 2006, when MCE began operations, MCE has disbursed more than $185 million in loans to over 100 microfinance institutions (MFIs) throughout the developing world, reaching millions of people. As of the end of 2018, the end beneficiaries of the MFI portfolio were 64% women and 57% rural.

MCE’s Small and Growing Business (SGB) portfolio, separate from the MFI portfolio, was supported by MCE’s retained earnings and donations between 2013 and 2017, when the portfolio was formally launched and switched over to guaranteed capital with the support of USAID’s Partnering to Accelerate Entrepreneurship (PACE) program. The SGB portfolio makes flexible, customized, and affordable loans to SGBs in Sub-Saharan Africa, Latin America, and other challenging parts of the world.

MCE sells its Global Economic Opportunity Notes (the Notes) to accredited investors. These Notes pay a fixed financial return, generate positive social impact, and benefit from MCE’s 13-year track record of solid portfolio performance and the fact that MCE’s investments are backed by $135 million in loan guarantees.

MCE was honored as an Impact Asset’s Top 50 Impact Investment Fund in 2012, 2013, 2014, and 2015.

MCE in Action

From January 19-24, 2015, nineteen of MCE’s Guarantors, staff, and friends traveled to Ecuador to see MCE’s innovative approach to impact investing in action. Watch the video here!