http://www.GrameenFoundation.org For several decades The Grameen Foundation has provided small loans to small groups of people typically in developing countries. Commercial banks making a business loan require the individual or group receiving the loan to provide proof of "collateral". Collateral is the ownership of sufficient property, savings, and investments with which to use as "collateral" to pay back a loan made to a group member if that loan goes into default. Default means that the person(s) receiving the loan cannot make all the payments to pay back the loan. In that case, the person turns over ownership to the loan-providing bank of their property, savings, and investments which the loan agreement defined as being the "collateral" for the loan. The Grameen Foundation, however, only requires "social collateral". One member of a small group of people receives a small loan to setup or to continue running a small business, usually out of their home in an impoverished village in an impoverished country. The small group of people have agreed to support each other and guarantee to the "local Grameen Bank" that the member of their group who receives the loan will pay it back in full. If not, neither the person who received the loan nor any of the other members of the support group can ever receive a loan from the Grameen Foundation in the future. Very few loans made in this way by "Grameen Banks" to very poor people have gone into "default".