Chevron Donates $1 Million to Microfinance Organization

San Ramon-based Chevron Corp. committed $1 million to help open a Bay branch of a microfinance organization, the company announced in recent weeks.

The money will allow Grameen America to open its first west coast office, according to a Chevron press release. Grameen was founded by Nobel Peace Prize laureate Muhammad Yunus.

"The economic slowdown has made it especially difficult to secure funding for Bay Area small businesses and entrepreneurs, often a catalyst for job creation and economic growth for the state," said Grameen America CEO Stephen Vogelin the release. "Chevron’s support will help hundreds of entrepreneurs realize their dreams of starting their own businesses."

Grameen was founded two years ago in Manhattan. The company has lent $13 million in microloans to 5,000 borrowers – the average loan being $1,500.

Chevron's gift will allow the New York-based company to lend $300,000 to about 250 borrowers during its first year in the Bay Area, according to the statement.

Grameen America's aim is to give a leg up to low-income clients without access to traditional credit. The company said most of its borrowers are women.

Unemployment in the Bay Area hovers around 10 percent. Microlending meets a pressing need to give small businesses and disadvantaged locals a chance to improve their situation in life, the news release noted.

Grameen America helps its clients establish or expand a business, start a savings and build credit. Part of the organization's business model is to help its borrowers gain assets and plan for the future. There's also a peer-support system in place to foster each client's success.

The gift is part of Chevron's California Partnership – an effort by the oil giant to financially support education and economic growth in California.