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MicroCredit Enterprises (MCE), a pioneering private sector program that leverages private capital to provide small business loans to poor entrepreneurs in developing countries, announced today the law firm of Davis Polk & Wardwell has joined the organization’s ranks of pro bono law firms. Davis Polk will represent MCE in its international lending activities, including structuring and documenting lending arrangements and providing ongoing legal counsel in connection with MCE’s international lending strategy. “We are very excited to be representing MCE” said Davis Polk attorney Jason Kyrwood, who will be coordinating the firm’s efforts on behalf of MCE. “We feel that by harnessing the firms’ extensive experience in a wide range of international corporate finance transactions, we can make an important contribution to the field of microfinance, and in particular to MCE and it’s stated mission of reducing global poverty.” MCE’s special focus is sustainable economic development for families living in extreme poverty; $1.00 per day or less. Fifteen percent of the world’s population lives on this amount. The absolute poverty level, as defined by the World Bank, is $2.00 a day. Below this point, families are hungry for a significant portion of their lives. MCE recruits “guarantors” who provide full recourse guarantees - while retaining control of all assets – to allow MCE to obtain secured lines of credit from lending institutions. MCE then lends to partner microfinance programs in developing countries. These programs make loans to poor people, mostly entrepreneurial women, who use the funds to build small businesses – everything from making pottery making to raising chickens - that lift their families from extreme poverty. Microfinance has proven extremely successful at alleviating poverty. Families’ repayment rate is as much as 97% (the average U.S. commercial credit card repayment rate is 95% or less). For every $1 million in backing from guarantors, MCE can provide loans to 5,000 individuals who, in turn, feed 25,000 family members, 60% (15,000) of whom are children. Thus a single guarantor helps enough desperately-poor people to fill a professional basketball venue. “Davis Polk has made a significant commitment to alleviating global poverty,” said Jonathan Lewis, Chief Executive Officer of MCE. “Every single global transaction which the firm will consummate on behalf of MicroCredit Enterprises directly puts food in the mouths of desperately hungry women and children.” An almost entirely volunteer organization with extremely low overhead, MCE relies on an outstanding team of attorneys who help with everything from the complex banking and lending to taxation issues. Other firms who donate considerable time to the organization include O’Melveny & Myers, Goodwin Procter, San Francisco Bay area attorney Lucy Reckseit and the Groom Law Group. “The families who are the beneficiaries of microloans are hard-working and honest, all they want is freedom from hunger and education for their children,” said Gary Ford, MCE General Counsel, guarantor and Partner of The Groom Law Group. “These families only need to be given a chance, in the form of small loans, to build thriving businesses and better lives. At MicroCredit Enterprises, we give them this chance.” For more information about MicroCredit Enterprises, visit www.mcenterprises.org About Davis Polk & Wardwell. Davis Polk & Wardwell is a global law firm based in New York City. For more than 150 years, its lawyers have advised industry-leading companies and global financial institutions on their most challenging legal and business matters. Davis Polk ranks among the world’s preeminent law firms across the entire range of its practice, which spans such areas as capital markets, mergers and acquisitions, credit, litigation, private equity, tax, investment management, insolvency and restructuring, executive compensation and intellectual property. The firm has more than 600 lawyers in offices in New York, Menlo Park, CA, Washington, D.C., London, Paris, Frankfurt, Madrid, Hong Kong, Beijing and Tokyo. Through the firm's extensive pro bono program, it provides pro bono legal services to those who cannot otherwise obtain legal representation and to organizations that serve underprivelleged communities, with the same dedication and commitment to excellence with which it represents its paying clients
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