the US, microfinance organizations target marginalized populations unable to access mainstream bank financing. Close to 8% of Americans are unbanked, meaning around 9 million are without any kind of bank account or formal financial services. Most of these institutions are structured as nonprofit organizations. Microloans in the U.S. context is defined as the extension of credit up to $50,000. In Canada, CRA guidelines restrict microfinance loans to a maximum of $25,000. The average microfinance loan size in the US is US$9,732, ten times the size of an average microfinance loan in developing countries (US$973). Impact While all microfinance institutions aim at increasing incomes and employment, in developing countries the empowerment of women, improved nutrition and improved education of the borrower's children are frequently aims of microfinance institutions. In the US and Canada, aims of microfinance include the graduation of recipients from welfare programs and an improvement in their credit rating. In the US, microfinance has created jobs directly and indirectly, as 60% of borrowers were able to hire others. According to reports, every domestic microfinance loan creates 2.4 jobs. These entrepreneurs provide wages that are, on average, 25% higher than minimum wage. Small business loans eventually allow small business owners to make their businesses their primary source of income, with 67% of the borrowers showing a significant increase in their income as a result of their participation in certain micro-loan programs. In addition, these business owners are able to improve their housing situation, 70% indicating their housing has improved. Ultimately, many of the small business owners that use social funding are able to graduate from government funding. United States In the late 1980s, microfinance institutions developed in the United States. They served low-income and marginalized minority communities. By 2007, there were 500 microfinance organizations operating in the US with 200 lending capital. There were three key factors that triggered the growth in domestic microfinance: Change in social welfare policies and focus on economic development and job creation at the macro level. Encouragement of employment, including self-employment, as a strategy for improving the lives of the poor. The increase in the proportion of Latin American and Asian immigrants who came from societies where microenterprises are prevalent. These factors incentivized the public and private supports to have microlending activity in the United States. Canada Microfinance in Canada took shape through the development of credit unions. These credit unions provided financial services to