Jennifer Lopez's New Partnership with a Microfinance Lender is Long on Press But Short on Details

Mark Hake

Jennifer Lopez, who split from all her business relationships with Alex Rodriguez in early 2021, recently announced on June 9 a partnership deal with a microfinance lender called Grameen America.

The problem is, despite numerous press releases, there is virtually no real information on the amount of money Jennifer Lopez is contributing to the deal.

Her own philanthropic firm, Limitless Labs, is partnering with Grameen to lend to Latina women - which is the stated purpose of the partnership. But no one knows how much actual money Jennifer Lopez is going to lend to Latina women through the deal.

In fact, the only number thrown out is this - $14 billion. Here is what the headline of one press release says:

"Jennifer Lopez Partners with Grameen America to Accelerate its Goal to Deploy $14 Billion in Loan Capital to 600,000 Low-Income Latina Entrepreneurs by 2030."

Jennifer Lopez said the same thing in her Instagram announcement in early June.

But Jennifer Lopez doesn't have $14 billion or anywhere near that amount to lend out. So it's not clear from this announcement what she intends to do.

Where's The Beef?

Here is how that announcement got garbled up, especially with the Latina community. A recent headline on a site called BeLatina headlined this on June 14:

"Jennifer Lopez Wants to Give Latina Entrepreneurs the Capital Boost They Need"

That headline really implies that she is now in the business of giving out capital to Latina women.

The reason why this is so obfuscated is that there indeed are no details about money from either Grameen America or Limitless Labs about the actual monetary contribution that Jennifer Lopez is making, if at all.

Grameen America now claims to have handed out $2.4 billion in microloans to 150,000 low-income women entrepreneurs since it started in the US in January 2008. It claims that it had 20 locations in 13 cities with $820 million by early 2018, according to Forbes.

This implies that it has made $1.58 billion in the last 5 and a half years, or about $287.3 million per year. Apparently, 99% of borrowers have repaid their loans and the average FICO credit score achieved as a result of the $1,500 to $2,500 loans is 644.

Jennifer Lopez's Potential Actual Contributions

Let's say that Jennifer Lopez is willing to give out $40 million in microloans via either Limitless Labs and/or Grameen America.

That might be a lot of money to most people, but maybe not to Ms. Lopez. Her reported net worth, according to paparazzi news sites, is about $400 million and she reportedly makes about $40 million per year.

In fact, she just produced a new movie with Netflix, called Halftime, which is ranked number 2. The documentary is ranked 85% on Rotten Tomatoes' Tomatometer and 88% on its Audience Score. That's lower than her movie Hustlers, which was featured in the Halftime documentary.

The point is that Jennifer Lopez seems to have the ability to give up one year's salary as a contribution/investment in a Grameen America fund. It would only be one-tenth, a tithe if you will, of her wealth. It could also fund about 1/7th of one year's $280 million in microloans at Grameen America.

But we don't know if this is the order of magnitude of loans that Jennifer Lopez is investing in Grameen's fund. Neither have we been able to find a website for Limitless Labs to which Jennifer Lopez's organization is related.

One thing is clear. Grameen America has not filed any capital raising documents with the SEC since Jan. 22, 2018, when it reportedly raised $11.15 million in 2016. How it reportedly was able to make $2.4 billion in loans from that capital is amazing.

Maybe that is why Jennifer Lopez is a little shy about saying how much money exactly she is going to give to Grameen to make up to $14 billion in loans to Latina women.

Or is she even going to give money at all to Grameen America? So far this is not clear. This is a very simple and basic question that many Latina women probably want to know.

*********************

Don't forget to fully "Follow" me and download the Newsbreak app to become a Registered Follower. This way you can also see all my articles in the past. Click on the link underneath my profile name above.

Mark R. Hake, CFA writes articles at InvestorPlace.com, Barchart.com, Medium.com, and Newsbreak.com as well as a Beehiiv free newsletter on stocks and cryptos.

Comments / 1

Published by

Mark Hake is a financial analyst, investor, and Chartered Financial Analyst (CFA). He writes about US and foreign stocks as well as cryptos, hedge funds, and private equity. He previously ran his own hedge fund, investment research firm, and acted as CFO for a fintech startup. He focuses on finding value, arbitrage, and hidden asset opportunities.

Phoenix, AZ
3205 followers

More from Mark Hake

Comments / 0