Mid-day Update

Mid-Day Extra: Starbucks gets into the money-lending business

David Brancaccio May 3, 2012

Starbucks, the coffee company, is getting into money lending business.

Before you run out thinking you can combine a grande latte plus low-interest business loan in one stop, let me explain. Starbucks is working with one of the pioneers of microlending in developing countries – the Grameen Foundation – to lend money to small coffee farmers.

Microloans are typically micro in size and shorter term. The loans to which Starbucks is contributing a portion are longer term. A group in Germany that works to get better deals for producers in poor countries, Fair Trade International is also a part of this.

As our Mid-day Update podcast, we spoke with Ben Packard, vice president of global responsibility at Starbucks.

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