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This paper by Katy Skarlatos looks at the microfinance industry and its relationship to women’s empowerment and propose ways that microfinance programs can be reformed to have the greatest impact on women’s empowerment strategies. It analyzes existing institutions and market failures that sustain the practice of restricted credit access, examines the role of women in the Nicaraguan economy, recognizes some of the existing arguments against microfinance as a tool for empowerment, and concludes with specific recommendations as well as national regulatory limitations for creating microfinancial institutions that empower women to redefine their status in the home, community, and national economy.