Our mission is to provide access to education and business capital to set individuals on a path to self sufficiency
How are loans managed?
Armando Lorio, Director of Operations, is our only paid staff member. He diligently manages the loan application process, assessing applicants' eligibility and guiding them through the necessary steps. Additionally, Armando provides invaluable mentorship and support to borrowers, ensuring they have the tools and knowledge needed to succeed in their businesses.
By having a passionate and capable team member like Armando, we can maintain a streamlined and efficient loan administration process, making sure that funds are distributed to deserving entrepreneurs and empowering them to create positive impacts within their communities.
How can the loans be used?
Loans are only to be used for business purposes. Loans cannot be used for medical expenses,home repairs, etc.
What types of businesses qualify for loans?
We offer loans to a wide range of viable businesses across various industries. Borrowers have found success in diverse sectors, including agriculture, fishing, retail, motorcycle repair, construction and food service.
Who qualifies for loans and what is the application process?
We do not discriminate on the basis of race, color, national origin, sex (including gender identity and sexual orientation), disability, age, or religion.
Armando carefully evaluates all applicants. To be eligible, individuals must submit a viable business plan, along with a detailed budget outlining how they intend to allocate the funds, and their projected return on investment. Once the application is submitted, loans are typically disbursed within one month.
Most applications are accepted. If an individual does not have a viable business plan, Armando works with them to create one.
What is "small" loan?
Loans start at $165 and are capped at $1,300.
The small initial loans serve the purpose of establishing creditworthiness. Individuals who successfully pay off a small initial loan, qualify for larger loans in the future.
Can you provide examples of successful businesses that have benefited from your loans?
Every loan we have dispersed has increased the borrower's household income. Many individuals were living in conditions of extreme poverty (living on less than $2.10 a day) and are now running thriving businesses. This extra income allows them to feed their children 3 meals a day and be more prepared for life's emergencies.
Emilia and Georgina both used a loan to purchase a sewing machine after taking a sewing class together. They both now have successful sewing businesses.
Wilmer was able to buy tools to start a motorcycle repair shop after completing a motorcycle repair training program.
Maria now runs a very successful food stand in town.
These are just a few of the many success stories of our borrowers.
What are the interest rates and repayment terms for the loans?
While many microfinance organizations still impose excessive interest rates to offset the high cost of administering loans, we take a different approach. Generous donations to cover our administrative costs enable us to offer loans with 0% interest.
Borrowers are only required to pay a 1% loan origination fee. Once they receive the loan, they have a grace period of 1-2 months before beginning their repayments. This period allows new businesses the necessary time to establish themselves. Depending on the loan amount, borrowers have a repayment window of 10-18 months.
What happens if a borrower faces challenges in repaying the loan?
Our repayment structure is designed to be borrower-friendly, allowing most borrowers to easily repay their loans. We understand that unforeseen challenges can arise, and if an individual faces difficulties in repaying the loan, we are committed to helping them through that situation. In such cases, we offer a loan payment plan restructuring to accommodate their circumstances and support their successful loan repayment. Our priority is to ensure that our borrowers can manage their loans responsibly and achieve their business goals effectively.
Do you offer any financial literacy workshops or resources to help borrowers manage their finances effectively?
Yes! We are dedicated to empowering our borrowers with the necessary knowledge and skills to manage their finances successfully. As part of our comprehensive approach, all borrowers participate in group business classes, where they learn essential financial literacy concepts, budgeting techniques, and best practices for managing their businesses effectively.
Furthermore, to ensure personalized support, each borrower is mentored by Armando. Armando plays a crucial role in guiding and advising borrowers throughout their loan journey. He offers individualized mentorship suited to the specific needs and challenges faced by each entrepreneur.
Contact us with any other questions!