It has been shown again and again that simply donating funds, while honorable, is not effective in bringing about sustainable change in poor communities. Microfinance is an effective solution to this problem.

Group Lending: We have found that microloans are much more effective in creating change when given to a group of people within a community rather than just an individual. The members of the group can work together on one business plan, or each develop and implement their own. However, if one member defaults on a payment, the whole group is held responsible. This creates a built in support system. For instance, if one business is failing, the group as a whole will most likely be able to manage the debt. The success of the community depends on the success of each group member; thus, the most successful individuals share the techniques and knowledge that helped bring about their success. The poor communities of the world tend to have a strong collective nature, and this method plays to that strength. The success of these groups benefits the whole community. Economic success allows for advances in healthcare and education, which in turn, create more and better opportunities for all members of a community. Advancement in these three arenas is the key to escaping poverty.

Graduated Loans: This method takes group-lending one step further: once a community has successfully paid the original loan, they can request and qualify for additional funds equal to or greater than the original amount. This provides additional incentive to pay the current loan on time and in full to ensure access to more funds in the future. This policy also makes it possible to develop a credit rating for the members based on their history of paying each successive loan. This is very similar to the credit ratings we are used to in the United States for example, by incorporating evidence of responsibility and stability in their business practice. This allows the poorest people to develop a credit history that can be referenced by potential lenders in the future.

Who will receive the loans: People in developing countries with the vision and drive to create a business. We use a combination of our own field research and leads from contacts in target countries to seek out these people. If you know or are a member of a community in need of our services, please do not hesitate to contact us.

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