Microfinance

Microfinance Project

Poverty in Guatemala is widespread and deeply entrenched, particularly among poor rural people, who account for 71 percent of the country's poor population... women are the most vulnerable... and are less aware of their rights. (International Fund for Agriculture 2008)

For the population living below the poverty line, Guatemala ranks 127th out of 145 countries worldwide. (CIA World Fact Book: Feb. 2010)  Which means that there are only 18 countries worldwide ranked poorer than Guatemala.

Small business loans provide opportunity. They provide financial opportunity for women to improve the quality of life for themselves and for their families. World Link Partners has been providing small business loans in other areas of Guatemala; however, currently we plan to focus in the geographical area of Senahu, in Alta Vera Paz. One of the reasons for this is because it is one of the poorest and least served areas in the country. This is largely due to the isolation and remoteness of the area which contributes to the villages being neglected by both the government and non-government (humanitarian) organizations.

World Link Partners' goal is to provide small business loans to qualified applicants. Loans would be primarily available for the graduates of the Literacy Project who are seeking financial opportunity, skills development and business training. Applicants will be screened and must have a business plan to qualify.

The women (entrepreneurs) receive training in basic business skills, management of money, and development of small businesses.  They meet regularly for loan repayment, savings, monitoring, and group support. 

COST: $100-$200 per loan per woman

TOTAL COST: $600 to $1,200 to fund one group of 6 women

World Link Partners' role is the provision of funding for the loans. 

CHOICE Humanitarian provides the salary for the project director who will identify and screen applicants, disburse the loans, train and monitor the women and collect repayments.

This is an excellent project for commercial banks supporting a village bank. It is also an excellent project for businesses promoting business training and financing.