A small loan helps a family start their own business, earn a regular income and afford food, clean water, proper shelter and an education for their children.
A small loan gives a hand up to a family living in poverty, helping them start their own small business, earn a regular income and afford food, clean water, proper shelter and an education for their children.
As small as $70, loans can be used to buy…
- A sewing machine to start a tailoring shop
- Seeds to plant a vegetable farm
- Stock to set up a small grocery store
- Utensils and ingredients to start a cooking stall
- A boat to start a fishing business
Why do families in poverty need small loans?
With no collateral, credit history or formal identification, a mother or father living in poverty is unlikely to qualify for traditional baking services. This means that no matter how hard they work, it’s nearly impossible for them to break the cycle of poverty in their family’s life.
What they need is a hand up.
With a small loan to start their own business, that mother or father no longer has to worry about where their children’s next meal will come from or how they will send their little ones to school – the regular income they earn from their business empowers them to walk into a future free from poverty.
In fact, your donations can start a ripple of transformation that continues for generations to come.
How does it work?
These small, collateral-free loans are often first provided in a group setting, with 10-20 people meeting together to receive and repay their loans and offer support to one another as they build their new businesses.
As businesses flourish, some go on to receive larger loans individually to grow their microenterprises even more. Some choose to receive specialist loans, such as tailored farming loans or sanitation loans to help them install a toilet. Others no longer need a loan at all – their businesses are now sustainable and their families’ needs are being met.
We want families to be able to make the most of their small loans, so loan officers walk alongside all loan recipients providing support and training. The term of a loan varies, but is typically six months to a year.
An incredible 99% of our loans are repaid! Once repaid, loans are recycled and lent out to help another family start their own business and leave poverty behind.
95% of our loan clients are women – restoring dignity and hope to their lives and enabling them to provide for their children. By investing in mothers like Mira, Naomi and Inis, you’ll be giving them the tools they need to transform their families’ futures. Because small loans means big changes!