Program Update 12/22/18

Hermes Reyes named as micro loan coordinator

Coordinator responsibilities include:

1. Collection and record keeping of payments
2. Monthly visits to micro loan businesses
3. Report to WCRF monthly (due 5th of each month)
   • Summary of each business’ problems and progress
   • Payment Ledger
4. Conduct monthly business support meeting
5. Recruit and teach new 12 week business class (separate compensation for this)
6. Review new business plans with Juan (to be posted on website)
7. Help with new:
   • Businesses Profiles for website
   • Personal Profiles
   • Cash Flow Charts
   • Use of Loan Proceeds
   • Pictures
8. Compensation (C$150 per business each month that has qualified and had a loan 100% funded)

Program Description

Through 10 years of helping this rural area become self-sufficient, we have found many talented motivated people willing to work hard to succeed. In most cases, access to a  small amount of capital is the biggest obstacle to lifting these people out of poverty. You can help these people in this impoverished area of Nicaragua support their family and grow the economy of the area through our micro loan program. Your loan is not a donation, but a loan that will be required to be paid back to you over a 2 or 3 year period. You can fully or partially finance a requested loan (minimum $100). At the end of the payment period of the loan, you can reclaim your money or reallocate it to another project.

There is always risk in micro finance lending, but the success rate in fully paying back these type of loans worldwide is over 90%. Each applicant has been vetted and required to disclose how they would use the loan to grow their business. They also provide information about their business and some personal information that you can see in their loan profile. Pictures are also posted when available. All loans that are funded, requires a signed contract by the applicant outlining terms of the repayment of the loan.

On the right,  you will see the current loan profiles. Please view each one of them and when you are ready to provide financing, simply Venmo the money to @wwcrf and in the description add the Loan Profile Number found in the Profile you wish to finance. If you prefer, you can write a check made out to WCRF, and note in the memo the loan number. (send to WCRF, 521 Dizmar Ct, Cameron Park, CA 95682)

You can track the success of the loan funding and loan payback progress on the website.

Why we do Micro Loans?

We (WCRF) have spent the last 10 years working in this impoverished area of northern Nicaragua. Our focus has been on economic development, health, and education. Regarding economic development, we have tried numerous methods to stimulate the local economy. We have determined that by supporting motivated entrepreneurs that have a burning desire for success through small loans (micro loans) is the best method. In our past support of people in this impoverished community, we have learned with educational and financial support they can be successful.  The pilot loan program has had a 100% scheduled loan payback as of this date.

In our experience, we have found the following to be true:

“The greatest entrepreneurs succeed not because of what they possess, but what they are determined to do. Great entrepreneurs simply make a series of choices, day after day, to move forward regardless of what they lack or must fight against”.

Through our screening process, we have been able to find people that embody the following traits:

1. They always think boldly and creatively.
2. They plan and prepare for success
3. They make it easy for anyone who wants to get involved in what they are doing to find real, meaningful ways to participate. Give them real responsibility and control. They will attract others who share those values.
4. They realize that great ideas and great programs do not have to manifest themselves in one fell swoop. Many masterpieces are built over time by trial and error, by steps forward and backward, by constant perseverance and adjustments!
5. They move ahead more quickly if they don’t get too attached to what they have built when the results aren’t right. They reanalyze, adjust, and begin again.

Finding diamonds in the rough is our passion. These motivated individuals make great sacrifices to be successful. They are willing to learn and work hard. They often hire others to help build a successful business. This process of economic development can move an entire community out of poverty as money and resources grow and recirculate to build a local economy.

Our Process in Helping Entrepreneurs Prepare for Success

1. We require that they take a 12 week course called :“Starting or Improving Your Small Business” (it includes book work and practical examples)
2. Each graduate submit a business plan that includes:

• Personal Profile
• Description of the business
• One year cash flow work sheet showing gradual positive cash flow
• Interview with the a field director of WCRF showing why the business will be successful
• They must sign a contract promising to pay back the loan according to the contract terms

These micro loans are not donations but actual loans that are returned to the sponsor on completion of the payback period. Although there is no guarantee to these loans will be paid back, our process has proved to limit defaults.