Microcredit Enterprises Approves $ 600,000 Loan to Help up to 6,000 Poor Ecuadorian Women Start Home-Based Businesses; Prosperity for Third-World Impoverished
Davis, CA (PRWEB) March 23, 2006
MicroCredit Enterprises LLC, a not-for-profit business that makes guarantor-backed loans to aid third-world poor, today announced its loan of $ 600,000 to Fundación ESPOIR, an Ecuador-based NGO (nonprofit) microfinance institution (MFI). The three-year loan, which will benefit as many as 6,000 women, commences funding in April.
MicroCredit Enterprises (MCE) is an innovative, not-for-profit, anti-poverty business venture, which leverages private capital to make tiny business loans to poor people, mostly women, in developing countries.
“Long-term, sustainable change – from abject poverty to self sufficiency – is our goal,” said Jonathan C. Lewis, MicroCredit Enterprises’ CEO. “We’ve created this financial model to support microfinance programs, which are a proven international poverty reduction strategy. Remarkably, poor women entrepreneurs show a loan repayment rate of higher than 99 percent in well-managed microfinance programs.”
With today’s announcement, MCE – at just over a year old – has already guaranteed funds for more than $ 1.3 million in microloans and has helped an estimated 13,000 poor women. The impoverished loan recipients, such as the 6,000 women who will benefit from the loan to Fundación ESPOIR, generally have no credit history, no collateral and no formal education. With microloans, however, they will create and build home-based businesses, generating personal income that will allow them to take care of themselves and their families. Typical home-based businesses funded with new microloans, which can be as low as $ 25.00 per borrower, include soap-making, raising animals and weaving.
MicroCredit Enterprises’ future goals include securing a total of 20 guarantors and $ 10 million in loans by the end of 2006. The organization is actively seeking and linking new guarantors to back the company’s microfinance program. Each new guarantor supports up to 5,000 new, female-owned small businesses overseas.
About MicroCredit Enterprises
Based in Davis, California, MicroCredit Enterprises is an innovative, not-for-profit, anti-poverty business venture which leverages private capital to make tiny business loans to impoverished people, mostly women, in developing countries. Without raising a dime of traditional charitable donations, MicroCredit Enterprises uses the collateral assets of individuals and institutions to borrow debt capital in the United States that is channeled through overseas, locally-run, non-governmental microfinance organizations. The impoverished loan recipients generally have no credit history, no collateral and no formal education, but with microloans, they create and build home-based businesses. MicroCredit Enterprises’ economic development objective is to reverse the cycle of poverty in economically distressed countries using the tools of the marketplace to provide self-help opportunities to millions of impoverished women and their families. On the Net: http://mcenterprises.org.
About Fundación ESPOIR
Fundación ESPOIR is an Ecuador-based NGO (nonprofit) microfinance organization formed in 1992. Its mission is to contribute to the economic and social development and health of poor female microentrepreneurs in Ecuador through providing working capital credit and education aimed at enhancing their individual capacity to generate income for their personal welfare and that of their family. Fundación ESPOIR is a member of the board of directors of the Ecuadorian microfinance network RFR (Red Financiera Rural).
# # #
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Related Microcredit Press Releases