Rotarian Microcredit on Mexican Border - Rotary E-Club of ...

<strong>Rotarian</strong> <strong>Microcredit</strong>
on Mexican Border
Revolving Loan Matching Grant
Nogales, Mexico

What is Micro Credit ?
n A small amount of money ($200-
$1200) is loaned by a professional
microcredit bank to a motivated and
enterprising individual who has a
successful small business but no
collateral and no access to affordable
credit to expand the business.

Can Small Loans
Really Make a Difference ?
Actual examples from
Nogales, Mexico

Señora Calderon
"Three and a half years ago, I borrowed
$200 to allow me to expand my tortilla
business. I make high quality flour and
whole grain tortillas that I sell for $1 a
dozen.
I make and sell 70 dozen tortilla packs
per day. My costs are about $30 for the
70 dozen, so I make about $40 per day.
I employ one woman on an hourly basis
and our work is completed before noon.
By comparison, my husband works all
day at a factory in Nogales and he makes
$7 a day.
The extra income we have from my
business allows our four children to go
to school, my family to eat healthy meals
every day, and we have made some
important improvements in our home".

Señora Duran
Avon and other health and beauty
products. Seven year old business that
buys and resells with a 40%+
commission. Sells for cash, generally.
Borrowed 3500 pesos ($275) in July
2011 to expand her business. Her
markup on the additional sales from the
borrowed funds allows her to make an
extra 1400 ($100) pesos every time she
sell and collects, which is monthly or
more frequent.
She works from home. Four children.
Husband does iron work and earns $8
per day or $40 a week.
She learned about EnComun from
friends and family. Thinks the
borrowing process is good and interest
rates are about right.

Señor y Señora Rodriguez
Borrowed 2200 pesos ($175) to buy
additional items for their food business
that supports them and their three
children.
They rent a booth space in a busy area
Monday – Saturday 3 -10 PM. She
prepares food at home in the mornings
while he sets up the booth .
They have only one portable stove and
one set of dishes and utensils, so
everything is cleaned and moved twice a
day.
They think principle and interest rate is
fair. They make a 328 peso payment
every 14 days; loan will be repaid in four
months. They want to work to a larger
loan to improve their food offerings and
the set up in the booth.

Senora Castro
New "fast food" business
Borrowed 2000 pesos in September
2011 and rented the microwave and
bought food supplies
Sells close to home from a little stand;
makes about a 40% mark up
Needs the money to help support her
3 children
Very happy with the loan and interest
rate
Business off to good start

What are <strong>Microcredit</strong> Results ?
Borrowers say: “With the extra money I now
earn…….
n My children are able to go to school.
n My family eats good food regularly.
n My home living conditions are improved.
n My family stays together in Mexico.
n I have dignity and hope for the future
based on my personal and business growth.

Why Does <strong>Microcredit</strong> Work ?
n Enterprising people with a successful
business finally have affordable cash and
the opportunity to expand their business to
benefit their family.
n Shared aims and trust in the group.
n Eligible for a larger loan (+$200) when all
loans in the borrowing group repaid.

How Does <strong>Microcredit</strong> Work?
n The banker organizes borrowers into a 10
person borrowing group.
n Each borrower develops a business plan
and their credit capability is determined.
n Borrowers are trained in business basics.
n Borrowers sign a group promissory note.
Pledge to repay their loan and collectively
repay any loan default in their group.

EnComun Crecemos
n <strong>Microcredit</strong> bank contractor for this project
n Began non profit microcredit operations 2004
and served >5000 clients.
n 1227 clients now in 138 Borrowing Groups.
n Add about 30 new clients per month if funds are
available to loan.

Our Rotary Grants
n First Rotary Grant: $42,775 August 2010
n 19 groups; 192 individuals & 386 loans.
n 85% women.
n Collection rate 98%; no loans due >30 days
n Second Rotary Grant $108,300 Sept 2011 is
being loaned now.
n We need your $ support for 2011-2012
Matching Grant to offer new loans.

Your contribution will make a big difference right away
to our borrowers. Because these are high margin
businesses (50-100%), the spouse can generate almost
as much additional income from her first $200 loan as
her husband is making in a month ($40-50 a week).
The extra income pays for business growth and also
makes a dramatic difference for her family right away.
As her business grows and she is able to borrow an
additional $200 every four months, the positive impact
grows and grows. Imagine the difference in her family
situation and her pride and self esteem when she is
borrowing and repaying $1200 after two years.
What a significant difference your support will make to their lives
and their hopes for their future!

Our Promise for Your Contributions
n Paul Harris credits $ for $
n 50% Match by TRF
n 100% of contribution will be loaned
n 98% will be collected annually
n Re-loaned 3 times per year for decades to make
a real difference close to home.
n Tax deductable for individuals
n Life Changing for Borrowers and Families

A Question for You and
Your club
Will you join us in this
micro credit loan project in
Nogales, Mexico?

How to Contribute to this <strong>Microcredit</strong> Matching Grant
Make check payable to <strong>Rotarian</strong> <strong>Microcredit</strong> Mexican Border, FHRCF.
Include your Rotary membership number if an individual, or club number if a
club so you will receive Paul Harris credits.
Mail to Wayne Rish 13374 East Cannon Drive Scottsdale AZ 85259-5406.
For clarification or questions contact nwrish@gmail.com.
The Fountain Hills Rotary Club Foundation is a 501 c 3 non profit with tax
ID # 86-0667652. Club Foundation acknowledges that no goods or services were
received in exchange for your donation.
Please note that the Rotary Foundation will provide a receipt for this same amount
when the Rotary Foundation receives these funds. Either the club foundation
check or the Rotary Foundation receipt may be used for tax purposes, but only
one tax deduction may be claimed.
Thank you for your Support and Participation in this <strong>Rotarian</strong>
sponsored microcredit Matching Grant in Nogales, Mexico!