| The whole idea is to create a network of | | | | controlling the projects and can concentrate mainly |
| collaborators in order to reduce the risk implied in | | | | on selecting projects considering initial viability and |
| lending to people undergoing such difficult situations. | | | | letting the network to carry on the control. |
| Though simple, the way these programs work is | | | | Purpose of The Funds |
| amazing and can provide a real solution with much | | | | Currently, the only purpose acceptable for the funds |
| better results than mere charity. | | | | is to finance a business, commercial or manufacturer |
| These programs work best on small communities as | | | | project. The amounts offered are quite small |
| the need for several relations between different | | | | because the idea is to help as many people as |
| people is better served on small towns rather than | | | | possible start up a small project to create their own |
| on cities due to the personal isolation that big cities | | | | source of income. These loans are especially targeted |
| (ironically) cause. There are organizations all over the | | | | for those who are unemployed and for those |
| world taking this idea and putting it into practice with | | | | communities that present hardship situations like high |
| the aid of financial institutions and governments. The | | | | unemployment, illiteracy, etc. |
| results are wonderful but let us analyze how these | | | | If the first project works and the money is returned, |
| programs exactly work. | | | | this is recorded at the organization's files and then |
| The Solidarity Concept | | | | more funds can be available for further developing |
| Since one would normally not qualify for a loan due | | | | the project. The inclusion of other members of the |
| to lack of credit or due to bad credit, a network of | | | | community in the project can be required. This tends |
| co-signers is generated. A group of people oblige | | | | to generate employment and boost the community |
| themselves to repaying the loans and the loans of | | | | to escape from the vicious circles that hardship |
| the others as well in case someone fails to repay the | | | | implies. |
| loan. Thus, the risk is reduced for the lender and the | | | | The consequences of these programs on |
| borrower can obtain financing. The group carries out | | | | communities are not only economical in nature, there |
| a kind of control over the individuals and their small | | | | are many positive cultural, health and humanitarian |
| business project to make sure they will not have to | | | | implications that show how advantageous |
| repay the other loans themselves. | | | | implementing these projects can be. |
| Thus the network works both as a co-signing team | | | | Whole communities that where disappearing for |
| reassuring repayment for the lender and also as an | | | | different reasons have seen their towns flourish again |
| assurance of the viability of the business project of | | | | thanks to this new concept loans. This is a great |
| each of the individuals that requested the loan for | | | | example of how small things (small amounts and small |
| starting the project. This way, the non-profit | | | | ideas) can achieve great results. |
| organization reduces the costs associated to | | | | |