Microlending skills learned in sewing centers create business enterprises
The microlending project is a joint project between the Wisconsin Partners and the Nicaragua Companeros. It is a logical extension of the Sewing /Learning Centers which have been teaching women sewing and baking skills for 30 years. Many women, having learned to sew, now would like to start a home business sewing for their neighbors or the local market. But they do not have the funds to buy supplies to get started. This is where the microlending project can help.
The Wisconsin Partners Microlending Committee, the northern half of the partnership, has the responsibility of getting the funds, working with the Companeros to develop policies for the project, helping with business training of the women, and approving funds to be loaned. The original funds for the project were donated by Madison West Rotary for a microlending project. Additional donations by others increased the amount of funds available.
The Nicaragua Companeros Committee, the southern half of the prtnership, has the responsibility of selecting women for loans, giving them business training, approving them for loans, make the loans, and collect the payment made for the principle and interest on the loans. The money collected is deposited back into the Wisconsin Partners account to be used for additional loans to other women. The interest earned, and perhaps some additional funds are used to pay costs of administering the project.
In November 2005, twenty women were selected for the first round of loans, and participated in the business training workshops as a group. To qualify for a loan, each woman must make a business plan indicating what her business will be and how the loan will be repaid. One woman is appointed chairman of each sewing center group, and keeps records of each woman's loan, collects the payments and deposits them with the Partners office.
The groups meet monthly to receive more training, share their experiences, and support each other. Nineteen women received six month loans of $115 for a sewing business, and one for a baking business. All repaid their loan by summer of 2006 and twenty two women were selected and received ten month loans in November 2006 for a second group to receive loans.
The economic value of twenty small businesses in communities is obvious. What is more important is the enthusiasm of the women to learn new business skills, and the self confidence they have as they when they are successful. They are looked up to, and become leaders in their community.
As more funds become available, more women will be given loans. Contributions to Wisconsin Nicaragua Partners can be designated for Microlending.
