Rotarian Microcredit on Mexican Border Revolving Loan Matching Grant Nogales, Mexico

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

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

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

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

Our Rotary Grants First Rotary Grant: $42,775 August 2010 First Rotary Grant: $42,775 August groups; 192 individuals & 386 loans. 19 groups; 192 individuals & 386 loans. 85% women. 85% women. Collection rate 98%; no loans due >30 days Collection rate 98%; no loans due >30 days Second Rotary Grant $108,300 Sept 2011 is being loaned now. Second Rotary Grant $108,300 Sept 2011 is being loaned now. We need your $ support for Matching Grant to offer new loans. We need your $ support for 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 Paul Harris credits $ for $ Paul Harris credits $ for $ 50% Match by TRF 50% Match by TRF 100% of contribution will be loaned 100% of contribution will be loaned 98% will be collected annually 98% will be collected annually Re-loaned 3 times per year for decades to make a real difference close to home. Re-loaned 3 times per year for decades to make a real difference close to home. Tax deductable for individuals Tax deductable for individuals Life Changing for Borrowers and Families Life Changing for Borrowers and Families

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

How to Contribute to this Microcredit Matching Grant Make check payable to Rotarian Microcredit 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 East Cannon Drive Scottsdale AZ For clarification or questions contact The Fountain Hills Rotary Club Foundation is a 501 c 3 non profit with tax ID # 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 Rotarian sponsored microcredit Matching Grant in Nogales, Mexico!