HERE’S HOW MICROENTERPRISE LOANS WORK
A $50 Microenterprise loan can enable a family to buy tools, seeds, equipment, or livestock. Some borrow to finance small craft businesses, or farming.
Capital invested wisely, can almost always lead to better incomes, more nutritious diets, improved housing and access to healthcare and education.
As these businesses grow, they are sometimes able to employ more people, helping others in the community. When these loans are repaid, (98% are usually repaid in full) that capital goes back into the community Microenterprise fund and is re-loaned to start another new business or grow an existing one. In effect, Micro loans replace the cycle of poverty with a cycle of
prosperity and opportunity.
A HAND UP, NOT A HAND OUT
Micro loans not only create better lives for the initial borrowers, they can also create jobs down the line.
• For every new job created, 13 lives are positively impacted.
• For every 2.3 jobs created by our Christian partners, one more job is generated in the local community.
• All TEAR Fund Microenterprise borrowers are trained and mentored to grow their business, hire local staff, and create even more
opportunities for their families and additional people in their communities.
MICROENTERPRISE IS MUCH MORE THAN
Along with providing initial capital, local TEAR Fund field officers also offer many essential pre-loan and post-loan services including:
• Training and mentoring in skills needed
• Business and leadership development
• On-going financial advice
Our experience has proven that money alone doesn’t guarantee success. But access to working capital along with education, training, and on-going
consultation almost always does.
HOW YOU HELP
Don’t underestimate the value of what your donation of a few dollars a month can mean in the long term —not only for one person or family, but potentially for entire communities. Every dollar you give really is a gift that grows – forever.