Nine months after the launch of the Bless Back Business Academy, a Business Academy Fund was created to help finance the growth of participating business clients in Nicaragua. Most of the businesses are too small to receive bank loans; their only option is to use private lenders (loan sharks) who provide short term loans with very steep interest rates, often up to 50%. The Business Academy Fund helps to fill the financing gap for small businesses to help them expand their revenues and profits.
Our microloan process currently requires business clients to complete 3 business workshops in addition to an extensive microloan application, which is reviewed by the Bless Back microloan committee. Approved loans are then distributed, monitored, and collected by our Head Coach.
The Business Academy Fund is fully supported by donors. As loans are repaid and the funds are recycled into new loans, each initial $1 of donation in 2016 has generated $2.50 in loans. This ratio will continue to expand over time as the fund continues to re-invest in approved businesses. We need your financial support. Help us Fill the Financing Gap in Nicaragua.
