The Arizona Rotary Microcredit Program empowers low-income entrepreneurs in Sonora through accessible small-loans and financial training. With our sustainable program of development, we help to drive economic growth in the region and empower our closest neighbors in Mexico. ​
Our process
Individual
Donors
How does microcredit work?
Rotary Foundation Global Grants provide the initial capital, by matching funds raised by two participating clubs in districts 5495 and 5500. Additional funds are donated both by Rotarians and other individuals to expand the financial base of the program.
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Borrower groups of 5-12 individuals are formed by CrediSilvia, our in-country financial partner. Loan requests are reviewed, and if approved funds are distributed to individuals within the group
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The Rotary Microcredit Committee arranges visits for Rotarians and other individuals to observe how borrowers utilize the provided funds as well as how these funds impact their business development and family well-being. This information is gathered using a Borrower Survey conducted during the visit at the borrower's place of business.
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Monthly financial data is collected by CrediSilvia and presented to the Microcredit Committee, which reviews each account. The provided information includes the group name, loan amount, business type, amount repaid for each loan, and the outstanding balance. We also see the percentage of delinquency, and the bank statements for all transactions. ​
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Borrowers improve their businesses and repay loans. These funds can be used to provide new loans
Why Microcredit?
Microcredit and Women
The majority of impoverished people are female, with 1 in 10 women living in extreme poverty. Women are more likely than men to live in poverty because of low wages, lack of legal rights, and expectation of free labor such as childcare and housework.
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Impoverished women often make their money through informal labor, such as small businesses. Microcredit seeks primarily female borrowers in order to advance improve these small businesses and advance the opportunities of women in developing countries.
