- I was minding my own business in Haiti when, in late 2006, I
suddenly found myself "surrounded" by my mom and Daryl Knauer -- they
simultaneously inquired about the possibility of starting a microloan
program. After some very useful discussions, Daryl wrote this appeal for the Church. The outpouring
was very generous (from church members, as well as from other churches
and individuals).
Our first loans were made in April of 2007. Administrators were our trustworthy friends Fedrina and Mama (Mama's on the right; Fedrina's on the left):
- Here is our original description of the program: Zanmi Fanm e Progré a Rankit (Friends of Women and Progress in Ranquitte), including early photos
- Our first success: "Ranquitte has a
new Avon lady!"
- Things were going great a year after the fund was established. The
women in the program got together to share their satisfaction with the
program:
- There had been no defaults.
- At this stage, we released the administrators to begin making
larger loans. They'd gone through their training period, had done a
good job, had followed all of our plans to the letter, and were eager
to expand opportunities to women. Remember those donkey loans? Here's
one of the donkeys!
- More pictures
- When we visited in 2010, Roger had just two more payments to make to complete his loan repayment (which he did, on schedule) for "Roi-Mart".
- There had been no defaults in almost 3 years.
- The women were delighted with the program, and gave many
moving testimonials about the value of the projects:
- As of January 2010, 82 loans had been made to 37 different women (those who successfully completed one were considered better risks, and could re-apply).
- Mama was bidding goodbye to Haiti, moving to the States with her
American husband. Fedrina would take over all of the administration
duties going forward.
- More pictures
Suggested Minute for Mission for 2/22/2015.
Things continue to go well for the microloan program. Although we've not been back to Haiti for over five year, my good friend Tom Durant goes down regularly, and he's been keeping tabs on things for us.
Fedrina has continued to administer the program alone, halving the administrative costs -- bless her heart. But, as the fund drains out, she has grown concerned and asked about whether we might keep it going. She sees great value in the program, and knows how positive its impacts have been.
The exciting news is that the program is still going, and is on schedule; the bad news is that "on schedule" means that the fund will go broke within the next two years.
You see, the program was designed to atrophy to nothing at the end of about 10 years, assuming that the funds were not replenished. And that is precisely what is happening. We paid the first three years' administration fees, and then stopped, and the fund is now going dry as the modest administration fees have been subtracted from the principal.
Recall that the loans were made interest-free from the beginning, quite intentionally.
The program has been uniformly successful. The default rate is essentially zero (see Tom's update, below). Women's lives have been transformed. It seems like a good time to go back to Haiti to restore the capital in the program.
I suggest that a "donkey loan" of $120 is still the appropriate starting value for a loan, which is repaid at $10/month for 12 months (i.e. zero interest).
Here are some suggested "Lenten discipline" levels:
- $10: The "Every donkey needs a bridle" level
- $20: Give up a Jackson for Lent
- $40: Lenten special: $40 over 40 days.
- $60: Find a friend and buy a donkey!
- $120: the original "donkey loan"; the "Donkeys in lieu of Starbucks" level.
Please help: make your contributions to the church, indicating that they're destined for the Microloan Lenten discipline.
Thanks!