Although microfinance was until recently derided as little more than an idealistic gamble, it embodies, more than any other financial system today, the very best ideals of early Western capitalism.

The purpose of Lending Hope is to provide the basic tools for success to our Micro-entrepreneurs: Education and capital. Why it Works is the comprehensive approach that Lending Hope has designed to provide a complete package to insure that we reach our ultimate goal: to pull individuals out of poverty, one family at a time.

With the donations provided by caring individuals like you, Lending Hope will first utilize the funds to establish Business Workshops in different Cities. These classes are given weekly, two and a half hours of useful, high impact information, for a period of three months. We will give our candidates the basic hands-on knowledge of what they need to establish a small business, how to choose the type of business, how to obtain licenses, pay for their taxes, and introduce them to the essential concepts of simple accounting, concepts such as budgeting, accounts recievable, accounts payable, cash flow, hiring, marketing, advertising, and competition. In addition to the business concepts, we will also cover possibily the most important aspect that contributes to our program success; we instill in our candidates the ideals of the Integral Human Developement, the concept of responsibility to themselves, to their families, neighbors, and society overall.

Lending Hope incorporates in our Workshops the importance of family support and team work to ensure the ultimate success of our Micro-entrepreneurs. The Micro-business will then become a family endeavor, where the wife will count on the support of her husband and children, and vice versa. At the conclusion of the workshop, the candidates will present a written Business Plan. This business plan will obligate them to focus on their ultimate goal and how they intend to make their business a success. Candidates will list their strengths and weaknesses, write out their own budget, spell out their hours of operation, a list of goals, and even provide a list of what is needed and how much is required to enable them to start their small business. This small exercise has proven to be a crucial ingredient that will help improve their chances of success, a thousand fold.

Click here to see a candidate sample Business Plan.

AFter the candidate graduates from the Business Workshop, we will have the presentation event where the qualified people will obtain their Micro-Loan. The amount of the loans are anywhere from $50 to $300 dollars. Typically loans are repaid within 6 to 9 months time, with a monthly interest of 2% on the decreasing balance, which translates into less than 13% annual interest rate. In comparison, other Micro-lenders in the market are offering their assistance at average interest rates of 60% to 100%. Lending Hope's decision to even charge an interest rate is mainly to educate our candidates the responsibility that comes with this loan. They not only need to invest their limited resources wisely, but do it in such a manner that they will secure a profit and be able to repay their loan with inerest added, to ensure the continuation of this important cause and become themselves empowered in helping the next candidate in need.

Our local wolunteers, who serve as Lending Hope teachers in our programs, are mostly people from the same neighborhood. After three months of weekly classes, a personal bond is fostered within the group of participants. They know they can count on the support of Lending Hope's team, even after the classes are over. Teachers and participants become friends and there is concern for eachother's wellbeing. This spirit of cooperation translates into success in their own individual projects and the success of our program overall. Loan repayment rates are very high because their obligation to Lending Hope becomes a personal challenge and a personal obligation to repay a friend.