In the rural villages where SHI's assistance has been requested, there are no government or private institutions offering economically disadvantaged families financial assistance to establish and expand microenterprises.  SHI is working with the Trickle Up Program (TUP) to support families to start microenterprises.  SHI provides a small amount of seed capital for community loan funds, which the community members match.  The communities set interest rates, establish lending criteria, originate and administer the loans.  Since the loan funds are run by the local people, rates are very reasonable, defaults are practically non-existent and return on capital is high. Every community member feels a real personal investment in the lending process.  

     Together with TUP we also offer families training to start micro-enterprises.  When businesses start to make a profit, the families repay the seed capital provided by TUP to their local loan fund.  Families involved in this program learn many important business skills to help them manage their own small businesses.

     So far we have established 23 community loan funds that have increased their capital by 32%.  A Honduran community loan fund group called "25 de Mayo” has experienced great success. They used their seed money to build a store that buys and sells seeds.  With the capital earned, they have bought these silos (shown above right) that the group uses to store seeds and crops harvested by the group.

Click here to read a testimonial from members of the community loan fund group in Rio Blanco, Honduras.