KIVA-+Loan+Justification+Form

KIVA – Loan Justification Your Name: Maddie G. Potential Recipient URL: [] Name: Con Dios Adelante 3,4 &5 Group Country: La Romana, Dominican Republic Type of Loan: Retail Criteria 1. Risk Borrower (Credit history/Personal character): Susan (the co-ordinator of this group) has four children and a husband. She works hard to provide for all of her children. This is her fifth loan; she has paid off every other one. She plans on using this money to purchase more inventory for her women’s clothing and accessories business. This store was started by Susan and her husband seven years ago, and now they feel it is time to expand. From her previous loans, she has learned how to save and re-invest the profits in her business. She hopes to provide employment to many local workers and someday purchase her own house.

Field Partner (Risk Rating, Delinquency Rate, Default Rate): The Field partner is“Esperanza”, a field partner that has sold over 4.1 million loans. The Risk Rating recently dropped from 4/5 to 3/5 only because they have many loans outstanding to their clients. The Delinquency Rate is 2.51 %, and the Default Rate is 0.05%. Esperanza was founded by David Valle and his wife. David was a member of the Seattle Mariners baseball team; he played ball in the Dominican Republic during the winter months. David and his wife could not believe the poor living conditions of the boys and girls. David and his wife knew that they needed to do something to help them.

Country Risk (Economic, Political, Natural Disaster): The Dominican Republic has the second largest economy in the Caribbean. It is an upper middle-class income, developing country. Its most important trading partner is the U.S. The country has a 14.2% unemployment rate, which is modest for a developing country. The Government of this country is a democracy. There is the risk of an earthquake, since the island is between three large tectonic plates. The weather of the Dominican Republic is usually between 28-32 degrees Celsius, year round; therefore, it is never very cool, and a hot it is spot for tourist attraction.

2. Business Plan - __ [| Small Business Start Ups] __ Potential for success: Many tourists visit this country, especially La Romana which is the third largest city in the Dominican Republic. Susan has operated her business for over seven years and has proven she understands this business. She has paid off many previous loans which shows that the Con Dios Adelante 3,4 & 5 Group is responsible to its lendors.

Potential for sustainability: Thanks to the past loans, Susan and her employees have learned business techniques and understand how to save and re-invest money.

Potential for regional economic benefit: This is an opportunity to employ many others, and to help them, and Susan to earn money. Once this business grows there will be many people working for her and this could serve as an example to others.

3. Borrower Perceived level of need: This borrower is not in a life or death situation, but the group is having a difficult time providing for their families in this developing nation. Without the funds, the store will not be able to grow and attract customers putting the store at risk of closing and the employees at risk of unemployment.

Financial responsibilities/commitments of individual: She plans to use this loan to invest in her business to increase her inventory and profits. She is committed to repay the loans and has proven the ability to do so in the past.

4. Summary The Con Dios Adelante 3,4 & 5 Group own a women’s clothing and accessories store. They have already borrowed 5 loans from KIVA, and have successfully paid them all off. With our help they will be able to increase their profits, expand their business and employ many others.

KIVA – Loan Justification Your Name: Maddie G. Potential Recipient URL: __ [] __ Name: Sullay Country: Sierra Leone Type of Loan: Retail Criteria

1. Risk Borrower (Credit history/Personal character): Sullay runs a general merchandise store in Fullahtown, the central part of Freetown, Sierra Leone. He has owned this business for five years. He sells a variety of merchandise including plastics, rubber, flasks, food containers and spoons. His main problems are transportation, inflation and seasonal variation.

Field Partner (Risk Rating, Delinquency Rate, Default Rate): Sierra Leone Microfinance Company Limited, known as BRAC. This company has provided over 100 000 dollars in loans. They have a 0.00% delinquency and default rate. Their risk rating is 3 / 5. BRAC uses a comprehensive approach to help its clients. For example, they provide extensive training and programs in the areas such as health, poultry and livestock and agriculture.

Country Risk (Economic, Political, Natural Disaster): Since the war in 2002 ended, Sierra Leone has been successfully, but slowly, paying off its debt to the U.S. They do not have a strong economy; therefore, they need our help to grow their economy. Sierra Leone has a democratic government and an independent judiciary. Civil rights and freedom of religion are respected. The main risk of natural disaster is flooding.

2. Business Plan -__ [| Small Business Start Ups] __ Potential for success: Sullay’s business is located in the center of the largest town in Sierra Leone, Freetown. Many potential customers pass by his store every day. He has been in business for five years.

Potential for sustainability: Sullay has one employee. With extra money he will buy more inventory and possibly sustain other employees as well. There are few other shops like his in the area. He hopes to educate his children with the extra income. In the future, he hopes to be a wholesaler, and possibly his children will take over his business.

Potential for regional economic benefit: This is an employment opportunity, once Sullay begins to expand. He will learn from this business and hopefully one day become a wholesaler. This could employ more people and create new stores in other parts of the country, increasing commerce.

3. Borrower Perceived level of need: Sullay is getting older and has 2 children, a wife and relatives to take care of. He lives in a developing country with few resources. Without our help he may not be able to grow his store and may not be able to continue his business.

Financial responsibilities/commitments of individual: Sullay is a hard worker who manages two jobs to support his family. He has been in business for many years. He lives in a stable, democratic country.

4. Summary Sullay is a responsible owner of a small store in Sierra Leone. He has little money, but lots of determination. With our help, he will be able to expand his store and employ more people. With this extra income he hopes to be able to educate his children, which would have a positive impact on many lives. Sullay needs our help.