The US Agency for International Development (USAID), a government institution that provides economic and humanitarian assistance, and Volunteers for Economic Growth Alliance / International Executive Service Corps (VEGA/IESC), a US-based partnership focusing on private sector development, recently announced the commencement of the second phase of the Lebanon Investment in Microfinance (LIM) program, which will provide funding to seven microfinance institutions (MFIs) in Lebanon: Association for the Development of Rural Capacities (ADR); Association d’Entraide Professionelle (AEP); Al Majmoua; Ameen; Lebanese Cooperative for Development (CLD in French); Emkan; and Makhzoumi Foundation. LIM provides financing to existing MFIs to expand loan portfolios, reach out to underserved markets and develop new microfinance products.
In the first stage of the LIM program, which was launched in May 2009, USAID provided financing of USD 1.05 million to expand lending portfolios. After multiple loan cycles, the MFIs loan portfolios have grown to a total of USD 3.5 million The second stage of the LIM program is expected to last until April 2015. Although the LIM program has a budget of USD 12 million, it is unclear how much of this will be allocated to each of the MFIs.
USAID offers a suite of resources aimed at improving the outcomes of microenterprise development research and practice at http://microlinks.kdid.org/
By Rohan Trivedi, Research Associate
About The United States Agency for International Development (USAID):
The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides credit guarantees that cover up to 50 percent of defaults on wholesale loans made by private financial institutions to institutions that lend on a retail basis to underserved borrowers. The proposed USAID budget for 2011 is USD 18.8 billion.
About Volunteers for Economic Growth Alliance / International Executive Service Corps (VEGA/IESC):
VEGA/IESC is a partnership led by Volunteers for Economic Growth Alliance (VEGA), a US-based “consortium of economic growth volunteer organizations,” and International Executive Service Corps (IESC), a US-based nonprofit that assists in the development of international financial institutions. VEGA/IESC is a partner of the United States Agency for International Development (USAID), a government agency that provides international economic and humanitarian assistance.
About Association for the Development of Rural Capacities (ADR)
Association for the Development of Rural Capacities (ADR) is a Lebanese nongovernmental organization (NGO) that was established in 1998. ADR offers programs in agriculture, social services, vocational training and microcredit to rural communities. As of January 1, 2010, ADR had a gross loan portfolio of USD 2.2 million and 1,418 loans outstanding. ADR does not report financial information to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider.
About Association d’Entraide Professionnelle (AEP):
Association d’Entraide Professionnelle (AEP) is a Lebanese nonprofit organization that was founded in 1984. AEP provides microcredit for agricultural and environmental projects. In 2010, AEP reports having disbursed 898 loans with a total value of USD 3.13 million. AEP does not report financial information to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider.
About Al Majmoua:
Al Majmoua, also known as the Lebanese Association for Development, is a nongovernmental organization (NGO) that was launched as a microcredit program in 1994 by Save the Children, an organization that was founded in the United Kingdom in 1919 with the goal of aiding children affected by World War I. Al Majmoua aims to contribute to the well-being of low-income Lebanese people with the tools to become financially independent. As of December 31, 2010, Al Majmoua reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 22.9 million in assets, return on assets (ROA) of 6.33 percent, return on equity (ROE) of 9.72 percent and 23,417 active borrowers. Al Majmoua last reported its gross loan portfolio on December 31, 2009, when the figure stood at USD 14.4 million.
About Ameen:
Ameen is a microfinance institution (MFI) created in Lebanon in 1999 as a microcredit program by CHF International, a US-based development and humanitarian organization. Ameen seeks to provide financial and business development services to support small-scale entrepreneurs. As of September 30, 2009, Ameen reports to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 17 million, return on assets (ROA) of 2.22 percent and return on equity (ROE) of 10.9 percent. As of March 31, 2011, Ameen reported to MIX a gross loan portfolio of USD 14.3 million and 13,476 active borrowers.
About The Lebanese Cooperative for Development (CLD):
The Lebanese Cooperative for Development (CLD in French) is a cooperative that provides loans to agricultural projects and small businesses with the goal of encouraging people to stay in and relocate to rural areas of the country. According to CLD’s website, the cooperative disbursed 56 loans worth USD 486,500 in 2010. CLD does not report financial information to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider.
About Emkan:
Emkan is a non-governmental organization (NGO) in Lebanon that registered with the Lebanese Ministry of Interior in 2008 and began microlending operations in 2009. Emkan aims to improve the standard of living for Lebanon’s poor population by providing financial services that stimulate job opportunities. Its products consist of individual, home improvement and consumer loans that range from LBP 500,000 (USD 330) to LBP 7.5 million (USD 5,000). Loans supporting small and medium-sized enterprises (SMEs) range from LBP 7.5 million (USD 5,000) to LBP 15 million (USD 10,000). Emkan does not report financial information to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider.
About Makhzoumi Foundation:
Makhzoumi Foundation is a Lebanese nonprofit organization that was established in 1997 by the Makhzoumi family. The Foundation aims to promote the development of civil society in Lebanon through various initiatives including microcredit, health care intermediation and educational centers. As of December 31, 2009, Makhzoumi Foundation reports to the US-based nonprofit data provider Microfinance Information Exchange (MIX) assets of USD 1 million, a gross loan portfolio of USD 423,000, return on assets (ROA) of 3.35 percent, return on equity (ROE) of 3.68 percent and 400 active borrowers.
Sources and Additional Resources:
[1] Iloubnan.info, “US increases access to microfinance for Lebanese Micro and Small Businesses”, http://www.iloubnan.info/business/actualite/id/62172/titre/US-increases-access-to-microfinance-for-Lebanese-Micro-and-Small-Businesses
MicroCapital.org story, November 16, 2010: “MICROCAPITAL BRIEF: Microfinance Operations in Lebanon Begin to Grow”, https://www.microcapital.org/microcapital-brief-microfinance-operations-in-lebanon-begin-to-grow/
MicroCapital Universe Profile: United States Agency for International Development (USAID), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+States+Agency+for+Internationa+Development+%28USAID%29
MicroCapital Universe Profile: Volunteers for Economic Growth Alliance / International Executive Service Corps (VEGA/IESC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Volunteers+for+Economic+Growth+Alliance+%2F+International+Executive+Service+Corps+%28VEGA%2FIESC%29
MicroCapital Universe Profile: Association for the Development of Rural Capacities (ADR), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Association+for+the+Development+of+Rural+Capacities+%28ADR%29
MicroCapital Universe Profile: Association d’Entraide Professionnelle (AEP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Association+d%27Entraide+Professionnelle+%28AEP%29
MicroCapital Universe Profile: Al Majmoua, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Al+Majmoua
MicroCapital Universe Profile: Ameen, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ameen
MicroCapital Universe Profile: Lebanese Cooperative for Development (CLD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lebanese+Cooperative+for+Development+%28CLD%29
MicroCapital Universe Profile: Emkan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Emkan
MicroCapital Universe Profile: Makhzoumi Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Makhzoumi+Foundation
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Al-Qutaibi Funding Renewable Energy Products, Climate Adaptation Strategies for SMEs, Farmers in Yemen in Collaboration with USAID
- MICROCAPITAL BRIEF: Purpl Launches Remittances, Digital Wallets in Lebanon; Partners with Banque Libano-Française, Paysend
- MICROFINANCE PAPER WRAP-UP: “Digital Finance Campaign Replication Guide,” Published by USAID
- MICROCAPITAL BRIEF: Jeff Flowers to Lead FINCA Impact Finance
- MICROCAPITAL BRIEF: Incofin Launches Water Access Acceleration Fund (W2AF) with $39m to Invest in Africa, Asia
