Working Capital for Community Needs (WCCN), a U.S.-based non-profit, has offered loans totaling USD 530,000 through their Nicaraguan Credit Alternatives Fund (NICA Fund) to Cooperativa de Servicios Multiples 20 de Abril R.L. and Cooperative San Antonio, as reported to the CGAP Microfinance Dealbook.
Formed in 1984 as the Wisconsin Coordinating Council on Nicaragua, WCCN originally focused on political activism and aid to Nicaragua. In the 1990s, WCCN redirected its mission toward social and economic development issues and partnered with the Nicaraguan Council of Protestant Churches (CEPAD) to fund a microfinance institution. Today, WCCN provides financing to 15 MFIs in Nicaragua, and is expanding lending to Guatemala, El Salvador, and Honduras. To complement its microfinance activities, WCCN also pursues initiatives on women’s empowerment, housing, and fair trade.
WCCN’s main project is the Nicaraguan Credit Alternatives Fund (NICA Fund), which channels funds from socially responsible investors to partner microfinance agencies. Currently, the NICA Fund has USD 9.2 million in loans outstanding to its partner MFIs, reaching over 16,000 low-income Nicaraguan borrowers. NICA Fund Notes were recently made available on MicroPlace.com, as described in this MicroCapital story.
Through the NICA fund, WCCN has offered a loan of USD 355,000 to the Cooperativa de Servicios Multiples 20 de Abril R.L. (The April 20th Cooperative), an MFI operating in the remote rural area of Quilalí, Nicaragua. The April 20th Cooperative offers both financial and non-financial services including storage and marketing assistance, savings, life insurance policies, as well as loans for housing, agricultural production, and small businesses. According to the MIX Market, the microfinance information clearinghouse, the April 20th Cooperative has a gross loan portfolio of USD 12.5 million, serving 10,270 clients.
WCCN has also offered a USD 175,000 loan to Cooperativa San Antonio (CSA), an MFI working in the remote areas of eastern Nicaragua. CSA offers financial services, as well as technological training and assistance to 821 borrowers, with a total loan portfolio of USD 1.6 million (as of December 2006). CSA does not report to the MIX Market. Both two-year loans were offered at 10 percent interest.
By Jaclyn Berfond, Research Assistant
Additional Resources:
Working Capital for Community Needs: Homepage
MicroCapital Story: MicroPlace Offers Online Microfinance Investment in Nicaraguan Credit Alternatives Fund issued by Working Capital for Community Needs with Interest Rates up to 6 percent
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