The Barrio Alegria Microlending program provides micro-loans to community members and entrepreneurs at low interest rates. The goal is to connect micropreneurs to much needed funding and help community members raise their credit scores.
Microlending Circles are established, with 5 to 12 individuals per circle. Each member of the Circle receives low interest loans ($500 to $5,000) which they pay back over the course of 12 to 24 months.
The program is paired up with financial wellness workshops that focus on overcoming limiting beliefs and roadblocks to financial success.
We also help businesses obtain tools to grow their businesses: workshops and networking opportunities as well as connections to resources in the community.
In our experience, we have found that micro-entrepreneurs struggle with accessing available resources and that there are some critical mindset pieces that prevent them from
reaching their potential.
What services we provide
Microbusiness support service
Low interest loans
One of the microlending program participants has seen his credit score improve from 590 to 744. During one of the first meetings with the group, he expressed disbelief that his credit score could improve, but he is now a believer. At the latest meeting, he announced that he had qualified and received a credit card!
He says, "if I was able to do this, anybody can!"
For 5 weeks, we surveyed 35 local entrepreneurs and held 4 focus group sessions. The surveys and focus groups were designed to gauge business needs and
determine appetite for lending products or business services
Can I see that Research?
Of course, after it was completed, we published the research on a report and it is available on our website on the link below:
34% of surveyed business owners had received at least 1 loan in the past.
Of the 66% of business owners who have never received a loan, the majority indicated that they assumed they did not qualify and therefore have never tried to get one.