SAN MIGUEL
SUA
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IMPROVED EMPLOYMENT FOR A GROWING FAMILY
FINANCIAL PROJECT
Province: Esmeraldas
Canton: Sua
Neighborhood: Nuevo Porvenir
Beneficiaries: 16 families
BACKGROUND
The town of Sua, located on the Ecuadorian coast, was affected by a flood on January 25, 2016, the water reached up to 1.20m high, the residents lost animals, furniture and most of the houses were damaged. Later came the earthquake on April 16 that damaged homes and therefore around 30% of families have abandoned their homes. Faced with this difficult situation for our Ecuadorian brothers and sisters, FEDICE with the support of Global Ministries in June 2016, visits these families and begins the work, to give support to some families so that they can continue with their economic activities basically related with fishing and tourism.
OBJETIVES
General Objective
Establish a financial organization that provides financing for family micro-projects with the New Hope, women´s group in Sua.
Specific Objectives
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To give loans with a low interest.
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To encourage unity and self-support among participating families
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Periodically carry out monitoring and evaluations of the project
Goal
This project is a financing alternative for family businesses, in such a way that it allows access to low-interest resources for a period of time appropriate to local needs.
In addition, this organization is an appropriate substitute for the offer of credits of the traditional financial system that demand difficult requirements for the families and at high interest rates.
RESULTS
Beneficiaries
In these three years the number of beneficiaries has decreased by 14 families. Today the organization is made up of 16 families. The reasons why the families were excluded are the following: 1. Lack of attendance at meetings, 2. Failure to pay the loans received, 3. The beneficiaries did not wish to continue in the organization, and 4. They were excluded because they are living in another city.
How they use the resources
In 2016 the organization began granting loans for a maximum value of $ 300.00 Currently, the women from the group have access to loans up to $ 1,000.00, they are paying it in monthly installments, for the money they receive they must pay 12% per year on the value of the capital. Both the interest and capital borrowed go directly to form part of the assets of the organization.
Beneficiary families allocate the money to finance activities such as: purchase of seafood, handicraft production, sale of beachwear, food preparation and sale; chicken raising
Capital from the organization
FEDICE gave the organization $ 9,000 as a donation in 2016, it was $ 300.00 each of the 30 families that started the group. For the resources to be 100% of the Sua families, they must demonstrate that the capital received is growing and that it will benefit all participants during a period of 5 years. Furthermore, when a family is excluded, the recovered capital is returned to FEDICE. During this time, FEDICE carries out the respective monitoring and periodic evaluation of the results that are achieved.
In this moment, the organization maintains a capital assigned by FEDICE for a value of $ 4,800 ($ 300.00 for 16 families) of the $ 9,000 delivered in 2016.
The $ 4,200 that the fund decreased are due to the following reasons:
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Eight people did not return the resources to the organization, and,
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Six people withdrew and the resource was reimbursed to FEDICE.
The organization “New Hope of Sua” has achieved sustained capital growth despite the difficulties. The economic results as of February 2021: Credits receivable for $ 9,400, Cash for $ 1,440. Total, Asset $ 10,840.
Impact
The families have confidence and are motivated to continue working, the extra income is used to invest in their families.
We are generating a positive impact on local investment, families have resources to buy merchandise or raw materials, the same that in the future will be offered to the inhabitants and tourists who come to Sua.
On the other hand, there is a positive economic impact, the beneficiary families have their own capital that generates an extra income (interest) that remains in the organization and benefits the families.