IN EL SALVADOR...
• Over 2 million people live in poverty
• Close to 40% are under or unemployed
• 72% are self-employed
• Only 12% have access to loans
• Only 10% have access to training closer than 10 miles away
ENLACE'S COMMUNITY ECONOMIC DEVELOPMENT (CED) PROGRAM
ENLACE'S CED program has two primary components:
ENLACE works primarily in rural and semi-rural areas where hunger is one of the most pressing needs. The primary aims of the CED program are to increase agricultural production, improve the quality of food products, increase access to food, and reduce malnutrition and micronutrient deficiencies. Upon meeting the primary nutritional needs of a family, the program aims to strengthen the capacity of farmers to generate income through agricultural activities and to improve markets for agricultural products.
Since 1996, ENLACE has helped to start or expand over 3,000 small businesses by providing credit and training to micro-entrepreneurs and farmers. Over the last five years, the program has maintained an excellent loan repayment rate of 99% and has been able to circulate over 1,200 loans for a total amount of $1,457,000. Such success is attributed to the hard work of the entrepreneurs who have received credit and training from ENLACE.
In 2000, ENLACE helped start a credit union called CREDATEC. CREDATEC is a limited liability corporation registered in El Salvador. CREDATEC was created to manage all financial and capital assistance to micro-entrepreneurs. ENLACE has established a trust fund in CREDATEC to on-lend to qualifying micro-entrepreneurs. An independent credit union provides the appropriate legal structure needed while also separating credit and financial decisions and operations from ENLACE, the local church and community associations. (SEE BELOW FOR SPECIFIC CLIENT PROFILES)
The CED program is an integral and important component of ENLACE’s community transformation approach. Since 1993, ENLACE has trained and resourced church and community leaders to alleviate spiritual and material poverty in El Salvador. The CED program is one of ENLACE's four main programs which include Church and Community, Housing and Infrastructure, and Healthy Communities.
MAURICIO JESUS LOPEZ LOPEZ
Mauricio, a credit recipient in front of his chicken stand at San Martin market.
Mauricio has been a client since October 2007 and has borrowed 6 loans within that time with an excellent repayment record. When Maricio started with ENLACE he had been struggling to run a small business in the neighborhood where he lived. At that time he did not own a house and was staying in an abandoned house for shelter. Without a stable address there was not a financial institution that would give him credit.
Through ENLACE’s local office in San Martin, Mauricio contacted our credit advisor, Israel, who met with him and visited where he lived. Israel sat down with him to understand how Mauricio could improve his situation. He also approved him for a loan of $200.00 to be repaid in two months.
Mauricio used to loan to invest in products he could sell in the market, vegetables, fruits and chicken. Eventually, Mauricio paid back the loan and reapplied for larger loans to expand his sales, expanding the types of products he could sell. This year Mauricio is averaging over $100.00 a day in sales.
Mauricio also wanted to save towards purchasing his own home. He looked around for houses that were close to his business and once again approached ENLACE to help him with a loan. The house price was $1,200, and he was approved for a loan for 50% of the value. He was able to pay the remainder from his business. He is now in his own home alongside his wife and six‐year‐old daughter.
Mauricio still has more plans. This year he wants to make expand his house and grow his business further. ENLACE will continue to walk alongside Mauricio and others like him as they grow their businesses and improve the lives of their families.
To see some testimonies click here:
María del Carmen Jovel Corleto
María Jovel raises chickens while her husband works as a janitor in the mayor’s office. She works with two other people who prepare the chickens and then sell door to door in San Martin. She has done this for 24 years and is now trying to work with ENLACE to better understand the profits she is making and how she can grow the business.
- Number of loans with ENLACE repaid on time: 12
Average monthly sales: $4,060
Average monthly income: $550
Mauricio Jesús López López
Mauricio sells in the local street market selling beef, chicken and vegetables. He’s been in business for 12 years.
Number of loans with ENLACE repaid on time: 6
Average monthly sales: $3,220
Average monthly income: $500
Pedro Elías Sánchez
Pedro raises chickens at home and sells them in the local San Martin street market.
Number of loans with ENLACE paid back in time: 1
Average monthly sales: $1,260
Average monthly income: $400
Lorena Carolina Alfaro
Lorena runs a bakery from her home selling a variety of sweet breads and mini baguettes. She’s been a baker for 6 years.
Number of loans with ENLACE repaid on time: 6
Average monthly sales: $700
Average monthly income: $300
Samuel Erroa Torres
Samuel started with a small business selling vegetables from a stand in the street market in San Martin. He is now a well established vegetable distributor.
Number of loans with ENLACE repaid on time: 11
Average monthly sales: $4,200
Average monthly income: $600
If you are interested in how you can contribute to ENLACE's “Community Economic Development” program please email us at firstname.lastname@example.org or give online...