The Facts about Microcredit

Microcredit loans are small sums of money loaned in the context of a social network that supports women who want to start businesses and become more self-sufficient. These loans of $100 change the lives of women and their families in very profound ways.

Each $100 donation will provide a loan to one of the women listed below who are involved in this bank.  Each woman who chooses to get involved in the program must attend 8 lessons on business management, and submits a business plan.  Women in the bank hold themselves and each other responsible by cross guaranteeing the loan payments in their group or others in the same group if necessary.  Women are expected to make all of their loan payments on time.

FFW has set up Centre Advisors for the women to come to for advice.
For every woman empowered by this project, five family members are also directly affected.

Each time a woman is successful in correctly repaying a loan, she qualifies for a larger loan.  In this way, women can work hard to climb out of poverty.  In addition to this, when a woman repays her loan, the funds go back into the system to be re-loaned out to even more women so your initial investment never stops giving!

Using the Nobel Prize-winning Grameen method, the Foundation provides lessons in financial and business management during the 25-week loan cycle. Meeting weekly, the women support each other and learn while they make loan payments and deposits to their personal savings accounts. The loan repayments rate is 99%.

Each woman involved in this bank:

• Acquires essential capital with which to start a business
• Creates a business plan
• Uses her loan to buy materials and equipment, or promote her business
• Establishes a personal savings account, probably her first ever
• Establishes credit history by repaying her loan on time
• Qualifies for a renewal loan, perhaps at a higher level
• Successfully builds her business, perhaps hiring employees
• Gains education in financial and business matters
• Builds support among other women in her borrowing circle

As each borrower builds her business, she improves living standards for herself and an average of five other people, primarily family members.
Microcredit offers women in poverty the opportunity to improve life for themselves and their families. Micro-loans make a huge difference!

With her business plan and this tiny loan a woman can:

• Buy beads and make jewelry
• Buy cornmeal, meat and make tamales
• Purchase grain in large quantities to repackage in smaller amounts to sell at the market
• Get a phone and become the pay phone for her neighbours
• Buy supplies and start a hair-braiding business, eventually reaching her goal of buying her own salon business

As you can see below, each woman listed has stated the business she wishes to be involved in.

Subgroup: KPORGEAMA
Betty Mulbah   [Business: Red Oil Dry Goods]
Gorma Dolo   [Business: Home Table market]
Angeline Ricks   [Business: Dry goods]
Elizabeth Gorkpah   [Business: Fresh fish and meat]
Nancy Ganmue   [Business: Clothes]

Subgroup: UNITED SISTERS
Jackorline Quoie   [Business:  Bread and doughnuts]
Gorma Benson   [Business: Dry fish]
Quata Sumo   [Business: Cloth]
Sannie Dolo   [Business: Table market]
Victoria Zulu   [Business:Table market]

Subgroup: BY GRACE
Krubo Nglaateh   [Business: Drink, biscuits cool water]
Yamah Gayflor   [Business: Food]
Mary Jones   [Business: Food]
Yamah Mayango   [Business: Dry goods]
Catherine Logan   [Business: Drink, biscuits cool water]

Subgroup: KUKATONOR
Edith N.K. Willie   [Business: Food stuffs]
Quita Mulbah   [Business: Small Table food market]
Deborah Mulbah   [Business: Small shop, drinks]
Esther Smith   [Business: Small shop, food stuffs]
Martha Seaffia   [Business: Chalk coal and red oil]

Subgroup:WELEKEMA
Quita Sulon   [Business: Red Oil]
Nymah Flomo   [Business: Small shop, dry goods]
Esther Smith   [Business: Small shop, dry goods]
Sarah Mulbah   [Business: Iron round soap]
Senneh Dolo   [Business: Bread and small market]

Subgroup: KPELEMAN
Yongar Dogood   [Business: Small table market]
Yarmah Sumo   [Business: Small table market]
Gertrude Mulbah   [Business: Small table market]
Annie Beway   [Business: Iron round soap]
Esther Kollie   [Business: Red oil market] 

Update from the field: May 2010

FFWL attended the Africa-Middle East Microcredit Summit, one of the largest groundbreaking regional programs to address the concerns of global poverty. Microcredit practitioners and researchers from more than 40 countries assembled the six-day proceedings, held in Nairobi, Kenya April 7 – 10, 2010.

FFWL’s extraordinary loan performance during Liberia’s ongoing transition from a post-conflict backdrop into that of a politically, economically, and socially stable state is demonstrative of the benefits of the FFWL’s social lending model. To that end, Mrs. Emily Guegbeh Peal, Chief Executive Officer of FFWL, sat on the panel slated to deliberate on the thesis “Microfinance in Post Conflict and Post Disaster Situations”. Mrs. Peal’s consideration of the FFWL microcredit program took note of the usefulness of microcredit as a tool for poverty alleviation in a post conflict setting. Microcredit has a considerable effect on the quality of life for individuals and how access to credit by extension allows people to start building trust in their communities and the in institutions that support them.

The benefit of this support make is possible for FFWL to expand its reach into remote areas of the country with positive results. These interactions ultimately uncomplicated efforts for FFWL as we strive to adjust quickly to the changing needs of our beneficiaries.