Manglaralto Giving, Inc.
ManoAmigo - Micro Loan Program
Mano Amigo (Friendly Hand) provides interest-free loans to small, existing businesses. Loans are not common in Ecuador. Small businesses in our area have few resources to go to if they want to grow their businesses. Most loan programs charge 20-25% interest and they are very difficult to apply for. Since its inception, ManoAmigo has provided loans to 24 local businesses at a cost of $3,600. This money can be redistributed to other businesses as loans are paid. We modeled our program after a highly successful microcredit program in Salinas, Ecuador who graciously shared their documents and procedures with us.
Businesses apply to Mano Amigo by providing their financial information as well as personal references and photos of their stores/operations. So far, Mano Amigo has made loans to a traveling juice/fruit vendor, a small pig farmer, a bakery, a small grocery store that specializes in homemade peanut butter and coffee, a chicken farmer, a clothing store, an artisan who weaves baskets, a woman who makes sauces and jellies, and many more.
ManoAmigo also has connected with university marketing students to provide workshops for all business owners in the area. During the workshops, participants learned various tips and tricks for photographing their products, developing a social media presence, and logo design. Each participant received hats, mugs, and other items with their new improved logos.
ManoAmigo - Articles
ManoAmigo - Our Process
Our microloan program has loaned $3,600 so far to small existing businesses.
As we begin receiving loan payments and are able to make another round of microloans, we will advertise through Facebook groups to let the community know the requirements they need to have to apply for a loan. After receiving the loan applications, our team meets to decide who will receive the loan. We ask that each recipient sign a contract agreement when they receive the money. Ecuador is a cash-based economy, so we offer loans in cash. We also only accept cash loan payments.
As of July 2023, we have a 96% success rate on loan paybacks. We have one loan recipient who defaulted and moved away, but she did make the first $45 in payments.