Nicaragua is Latin America's poorest country, with some of the worst indicators for human welfare. Three quarters of the poor live in rural areas, and half of these are extremely poor, unable to meet their daily food needs. Unemployment is extremely high. Under these economic conditions starting a business is not a real possibility for the vast majority. 

          $150 will provide a loan for one individual or family

Rainbow Network encourages many families to establish their own micro-business by offering small loans. These enterprises not only increase monthly income, but also enhance self worth.
 

A group of about 20-25 families is organized into a community bank.

$3,000 will provide a community bank for 20 people

Each member receives a loan, usually equal to about $125-$150, to be used for commercial activity.

Each member of the community bank is responsible for repayment of his or her loan, and members of each bank agree to guarantee the loans of the other members.

Loans are usually set up for a 4-6 month repayment cycle. Some families participate in two or more loan cycles each year, often doubling and tripling their annual cash income.

Hundreds of families use loans to buy livestock, manufacture hand made products, buy and sell vegetables or basic grocery items and more.

           
             A woman uses micro-loan money to make
             and sell home canned food.

            A dozen sewing co-operatives have been organized
             to involve 100 families. Each business of six sewing
             machines organizes to sew, sell, and keep records.


      
                              Signing paperwork to obtain a loan.