Microloans Continue to Inspire El Sauce Entrepreneurs

Enrique Corrales preparing to teach the financial course.

During Enlace Project's expansion in the past couple years, the microloan program became one of the organization's most important and unique tools in empowering the community of El Sauce. By providing locals with small sums of money with exceptionally low interest rates, the program has seen both high level of interest and success. The paid back loans are then used for the next round of microloans.

The latest round of loans consists of six first-time applicants who have signed up with their own business ideas. The loans will be distributed by mid-November, after the recipients participate in a 3-week course and create a business plan for how they will use the money. The course, which began Monday October 21, focuses on financial education, accounting, and creating and revising the business plan.

Enrique Corrales, the director of the program, tries to keep ideas for the course fresh and innovative. This round, he is hoping to promote the opening of savings accounts for businesses so that they can better manage their funds. Conrad Wright, Peace Corps. business development volunteer for El Sauce, has also joined Enrique to consult any and all entrepreneurs who come to him with questions or seeking advice.

The participants, as well, have innovative ideas for their businesses, including a pastry shop, a silver and jewelry shop, and a natural medicine business.

--Written by Sean Conner

MICROLOAN FAQS AND STATISTICS

What is a microloan?

Microloans are small amounts of money presented in the form of a loan to small entrepreneurs and business men and women. The loans have low interests rates that are paid back over a set period of time.

Who can receive a microloan?

The newest group of microloan participants in the financial course.

Business owners or those with an idea for a business in El Sauce can apply for these loans with a specific use in mind, often to improve the resources available to their business. Some applicants have previously received a loan, and are eligible for a second if they paid the first one back on time.

How much can one person receive?

First loan: up to $200
Second loan: up to $300
Third loan: up to $500

How many loans has Enlace Project distributed?
Since 2012, Enlace Project has distributed 63 loans to a range of businesses including restaurants, clothing stores, transportation services, bookstores, and more.

How are microloan recipients chosen?
The microloan program has spread by word of mouth to many business owners. They visit Enlace Project’s office to inquire about the program. Since Enlace does not have the funds available to run the program year-round, we call those interested when there are funds for a round of loans.

Rigoberto Ruiz, a former recipient of a loan. Read about other participants here.

What are the requirements to receive a loan?
In order to participate, applicants must be able to read and write, and be of 18 years of age or older. Prior to receiving the loan, all participants must attend a series of classes on good financial practices.

What is the focus of the financial class?
Enlace Project is proud to offer classes to the participating small businesses owners to help the loans to be used the best they can be. These classes include how to create a business plan, keep track of finances, and book-keeping skills.

How does Enlace Project follow up with recipients?
After loans are distributed, Enlace Project regularly makes visits to the recipient’s businesses to see how their businesses are and assist them with their bookkeeping. Those participants who wish to apply for a second or third loan are able to do so as long as they have necessity, interest in business growth, and a plan for using the loan.

Number of microloan beneficiaries: 43
Number of clients having received a second or third loan: 18
Amount of money given total: $14,889
Number of rounds of loans: 8
Percent that pay back: 95%
Money donated to microloan program: $4,963+
Percent female recipients: 66%

Student Testimonials: Jessica Kroenert

Jessica Kroenert, a junior at the State University of New York at Geneseo, is studying International Relations and French. She traveled to El Sauce in the summer of 2013 for two months, during which she participated in both the Humanities II and Service Learning Programs. She is passionate about service and is hoping to make a career in development work, so her experience was especially important to her personal and professional growth. In reflecting on her experience, she writes:

Jessica, Cam, and Enrique preparing to give an interview.

It’s hard to say what first made me apply to study abroad in El Sauce. As an International Relations major, it is a requirement for me to study abroad, and since I’m on the Developing World track within my major, I guess I was drawn to Nicaragua as a “developing country.” I’m interested in working in development as a career, and something about Nicaragua appealed to me, not to mention I definitely needed some experience in the Spanish language. However, the expectations I held for my trip were completely flipped around when I arrived.

Going into a service learning experience, you expect it to be primarily about helping people out, and learning a little along the way; basically, you would be doing the giving and the community the receiving. However, the reality, for me at least, was the opposite. I can say without a doubt that I learned more from the people I worked with than I ever could have imagined, and while I certainly valued my service project, and feel it was worthwhile. The experience and knowledge I received from my experience while working in the Microloan program is beyond anything I could have ever imagined.

Jessica taking a picture of a microloan recipient and her family.

I was very enthusiastic to start working with Enrique, the Microloan Program coordinator, and Cam, another student from Geneseo, on writing biographies and taking photographs of the program’s current participants. I had a strong interest in Microloans and wanted to get a feel for how they work. I was able to learn so much from talking to the program’s participants, not just about Microloans, but about their lives, their culture, their aspirations, and disappointments.

I’ll never forget how, just on our first day interviewing, two of the three people we talked with began to cry when telling their stories. The way the majority of people were so willing to open up to us gringos and share their life’s hardships and victories, was inspirational. There was rarely, if ever, a day where I wasn't touched by someone’s story, and wanted to do everything I could to help that person succeed.

I had an incredible experience working in this program; I hope our project was valuable and that the hours Cam and I spent writing people’s stories and editing their photos eventually circles back and benefits the people we met. But I know for me, this was definitely a Service Learning experience with a tremendous emphasis on the learning aspect. What I took away from our 30+ conversations with Microloan participants far exceeds anything I could hope to give them in return.

Read Jessica and Cam's Microloan biographies here.

Milton's Trip to New York

Milton and Luzvelia perform a traditional Nicaraguan
dance in Geneseo.

My name is Milton Antonio Mejía López. I am a forest engineer and I’m 25 years old. I was born in El Sauce, in the department of León, Nicaragua. I am currently working on my uncle’s farm, assisting with technical and administrative jobs. I have been studying Enlgish for almost 2 years with Enlace Project and I’m in the second level, although almost finished with the level.

My primary reason for traveling to New York was to practice the knowledge that I acquired in English class. I also wanted to learn more about the culture of the United States and to share my own culture, as an exchange. I was very excited to visit one of the most prestigious public universities in New York and reconnect with my friends who are studying there. I had met them when they came to El Sauce through the Enlace Project study abroad programs. It was also exciting to see different sights around New York State.

I spent 12 days in New York. In New York City, I had the privilege of visiting Central Park, the Brooklyn Bridge, Yankee Stadium, Wall Street, and Main Street, as well as some others. I also visited the area where the twin towers were, and where there are now two large fountains. I also saw a tree in that area that had survived the attacks.

From left clockwise: Milton, Juan, Camilo, and Javier enjoying Yankee Stadium.

Next we moved to Waterville, the hometown of Enlace Project Director Kellan Morgan. There I met his family, for whom I’ll always be grateful. Here we played many sports like soccer, bowling, and kayaking. We also visited Saratoga, where I saw horse races. My friends and I bet 12 dollars on a horse, but we unfortunately lost. Lastly, we went to a waterpark, which is a beautiful place to enjoy a happy weekend with your family. Here, you shouldn’t be afraid of heights, and the games are really fun.

Finally, we visited Geneseo University, where Mr. Wes Kennison explained to us a bit of the culture and history of Geneseo. We also saw different places around the university and town. I was very excited to see my friends who live there.

Milton in Morgans True Value Hardware Store in Waterville, NY.

We then visited one of the 7 wonders of the world—Niagara Falls. This place is fantastic, and we were able to board a boat to see the falls more closely.

I also went to the home of the Lupisella family. It was very nice to have a DJ at the party. The Lupisellas have built two schools around El Sauce, in the community of Ocotal. That is admirable because, thanks to them, many children can go to school without having to travel long distances. We visited Rochester and Buffalo, and had a meeting with people who have helped working with the 4 Walls Project.

For me, I enjoyed myself everywhere, but especially New York City. This was because I was in one of the cities most visited by tourists, and I was one of them. I was in "the empire.” The hardest part, however, was not being able to understand what everyone was saying. I had to adjust to the weather and living conditions too. But these experiences helped me to improve in my English and I learned how to adjust.

Visiting the Big Tree Inn in Geneseo, NY.

The trip was an unforgettable experience, and I learned that in all the world there are very good people. Traveling can help to improve your personal life, too. I learned that you have to lose fear, like I did when I was nervous about speaking and when I was afraid of heights.

I would like to thank everyone for making this experience possible: Wes Kennison, Jessica Kroenert (who helped my apply for my visa), the Towsley family, the Morgan family, the Lupisella’s, Kris Dreessen, Enlace Project, and everyone else who had helped in any way.

--Written by Milton Antonio Mejía López

SUNY Geneseo Students Find a Second Home for Enlace Project on Campus

The student body of the State University of New York at Geneseo, Enlace Project’s biggest partner in Study Abroad programs, is about to get a whole new look into El Sauce. A student-led initiative is in the process of forming the Enlace Project Geneseo club, which hopes to serve as “an organized connection to Enlace Project for anyone in Geneseo who has an interest in the programs (that they offer).” Additionally, the group will run fundraisers and keep students who have participated in past programs  in contact with each other and with El Sauce.

Students from SUNY Geneseo working with Enlace Project members
to begin planning some club activities. 

Christopher Pike (known as Topher) is a Senior Business Administration and International Relations double major at Geneseo. Supported by the Frank Vafier Student Ambassadorship Grant, Topher decided to work with Enlace through a project he entitled “Sustainable Non-Profit Management in El Sauce, Nicaragua.” The goals of this project include learning about the operations of Enlace Project and creating “a stronger fundraising and information network between El Sauce and Geneseo.”

Topher originally became involved with Enlace Project through Geneseo’s Humanities II program over the summer of 2012. He explains that he was very impressed with the work that Enlace Project was doing, and believed that the Student Ambassadorship would be a great opportunity for him to apply his skills to Enlace Project’s mission.

During Geneseo’s Humanities II program in the summer of 2013, Topher once again traveled to El Sauce, this time with the mission of learning about Enlace Project’s work and collecting photographs and videos to use in his project. He accompanied Kellan to school openings, worked with Enrique Corrales to learn about the microloan program, and sat in on the weekly staff meetings. Now that he has returned to Geneseo, he hopes to start the Enlace project Geneseo club.

Topher Pike during his first visit to Nicaragua.

The club, which is currently seeking recognition by the college, has about twenty students involved, and hopes to expand membership to include Geneseo community members. Most of the current members have previously traveled to El Sauce, and are hoping to remain in touch with the community. On October 18^th, from 5-8pm on the College Union Patio in Geneseo, the group will be hosting a benefit concert and selling baskets from the Fuente de Pino women’s cooperative.

Topher is also working on compiling an informational video for Enlace project and create advertising materials for future trips.

--Written by Sean Conner, Enlace Project Intern

“Enlace Project not only made my time in Nicaragua extremely enjoyable, they helped me discover a passion for international development.”

-Topher Pike

Meet Conrad Wright: Bringing a Unique Blend of Business and Agriculture to El Sauce

Conrad Wright is one of Enlace Project's newest staff members, joining the team from Colorado, through Enlace Project's connection with Peace Corps. Prior to his enrollment in the Peace Corps, Conrad had traveled to South-Eastern Asia and Africa to volunteer and work on various projects, including starting a non-governmental organization that operates in Uganda and Tanzania. He has a bachelor's degree in International Business Administration from Fort Lewis College. Conrad's service in El Sauce began in May 2013.

What do you do here in El Sauce as a Peace Corps Volunteer?

Well, I am a small business development volunteer and  I have two primary jobs. One of my jobs is working in local schools helping teachers with a small business class. The business course is part of a new nationwide initiative aimed at spurring long-term economic growth by giving students the tools to start their own business. My second job is with Enlace Project. I am working here sort of as an auxiliary support person filling in wherever I’m needed but I do have the freedom to start my own projects too.

Early biochar experiments.

What is some of the independent work that you are doing as a part of your service?

I am working on a cross-sectoral project with the Manuel López coffee cooperative. I met the group of farmers through Enlace Project and had the opportunity to tour some of their farms. They had mentioned to me that their crop yield is lower than average output. I offered to share with them what I know about organic land management, because of my interest in permaculture and my experience working on organic farms back home. So, for example I am planning demonstrations on biochar, bio-insecticide production, large-scale compost management and field application, compost tea production and pruning techniques.

Can you explain in more detail about the process of producing biochar and bio-insecticide?

The procedure of producing biochar is pretty simple. It is an anaerobic chemical reaction known as pyrolysis. Essentially what this means is that in order to create biochar you have to use an oxygen-free zone so the bio-material you are using carbonizes. The great thing is that you can use corn stalks, used corn cobs and waste wood, and other similar materials that are abundant on farms. 

The reason why biochar is so effective as a soil amendment is that it increases surface area in the soil for microbes, bacteria and fungi to live. So, by adding biochar to the soil you dramatically increase soil life which is largely reasonable for converting organic matter in the soil into nutrients for the plants. There are a variety of other benefits like GHG sequestration and increased water retention, to name a few.

In the process of pyrolysis you get other useful byproducts such as synthetic gas and what has been termed “bio-petroleum.”  So, I built a device known as a “modified biocrude gasifier” to both produce biochar and to capture these other useful products. The biocrude can be processed into both a fuel that can be used in small engines like a generator and also insecticides that can be applied to the plants.

Conrad's "modified biocrude gasifier" during its first complete test in mid-September.

How does this help the farmers?

Well, the farmers will be able to use the biochar in field application to improve crop yield. Then they can use a dilute of the biocrude to fend off the pests that may be feeding on the coffee trees. Or they can process the biocrude into a bio-fuel to run their generator up there to produce valuable energy. 

How much did it cost to make this biocrude gasifier?

I spent about $120 USD to pay for material, labor and transport for the gasifier, but you could do it for much cheaper. You could build one for next to nothing if you could source your materials from leftover construction projects or the garbage dump. But for this project, I bought almost all of the material new.

Can you explain how this project fits into the idea of sustainability?

Resulting biochar material from one of the initial tests.

In terms of the farmers, the aspect of sustainability relates in a multifunctional way to their whole system of production and, by extension, their way of life. First of all they are closing the system loop by converting a waste resource into valuable products. It also allows them to source their inputs for crop production locally. In a financial sense, the project could potentially save them money in the long run or generate money (from cost-reduction) depending on how you look at it from not having to buy organic insecticide and organic fertilizers. Additionally, it would save lost income from a pest infestation or if they are really ambitious they could use the project as an income generating activity. For a more global sense the project fits sustainability criteria by GHG sequestration and a reduced demand on petroleum products.

What’s the next step?

I have to put together a series of participative lectures and demonstrations to facilitate the “knowledge transfer” of this whole process and show them how all this stuff works and what to do with it. So, I am hoping that sometime in December I can have them down here at the office for a day to show them what I have been up to.      

Keep on the look-out for updates on Conrad's work!