Nicaraguan Credit Alternatives Fund (NICA Fund)

The Nicaraguan Credit Alternatives Fund (NICA Fund) addresses a root cause of poverty and social injustice by providing financing for economic activities of low-income Nicaraguans with little access to commercial credit.

The NICA Fund operates by channeling funds from socially responsible North American investors to Nicaraguan nongovernmental organizations (partner agencies) that specialize in providing credit to marginalized sectors. These are self-sustaining, non-profit microfinance institutions with years of experience lending to the poor.

 

Like the roots of a coffee plant, individual investors send resources to the NICA Fund. The NICA Fund works as the trunk of the plant, channeling resources from its roots, the investors, to its fruit, the productive enterprises of low-income borrowers. The NICA Fund partners with a variety of Nicaraguan organizations which serve as branches for administering microloans to thousands of individual Nicaraguans.

Who Benefits?

An investment in the NICA Fund serves many purposes. First, it responds to the very high demand for credit in Nicaragua. Also, it offers loans to low-income borrowers who cannot obtain credit from conventional sources. Finally, it enables you to become an active partner in the process of community-based economic development in Nicaragua.

Loans to farmers, cooperatives and small businesses benefit whole communities as funds revolve at the local level. A farmer, cooperative or small business that receives a loan buys goods and services and employs other people, furthering the community benefits of the loan.

Thus even a small investment can have a tremendous impact. Your loan can generate employment and allow Nicaraguans to feed their families and contribute to their communities.

Your investment makes you a partner and participant in international economic development. The people of Nicaragua are not asking for charity - just the opportunity to produce and earn a fair wage.

For More Information

• Profiles of individual borrowers
• Frequently asked questions
• Download our NICA Fund Brochure (PDF format)
• What others are saying about the NICA Fund
  • SocialFunds.com
  • Amy Domini of Domini Social Investments
• Join an economic issues study tour of Nicaragua. WCCN sponsored a tour each January. Participants visit Nicaragua for ten days and learn about its history, politics, culture and current social issues.
• Download our bibliography on alternative credit in Nicaragua (MS Word format) last updated January 18, 2005
• Identifying Successful Participation in Women's Lending Groups in Nicaragua's Agricultural Frontier by Francisco Barquero (PDF Format)