NICA Fund becomes the Capital for Communities Fund
WCCN is pleased to announce the name change of its microfinance project from the Nicaraguan Credit Alternatives Fund (NICA Fund) to the Capital for Communities Fund.
The new name signifies WCCN’s commitment to supporting organizations that promote community-based economic development. As WCCN’s outreach now extends outside Nicaragua, the fund also is reaching micro-entrepreneurs and small farmers in El Salvador, Guatemala, Honduras and Ecuador. These microcredit borrowers face common challenges related to poverty and inequality, and they often are excluded from the traditional financial sector. WCCN appreciates its members’ steadfast commitment as the fund gradually has formed new partnerships to meet their needs.
Concurrent with the name change, WCCN updated investor loan documentation to reflect the fund’s work in countries outside Nicaragua. This complex task required revisions to the fund prospectus, standard loan agreements and promissory notes, as well as coordination with state regulators to ensure seamless compliance with securities laws. Please contact the WCCN office if you are interested in learning more about these changes.
The quarterly fund report, which appears in each newsletter, also is updated to depict WCCN’s expansion in microfinance work. Please see the previous page for the latest information on the Capital for Communities Fund portfolio, growth and investor composition.
This report also illustrates how WCCN recently reorganized economic-development projects formerly known as Program-Related Investments (PRIs). These special projects were conducted apart from the Capital for Communities Fund activities with WCCN’s institutional capital rather than investor funds. During 2009, all these project loans graduated to the Capital for Communities Fund portfolio, including support for the fair-trade coffee cooperative, CECOCAFEN, and two credit and savings cooperatives, Mano a Mano and Humberto Aguilar. These successful partnerships continue to enrich the fund’s social impact. Going forward, special projects such as these will be part of a new division of WCCN known as Community Needs, LLC. In 2010, this division will initiate loans in local currency for certain partners particularly vulnerable to foreign exchange risk. Such risks may affect the costs of credit to microcredit borrowers and reduce the quality of their financial services. Grassroots Connections will report progress in this effort as we reach milestones.
On behalf of women, small farmers and entrepreneurs throughout Latin America, I thank you for your continued support of WCCN’s micro finance work. Your participation is essential to creating opportunities for all Latin Americans.
By Emily Allred
Loan Fund Manager