The Vida Fund is a revolving loan fund that receives investments and donations. It, in turn, makes low interest loans to Nicaraguan cooperatives and small businesses.
Nicaraguan banks loan at a rate of 10% for their very best and safest customers… the rates increase dramatically for riskier customers and that does not include all the fees and miscellaneous costs that the banks add on top of the rate of interest. The Vida Fund loans at 6%, no fees and no miscellaneous costs. More importantly, Nicaraguan banks will not lend money to the people that The Vida Fund does. They are considered too risky
Vida Fund investors participate in this shared risk investment with the poor who invest their time, labor, energy, and creativity into getting their farms and businesses started and expanded.
This partnership allows people with more secure finances to share in the risk of investing with the poor, in order to give them a fighting chance.
The poor risk all when they go out on a limb in their enterprises and they need investors to be willing to invest in their risk. In other words, they need investors willing to wait for a return in exchange for giving the poor a chance and a safety net.
COPROEXNIC, the organic agriculture cooperative, is the largest receiver of Vida Fund loans. It, in turn, loans to thousands of farmers for planting and harvesting. When farmers share the risk with the CDCA through the Vida Fund, this keeps farmers from losing their farms if there is a drought or flooding.
COROEXNIC also borrows to run the sesame processing plant leased by COPROEXNIC, as well as for organic peanut processing, shipping, or other fees that might be incurred in the process of getting processed product to the buyers. If the Vida Fund was not available as a cushion, then COPROEXNIC would have closed long ago, causing many farmers to lose their land.
Interested in helping? As the Vida Fund grows, the CDCA can help more Nicaraguan businesses. If you have funds to invest, please consider an impact investment with the Vida Fund. You will not only receive a return on your investment, but you will also know your money is doing good. You can make an investment, or a donation.
Investments receive up to 5% interest and may be in U.S. dollars or €uros. To keep the Vida Fund viable, the CDCA needs loans to be for a minimum period of five years and a minimum investment of $5,000, so that they can be used most effectively. Donations may be of any size. If donating to the Vida Fund online, clearly designate it as such.
For investment information or a copy of the Vida Fund Prospectus, email: firstname.lastname@example.org.