Money Talks

Information on a nonprofit that lends money to Latin American small businesses and is expanding to the U.S.

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NOVEMBER 1990

Business owners looking to give grass-roots entrepreneurship a boost can support Accion International, a nonprofit organization that lends money to Latin American small businesses and is expanding its operations into the United States. Through Accion's Bridge Fund, investors deposit $10,000 in an 18-month certificate of deposit. Five percent of the interest goes to the investor. Anything else the CD earns pays for Accion's administrative costs.

The $2-million Bridge Fund backs letters of credit for loans made by local Accion affiliates. The loans have been spread out among 40,000 tailors, fruit merchants, mechanics, and others, who received an average of $227 each. Last year the default rate was only 2%.

For more information, write Accion International, 130 Prospect St., Cambridge MA 02139, or call (617) 492-4930.