Women Take First Steps Toward Economic Security with Community Banks

Women in rural Nicaraguan communities have many skills, including sewing, cooking and more. With CEPAD’s community bank program, they learn to turn those skills into businesses so they can make money for their families.

For many this will be the first time they have earned money for their families and represents a transformational shift in their self-esteem.

CEPAD is working with 35 women from seven villages near Matagalpa, to set up a new community bank in each village. CEPAD funds the bank, and the women run it to ensure accountability and a productive use of the funds. The goal is for every member of the bank to start a small business, such as selling food, tailoring clothes, or setting up a small store to sell household goods.

Each woman starts with a small loan, between $20 and $100, and pays it back over four months. With time, the size of the loans will increase to match the capacity of her business. Loans have a 3 percent interest rate and also have a built in savings program — in each cycle, CEPAD puts 3 percent of the loan amount in a savings account that the woman can withdraw later. For many women, it will be their first time learning to save.

“It’s nice to have money, but it’s better to multiply it,” said Roberto Castillo, the CEPAD staff member who ran the training. “I know you may be scared of having this new responsibility, but we’re going to make sure you’re ready to start your business and succeed.”

At the first training, women learned how the loans would work, and each group named their bank. They chose names like “New Promise Bank” and “Enterprising Women’s Bank.” After two more trainings, they will receive their first round of funds so they can start their new businesses.

At the beginning of the training some of the women did have some concerns about the project, like whether they would be able to pay the loans and count on their fellow women to do the same. However, after the training, the room surged with confidence and optimism.

“I have been making and selling nacatamales [a traditional Nicaraguan food] for two years, and it has helped me to earn a little money,” said Gloria Maria Tercer of the village Ocote Sur. “However, with some money to invest, I know I can do much better work and maybe start making other things to sell too. I have a sewing machine, and if I could repair it I could also make money by sewing clothes.”

Your support of CEPAD is going to make a big difference for 35 women in Matagalpa. Thank you for all the ways you help women like Gloria.