Welcome to Fresh Start Microloans
Fresh Start Microloans enable individuals to establish a means to provide for themselves and their families and to serve their communities. The businesses are theirs, not ours; the business plans are theirs not ours; the enterprises are appropriate to the local economy, not the result of decisions made by those in another context, they are accountable primarily to their peers, not to us. Our involvement is limited to prayer and the initial seed capital. We long to see each business established on its own; we have no desire to foster dependency.
Equity, not Debt
The challenges of so-called Third World debt have been well-documented. Although our microloans are technically debt, we consider them more helpfully regarded as equity. The loans are interest-free, the funds are unsecured against any of the assets of the business or person, and there are no restrictive covenants on its operations. While we regard the repayment of the loans as an important part of maintaining the dignity of our partners and a way to fund other businesses, our priority is to see the businesses established.
The businesses belong to our partners. We want them to be profitable not just so that our partners can provide for themselves but so that they can reinvest and build on the foundations they are laying. Consequently, in contrast to the cycle of dependency so often associated with “aid” and “development”, Fresh Start Microloans foster dignity.
Fresh Start Microloans is a small step forward; the number of potential partners is unlimited. As little as $200 makes all the difference.
While you're here
On this site you’ll see the projects that the donations of individuals and our partners have made possible. You’ll also see how you can help us expand the scope of projects by direct donations and the purchase of merchandise with the Fresh Start logo. Fresh Start Microloans pays no one involved with any part of the microloan process. We rely on volunteers for every step. Go to the Contacts page if you have any question that are not addressed on this site.
What are microloans?
Microloans are the extension to individuals of small loans to be used for income-generating activities that will improve the borrowers', their families and in turn their communities’ living standards. Usually these are business that the borrower has started and needs the capital to expand the business, or the borrower has a plan to start a business and has no capital to implement it.
The loans, which may be as little as $200 for the borrowers in some developing countries, typically are for a short term, are not secured by collateral, and do require repayment. The borrowers would not qualify for a conventional bank loan.
Peer support groups consisting of other borrowers are often a component of microloan programs. This helps ensure that the borrowers repay the loans. Successful microloan programs typically also focus on improving the education and health care of their borrowers. Also, the typical default rates on microloans loans run about 4%, which is less than half the rate of subprime loans made by U.S. lenders.
Although microloan programs were originally, and are still largely operated by nonprofit organizations, some for-profit companies also focus on microcredit lending. The term microloans, although often used as a synonym for microcredit or microfinance, is especially used to describe commercial microlending and also may include other financial services offered on a small scale, such as bank accounts that do not require minimum balances.