– FUNCTIONING OF LOANS –

 

The Council determines the conditions of each loan according to the project. These terms and conditions must include, among others, the following statements:

 

A)  Reimbursement: 

 

• The terms of the loan can not exceed 5 years after the implementation phase of the project provided for in the business plan.

• The implantation phase cannot exceed 12 months.

B)  A reminder of microloans:

 

In the case of sole proprietorships and in the case of community type businesses where the beneficiary no longer meets the eligibility criteria, the loan will be recalled and/or the Foundation may require the transfer of the asset to another eligible beneficiary.

 

C) Interest and voluntary contribution:

 

• The interest rate of the loan will not exceed the base rate of the country's central bank + 3%.

• Depending on the profitability of the company and its financial capacity, the borrowers and their business will be asked to voluntarily pay, in addition to repayment of the loan and its interest, in the years following the end of the loan, up to a maximum of 50% of the loan amount to the Foundation. Borrowers may require the Foundation to reserve this voluntary contribution to fund another business venture in their community according to the criteria of the Foundation.

 

D) Loan guarantee and moral guarantee of the borrowers:

 

• Except in the case of malice, fraud or gross negligence, no personal obligation to repay the loan will be required of the borrower if the business can not financially meet the obligations related to the loan;

• The borrower will have to commit on a moral bond basis, that her company will repay the loan out of the funds generated by the operations;

• A legal guarantee on the assets of the company could be required.

 

– ELIGIBILITY CRITERIAS – 

 

A) The beneficiaries:

 

The criteria for determining eligible recipients are:

 

i)  Sex:

• Women

 

ii) Family conditions:

• Have one or more children to support;

• Be single parent or have a spouse who is unfit to earn enough family income to support the children.

 

iii) Criteria of poverty:

• Total family income below the Canadian LICO (or its equivalent elsewhere in the world);

• Inadequate family income to provide both minimum family necessities and adequate education for children to break the cycle of family poverty.

 

iv) Other criterias:

• The recipient and her spouse (if present) do not have a problem with alcohol, drugs or gambling;

• The recipient and her spouse (if present) do not have a criminal record for serious crimes;

• The beneficiary (s) demonstrate (s) ability to carry out the business project;

• Support of the family and the community in the realization of the business project.

 

B) The projects: 

 

The criteria for determining eligible projects are:

 

• The project will help support and improve the living conditions of the family;

• The project demonstrates its ability to repay the loan within a reasonable time;

• The project generates funds covering fixed costs from the second year of implementation;

• The targeted activities do not violate any law of the country where the business is located;

• Beneficiaries and their companies undertake to have their company pay all taxes in accordance with the applicable legislation and in force in the country of residence;

• The cases in question are such as not to encourage or support in any way violence, prejudice or the racial exclusion or any other form of discrimination, as well as any promotion or affiliation to a religious institution;

• All projects must be approved by the Foundation's Board of Directors.