The Huancayo-based non-profit, Blue Sparrow, traveled to San Martin de Pangoa this weekend to speak about their experiences distributing microloans in El Tambo and Huari, other localaties in Peru. They shared the training structure and handouts they use, interviewed women selling their products in the market, tasted some great coffee, and met with cooperative staff in order to train the trainer, Yenifer Sobrado. She is interested in formalizing the microloan experience for the members of CAC Pangoa and intends to tailor a similar type of training for the coffee program as well as for the revolving loan fund for women.
Women of CODEMU at the Saturday market outside CAC Pangoa’s offices
That Blue Sparrow provided a training to CAC Pangoa rather than funds for loans is two-fold. One, Blue Sparrow charges interests on their loans, and thus their funding is not a match for the cooperative. CAC Pangoa does charge interest on some loans, though it remains at 1% for symbolic purposes, to motiviate partipants. A non-profit creating a robust microloan fund typically must charge a higher interest rate than 1% to remain viable, making such non-profits difficult for coffee farmers or coffee cooperatives to partner with. That doesn’t mean their trainings or business development support teams will not be useful to farmers who’ve taken out loans at 0% or 1%. Payback is tough, and Yenifer hopes to provide a little more attention to the members who are struggling.
Students from Wharton with Albino Nuñez
Meanwhile, Mano, a coffee shop in Hong Kong, will be raising money for the women of CODEMU to add to their loan fund. Money from their fundraiser will go directly to this group so they may continue to take out loans, attend the Saturday markets, and keep growing lots of women’s coffee. All thanks to Courtney Dettrich, a consultant for Mano with a passion for coffee and development. Her funds will be raised alongside the funds raised this Thursday at Pete’s Candy Store in Brooklyn, where Peck, Lee Godleski, and Isaac Gillespie will sing to raise loan money for CODEMU. Updates to follow!