KIVA-Loan+Jusitication

KIVA – Loan Justification Your Name: Chantelle Chan

Potential Recipient URL: [] Name: Souad Country: Lebanon Type of Loan: Food, Production and Sales

Criteria

1. Risk

Borrower (Credit history/Personal character): Souad is 55 years old and widowed. She is living and supporting her kids. Since 2000, she has been finding work as a housekeeper. However, her income was barely enough to eek out a living for herself and her family, she has decided to borrow $1,200 to start her own business of producing traditional Lebanese homemade food. Souad is clearly a resourceful and motivated woman, she has a high chance of success in this venture because she needs to succeed for the sake of her children, and without a husband to support them, she must rise to the occasion.

Field Partner (Risk Rating, Delinquency Rate, Default Rate):

The field partner is Ameen, and has a four star risk rating. It's delinquency rate is 4.2%, and the default rate is 0%. Ameen has been with KIVA for over 3 years, and has already gathered 2271 KIVA entrepreneurs. Ameen is a decent and trustworthy field partner to place one's funds with.

Country Risk (Economic, Political, Natural Disaster)

Although Lebanon is in economic and political turmoil, this woman should not be turned down by us for a loan. The purpose of this project is to fund those who are in need- wouldn't someone such as Souad need funding most?

2. Business Plan - [|Small Business Start Ups]

Potential for success: High, seeing that Souad's small business will be in the food industry. In 3rd world countries, in theory, things are simpler. People need food, and people need clothes. Her food that she will be selling in traditional Lebanese food, it is highly unlikely that it will be rejected by the general public.

Potential for sustainability: This plan has a good chance of becoming sustainable, Souad needs to buy equipment for her business venture, which should be a one time thing, unless she chooses to expand yet again. Once she gets rolling, she will be able to make back the loan in no time.

Potential for regional economic benefit: When Souad succeeds, her children will benifit, and her children are the future members of society of that region. Souad's customer's will also benifit from the good food, and if she expands to a certain point, she will hire staff, which will in turn get paid, which will be spent on other things, which will boost the economy.

3. Borrower

Perceived level of need: Souad desprately needs this loan. Without it, she will not be able to properly support her children, and as she is also a widow, it is several people living on just one income. Please help this woman, she is all alone and needs some support to get by.

Financial responsibilities/commitments of individual: The financial responsibilities of this individual are that of any- she must pay for food, clothing and shelter, plus extra things.

4. Summary

In summary of Souad, I believe that she is a bright woman who has realized as time passes by, she will not be able to properly support her children on a housekeeping job, she needed to do something to boost their income. As she has decided to start a business selling Lebanese food, she will need some seed money to purchase the equipment. Souad can be trusted to lend money to because not only is she in extreme need, the sake of her children's well being rely on this business of her's going well. A maternal instinct will urge Souad to do well, and work hard. She is an bright individual, who is trying to do the best she can.