Most entrepreneurs starting small business in the Philippines have difficulty acquiring capitaand must rely on informa lenders who charge up to 20% per month for loans.

“Interest was too high and we couldn’t afford that option,” says Mrs. de la Peña, who runs the store while Albert teaches at a nearby school. She appreciates the USAID program because it “allowed us to purchase equipment up front so that we could expand our sales while repaying the loan at reasonable interest rates.” 

After just six months of diligent repayment on their first loan, the de la Peñas were able to increase the amount they initially borrowed three-fold. Prompt payment is required under the program, which strictly enforces a zero tolerance policy on delinquent loans.

The Rural Bank of Cantilan also encourages all borrowers of loans to open and maintain a savings account. Since their initial loan one year ago, Mr. and Mrs. de la Peña have saved almost 15,000 pesos. With four young children, they hope to continue saving for their family’s and children’s future.

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