“Tailor-made" Financing Program for Sustainable Development

Published on February 2, 2018

Program designed with very special characteristics to give a chance to those people who have little possibility of obtaining financial support within traditional financing systems. The program is addressed to productive small and medium-sized businesses, -both individuals or associations, devoted to sustainable, and mainly innovative, economic activities. Those activities should contribute to better quality of life, environmental protection, and gender equity.

This financing program was established in 2006 with the objective of facilitating access to credit for people who, for whatever reason, have little possibility of financial support within traditional financing systems. It is called "Credito a la Medida or Tailor-made Financing" because some conditions are adjust to each case, for example guarantee, terms and payment schemes. On the other hand, the program focuses on projects that are different from the traditional and generate a positive impact with environmental and social practices. For this reason, it´s focus on innovative products or services with a consolidated value proposition and promote productive chain, social management and equal gender participation. The credits must be framed in one of this thematic areas: Agrosilvopastoral Activities, Environmental Management and Clean Technologies, Sustainable Energy and Energy Efficiency, Sustainable Tourism, Gender Equity, Productive Linkages or Public or Private Services, Cultural Value, Climate Change. The Tailor-Made Financing Program involves the development of activities focused on: 1. Promotion and dissemination of the program 2. Personal advice to each project by the advisory team 3. Strengthening initiatives through training for clients and stakeholders 4. Technical and financial support through the project 5. Encourage of productive chains between customers 6. Strategic alliances with other organizations in order to grant additional facilities to the projects Approximately US $16 million have been placed in financing small and medium credits since the program began in 2006. - With the total investment, more than 563 projects have been financed, mainly from the agricultural and tourism sectors. - 83% of the projects are carried out in places with lower social development indexes. - 87% of the projects financed were developed by the family unit. - 35% of the total financed projects corresponded to the development of new business ideas. - 38% of projects are led by women. Fundecooperación expects to continue financing many credit projects to help develop new productive businesses in the country. Any natural or legal person wishing to obtain financing can consult through the program and evaluate the possibility.