Breakfast Rotary Charitable Foundation
(a 501c3 entity)
Barrington Breakfast Rotary Club
Rotary Contact: Narayan Murarka, Ph: 847-836-0494
Updated 1/2/2011
Rotary Micro-Loan Program
“Empowerment – Not Dependency”
The Purpose:
The objective of this program is to provide opportunity to deserving low and moderate income people to start, sustain, or expand an income generating business venture by offering seed money in the form of a loan ---often called microloans. The loan itself is not meant for personal consumption such as food, rent, medical expenses, education, etc. It is necessary for the recipients of such loans to have other sources of income to sustain themselves for day to day living. With this loan, it is expected that families will be able to supplement their income. This program is not meant to be a grant but a loan with full expectations for pay back of the principal with modest interest. The micro-loan program empowers the deserving to become economically self-reliant. Our motivation is to provide “empowerment – not dependency” to individuals who have difficulty getting credit through the normal banking system.
Benefits:
Most non-profit and service organizations, including Rotary, address the needs of individuals in a holistic fashion, treating body, mind and spirit. Health and wellness begin with an individual's sense of well-being and security. Through this important program, we seek to deliver in some small measure on these basic human requirements. Few aspects of life are more essential than a livelihood that enables people to provide for themselves and their families.
This project is about “helping those who are trying to help themselves.” In other words, the program addresses and responds to the entrepreneurial spirit of individuals needing a helping hand. Our primary focus will be to attract only those people who are motivated, focused, and willing to put in hard work and are seeking opportunities to uplift their family’s life.
Micro-loan is also a means for self-empowerment. It enables the poor, especially women, to become economic agents of change. Engagement in an income generating business will serve as a role model for others in the community.
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Operational Guidelines:
The loans, with a maximum amount of $5,000, are granted with few of the hurdles required at traditional banking institutions and have a modest interest rate of prime plus two percent.
A MicroLoan recipient must be an American Citizen or Green Card Holder and live or have business in the greater Barrington area (zip code 60010) or its adjoining zip codes around 60010 to include such communities as Carpentersville, Dundee Township, Lake Zurich, Hoffman Estates, Palatine, Schaumburg and others.
All Applicants will undergo a “credit” and “background” check.
The primary factor affecting the approval of the loan will be the Applicant’s ability to repay the loan based on the viability of the proposed venture. This will depend on gross revenue, either actual or projected, profit margin and repayment schedule from the business venture. Other sources of income will also be considered to assess the Applicant’s ability to repay the loan.
Sponsorship:
A service club or a business or an individual within our community will serve as an official “Sponsor” for an Applicant. The Sponsor should be a person of good standing within the community. The Sponsor is expected to know the individual Applicant and his/her family over a period of time. The Sponsor is expected to vouch for the honesty, integrity and character of the Applicant. The Sponsor will not be involved in handling any money nor will he/she be co-signing the loan.
The Structure:
The Barrington Breakfast Rotary Club will administer this program in its entirety. A Committee has been set up to review the application: There are three basic factors that need critical review:
- Is the Applicant worthy of receiving the loan?
- Does the business venture have a chance to succeed?
- Will the loan be repaid?
The committee members will interview the Applicant, make a site visit, and review credit/background check results, etc. The committee will deliberate and make the final decision. Committee’s decision is Final.
Process-The following information will be requested from the Sponsor/Applicant.
1. Personal Financial Statement – Provide personal data of the Applicant and spouse including name, address, phone, social security number, employment info, etc. together with financial information. (Form will be provided to Sponsor/Applicant)
2. Application Form – Applicant and the Sponsor provide the basic information.
3. Business Proposal – An outline of the business proposal, dollar amount requested, the way the loan will be used, some projection of income and expenses, and repayment schedule. Members of the Micro-Loan Committee will assist the Applicant to develop the business proposal.
Our goal is to make the process as simple as possible. We recognize that a prospective Client may be discouraged when confronted with too much paperwork. We will work hand in hand with the Sponsor/Applicant to ease such a concern.
Partnerships:
Barrington Breakfast Rotary Club is working in cooperation with these area Rotary clubs to promote the MicroLoan program: Algonquin, Barrington (Noon), Carpentersville Morning, Cary Grove, Dundee Township, Lake in the Hills, Lake Zurich, Palatine, Schaumburg AM, Schaumburg-Hoffman Estates, and Wauconda.
Designated Mentor:
Once the loan is granted, the client will be assigned Rotary members to serve as Mentors. The Mentors will frequently talk to the client, assess the Client’s progress, and offer advice or support as appropriate. The Mentors will also see that the Client is following the payment schedule.
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Rotary ….. “Doing good in the world while having fun, fellowship and friendship”
“Rotary is a family of volunteers actively participating in meaningful community service projects while having fun, fellowship, and making lifelong friends with professional people from all walks of life worldwide.”
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Service Above Self