Impact Capital program has been moving forward with expanding financial access for social entrepreneurs. As part of an Argidius Foundation grant, we have been developing and promoting the Demand Dividend vehicle.
Recently, we have been working closely with a group in Nicaragua: Enclude, Agora Partnerships, and a local bank, BAC Nicaragua. Led by Enclude, they have developed a variant of the Demand Dividend. The bank, in conjunction with impact investors, will form a trust to issue loans to local enterprises based on the Demand Dividend structure.
Access to bank lending for small and growing businesses in many Central American countries is difficult, since extensive collateral is required. The BAC program will lend based primarily on cash flow criteria. Access to capital is doubly difficult for women, and the trust will focus on female-led or owned businesses.
Development of the BAC program is underway; the group is currently writing the legal documents for the trust.
We are extremely excited about the potential for the program to expand financial inclusion, not only in Nicaragua, but in additional countries and impact sectors.