Microloans Work, and Here’s How We Know

New testimonies from Nicaragua reaffirms what I’ve seen time and again: microloans change lives!

Or as one grateful beneficiary put it, “Miracles do exist!”

A loan of a couple hundred dollars might not seem like enough to start a small business, but –combined with training and accountability – it can equip a desperately poor family to reach a higher economic level. I’m not talking about having a business to rival the Fortune 500. I’m talking about being able to feed your family every day, put your kids through school and keep a sturdy roof over their heads.

That is the goal for most families, and a microloan can provide exactly what is needed.

The microloan program helped Estela Mayorga open her own small grocery store!

For example, consider the testimony of Estela Mayorga, a wife and mother-of-two who lives in the village of San Cayetano.

Estela used to keep credit lines with her local grocery stores so she could afford to buy food for her family. After she joined the microcredit program of our ministry partner Rainbow Network, she was able to open her own small store and turn her situation around.

“Today, these grocery stores are no longer there,” Estela wrote, “and now it’s up to me to support families of scarce resources, providing them with small credits. It’s greatly satisfying to know that I can do something for families that are going through situations today that my family went through in the past. For me, to serve people in the community is a real pleasure.”

Estela’s new family business has reaped many tangible benefits, but one of these stands above the rest. She saved enough money to move out of her makeshift wooden shack and into a durable concrete house. And because this wasn’t a handout, but the result of her own hard work and perseverance, it has all the more meaning.  

Still, she knows she couldn’t have done this alone.

“Without the support of Rainbow Network, it would not have been possible to undertake this family project. I ask that Rainbow Network would continue being with us as long as possible, because it has been a helping hand that our God has sent us,” she said.

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