In 2004, an estimated 35%

of Cambodians lived below

the national poverty line

of 45 cents per day.

- World Bank

The number of loans we are able to distribute depends on the amount of donations we receive. By contributing to the micro-finance fund you are provding an individual or family with the means to provide for themselves.

Repayments are made in weekly installments, and a JWOC representative visits each persons home or business to collect payments. By doing this, each business owner can continue to manage their business without having to leave in order to make a payment.

Borrowers are eligible for subsequent loans depending upon repayment of the first loan. Many of our borrowers are already on their second or third loans. However, in order to get a new loan after paying off the old one, a borrower must show how another loan will benefit his or her business. As money is collected each week, it is saved to be re-used for future loans.

1. Applications are handed out to people with business ideas or a current business.

2. A rating of 1 to 5 is assigned to each application. The highest rated ideas are collected and a personal interview is carried out for each.

3. After the interview JWOC chooses a pre-determined number of applicants based on their business plan and personal interview.

4. Each application is translated into English and kept on file.

5. JWOC gives the loan to each borrower and they sign a contract indicating how much they have borrowed, how much they must repay each week, and their thumbprint to agree to the “contract”.

6. The money will be collected every week and recorded on their “contract” and written down in our records.

7. If the individual repays in full, they will be eligible to borrow higher amounts in the future.

The initial interest rate for a loan is 2% per month. While high by Western banking standards, this rate is far below the 15-20% monthly interest rates most small business owners currently pay for their loans.

From the administrative and banking perspective, repayment of loans is the main indicator of success. With continuing repayments, JWOC can trust the borrowers are able to borrow, save and repay the loan. With repayment JWOC will have that money to reuse for future loans.

Another element of success is evaluating how each loan impacts the lives of individuals and their families. With the help of volunteers, JWOC makes periodic on-site evaluations to assess the benefits of the loans. These indicators include improvements in education of children, health conditions, and living conditions.