Empowering People
& Revitalizing the Community

LAEDA Closes on $20,000 in Microloans to EDTP Graduates

Posted on 8/13/2013 by Ray Lamboy in LAEDA News Financing Your Small Business
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Camden, NJ – The Latin American Economic Development Association, Inc. (LAEDA) successfully closed $20k in microloans to graduates of its Entrepreneurial Development Training Program through its new micro-lending program EDTP ROSCA.

Through resources provided to LAEDA through the Federal Department of Health & Human Services – Job Opportunities for Low Income Individuals (JOLI) Program, LAEDA was able to offer small loans exclusively to graduates of EDTP.
 
The EDTP ROSCA or Rotating Savings & Credit Association is a formal version of an informal solution to accessing capital – small lending groups.  Typical to all cultures around the world and in the United States, these groups are formed; in small villages, among immigrant groups or within a particular part of a city, to allow individuals who otherwise would not have access to loans to access capital to invest in their businesses.  Through a partnership with FINANTA out of Philadelphia, LAEDA is able to offer this program to its graduates.
 
“After the 2008 near collapse of the economy, accessing capital became very difficult,” said Raymond L. Lamboy, President & CEO of LAEDA. “The graduates of our program are already starting from a disadvantage when it comes to accessing capital, combine this with the current conditions and it’s become impossible for them to access the capital they need to start their businesses. We needed a solution to get them on their way to “bankability”.”
 
Beyond accessing capital, the EDTP ROSCA program solves the overarching challenge of the “bankability” of individuals pursuing capital to start or expand a business.  Participants meet with a credit counselor and develop a Credit Building Action Plan to guide their efforts to repair or improve their credit.  LAEDA provides additional advanced training around Marketing and Salesmanship, Quickbooks & Accounting and other topics to further their training.  LAEDA reports their monthly payments to the credit bureaus, which ensures they receive credit for their good loan performance. 
 
Each EDTP ROSCA Group runs for one year.  Individuals who successfully complete one cycle are eligible to move up to a larger loan amount and a new cycle.  It is expected that a typical participant who completes three cycles will be ready for a traditional loan from a CDFI or bank.
 
“We are excited about the possibilities of this program for our graduates as well as for LAEDA,” said Mr. Lamboy. “This program is an extension of our mission of empowerment, empowering our graduates to take their financial futures into their own hands.”
 
The EDTP ROSCA Program is only available to graduates of the Entrepreneurial Development Training Program.  For more information on EDTP, please visit www.LAEDA.com or call 856-338-1177.