On September 23, 2010, Sitawi, a Brazilian social enterprise fund, and Lumni, a fund that helps students finance their education, announced new commitments at the annual meeting of the Clinton Global Initiative, a forum on international development founded in 2005 by former US President Bill Clinton.
Sitawi pledges to raise USD 1.5 million for its Social Fund, which provides loans to organizations with a social mission that do not have access to formal financing. These loans will reportedly range from USD 50,000 to USD 250,000 at an interest rate close to the base rates set by the Brazilian Central Bank.
Lumni, an organization with offices in the US and Latin America, pledges to provide 10,000 students in Chile, Colombia, Mexico, and the US with financing for their higher education. Funding for these loans would come from a new social investment fund, and students accepted into the program would have to agree to repay a fixed percentage of their income for a period after graduation.
About Sitawi:
Based in Rio de Janeiro, Sitawi is a nonprofit social fund that aims to increase the impact of organizations committed to social and environmental causes. It finances existing revenue-generating initiatives of social organizations through loans, it also provides consulting services. Loans range from BRL 100,000 (approximately USD 58,450) to BRL 400,000 (approximately USD 233,801), with interest of approximately 1 percent per month. The social fund is supported by donations.
About Lumni:
With offices in Chile, Colombia, Mexico and the US, Lumni designs and manages social-investment funds that finance the education of students. In exchange, each student commits to pay a fixed percentage of income for 120 months after graduation. It currently operates both a for-profit and nonprofit investment fund. To date, it reportedly HAS financed the education of approximately 1,000 students.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Clinton Global Initiative: President Bill Clinton Hosts the Second Day of the Clinton Global Initiative?s 2010 Annual Meeting
http://press.clintonglobalinitiative.org/index.php?s=43&item=92
[2] MicroCapital Universe: Lumni:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lumni
[3] MicroCapital Universe: Sitawi:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sitawi
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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