Introduction
The AAA Small Credit Fund aims to provide small loans to those members of AAA, who
are not able to acquire loans through the financial market. Sponsors and partners of AAA have recognized this handicap and have decided to facilitate a credit fund for small loans dedicated to AAA members.
The fund assumes mutual trust between the members and the dedication to endorse this
sustainable, revolving fund by supporting each other in making the loans work and growing the business of the applicants.
The loan can be used for various purposes, such as working capital, investments, etc. The interest rate is based on keeping the fund sustainable and will be ( close ) to the relevant market rate. The fund offers an unique opportunity for members, who don’t have access to the financial market to acquire finance for growing their business.
Pilot phase: Since the concept of the Fund contains a number of new elements it must be tested before it can be rolled out. Uganda , Rwanda and Kenya are selected for the test. Each country should select the best business club(s) to participate.
Roll Out: The Pilot will be preliminary evaluated 6 months after the disbursement of the first loan. A second evaluation is scheduled after the last loan has matured.. Based on each evaluation it will be decided if, and if so how, the Fund will be developed further. The conditions, such like interest rate, form part of this evaluation and may be adjusted
Success criterium Pilot: The pilot will be successful if 90 % of the loans are repaid and interest paid
Purpose: The loan is earmarked for Capex, which immediately results in additional cashflow and/or
for working capital, which will immediately create additional revenues.
on time and in full.
Fund volume: For the Pilot a total of € 300,000 will be available, € 100,000.- for each of the 3
countries. Once the pilot phase proves, that the fund will be sustainable, the fund will be extended to
€ 400,000, with further options for extension in the future.
Target Group: AAA members of the Chapters with a turnover of less than USD 500,000