More than just a loan

Esperanza International is the story of what can happen when people believe in an idea and act to make it come true. In 1985, David Valle, then catching for the Seattle Mariners, decided to play winter ball in the Dominican Republic. Like many North American players before him, Dave didn't know exactly what to expect while living and playing outside of the United States.

As parents and as people who take special interest in kids, David and Vicky were deeply troubled by the condition of the boys and girls. They spent many hours talking about the children and made a commitment that as soon as they were able, they would return to the Dominican Republic to do whatever they could do to make a difference.

In 1995, Dave and Vicky founded Esperanza International as the response to their commitment. In 1999, Esperanza started official operations in DR. Today, Esperanza International has nine branch offices in Dominican Republic and two in Haiti (one microfinance office and one complementary services office). Esperanza International Foundation is registered as a 501(c)(3) non-profit organization in the State of Washington, USA and as a non-governmental organization in the Dominican Republic.

Values

* Following Christ and living the Gospel in all of our relationships
* Honoring the worth, dignity and potential of every person
* Developing the whole person: body, mind, and spirit
* Strengthening the family
* Fostering a sense of community wherever we serve
* Learning from all those with whom we serve as we endeavor to teach truth
* The earth as God's creation that we steward for the good of all people
* Achieving excellence in all we do
* Pursuing integrity over image
* Enabling every person to have the opportunity to become all that God intends

Principles

* Address the root causes of poverty, especially those impacting children, and facilitate activities that lead to improved living conditions, reduced infant mortality, greater life expectancy, better nutrition, improved education, increased income, environmental improvement
* Focus on families and communities as the agents, planners, implementers and evaluators of the development efforts, where the vision comes from the people, and the ownership is theirs
* Improve the capacity of people to learn from their experiences of development, to be empowered by that process and to lead more fulfilled lives with greater understanding of the world they live in
* Free people from the bondage and oppression of cultural, social, spiritual and economic forces that inhibit becoming all that is intended
* Build alliances and partnerships with other institutions with compatible goals, such as churches, non-governmental organizations and local community groups
* Lead to more technically appropriate and sustainable activities and practices that contribute to self-sufficiency and self-reliance
* Encourage systems that ensure accountability and integrity
* Improve the leadership, management and organizational skills within the families and communities of a project area. 

All borrowers are eligible to participate in a pre-paid health insurance plan. Each member can pay a modest fee and receive medical care at partner clinics during their time as active Esperanza clients. We also have a life insurance program for the members. For a very modest premium, the insurance will pay off their loans if they, their spouse, or children die.

Our female associates can participate in a developed training program to learn more advanced business and leadership skills and money management. 

As Bank of Hope members work together in the normal course of managing their bank and the various business that the bank supports, they begin to develop a deep sense of accountability and support for each other. At the regular membership meeting of the banks, personal, family and community issues are discussed. The members find, sometimes for the first time, that other women face similar difficult circumstances. They provide each other moral, spiritual and physical support in ways that most have never experienced before.

There are also very practical, and sometimes, life saving expressions of support for members of the bank. When disasters strike, the members rally around each other to provide not only moral support but often financial and material support as well. In a very small way, they develop an informal safety net to protect against the unexpected disasters.

All of this leads to an elevated sense of self-worth, dignity and personal confidence. After the obvious economic benefits from being a member of a Bank of Hope, the next most stated benefit is that our clients gain respect and status from their families and other community members. This leads to profound changes in their perception of who they are and their place in the family and community. As dignity and self-worth are restored, they have hope for the future.
 

September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 

The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise Esperanza's risk rating from 4 to 3 stars. The analysts have found that Esperanza's risk variables, reviewed in the new risk rating model, were most representative of a 3-Star rating.

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

Esperanza has been informed of our analysts’ findings and their corresponding change in rating.