Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

FAPE, the Foundation for the Assistance of Small Businesses, is a nonprofit, socially-minded institution founded on November 29, 1984. The microcredit arm of FAPE was established on March 6, 1986 to achieve FAPE´s principle objective of providing small monetary loans to micro-entrepreneurs around Guatemala. FAPE has one central office in Guatemala City and serves over 3,300 clients.

FAPE´s vision is to be a leader in the Guatemalan microfinance sector while maintaining its core principles and values – providing attention to the entrepreneurs it serves through credit, technical assistance, business training and auxiliary services to improve its clients’ lives. Through its work and by the hand of God, FAPE hopes to see communities positively impacted and poverty alleviated in the areas it serves.

Mission

To stimulate the development of micro-entrepreneurs, small business owners and their communities through financial services, training, and Christian orientation – all provided with personalized attention.

Services

FAPE offers credit and financial services principally to women and to individuals below the poverty line, especially those who work in the agriculture, manufacturing, commerce and service industries. It also offers technical assistance and training in business management as a way of supporting the holistic development of the small business entrepreneur in Guatemala. FAPE also offers free medical services to its clients as well as insurance plans that cover debt balances, hospitalization costs and funerary services.

FAPE offers three principal loan products: Individual Loans, Solidarity Groups, and Village Banks, of which village banking is FAPE´s primary loan product, which serves the vast majority of its clients. FAPE operates in 26 towns in three departments around Guatemala City (Villa Nueva, Sacatepéquez, and Chimaltenango).

If you’d like to learn more about FAPE please watch this short video:

English



Spanish




Status Update - January 14, 2010

Kiva became aware of FAPE’s high delinquency rate on Kiva a few months ago, when FAPE’s spike in delinquency was due to some problems FAPE had reporting repayments to Kiva. However, after those problems were resolved, FAPE’s delinquency rate on Kiva remained high due to the difficulty some Kiva entrepreneurs have experienced in repaying their loans as a result of the global economic crisis. 

However, Kiva does not consider most of these loans to be “at risk” because, though they are delinquent, most are delinquent by less than 30 days. Typically, in microfinance, loans are only considered “at risk” if delinquent for more than 30 days.

Status Update - October 27, 2009

Kiva is aware of the high delinquency rate for FAPE. This has been caused by a reporting error, so the delinquency rate for FAPE is overstated. We are currently working with FAPE staff to resolve the problem. We apologize for the inconvenience.

 
A Note on FAPE’s Portfolio Yield:
 
We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.
 
For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.
 
We seek to support loans that don’t impose an unjustifiable cost burden on hardworking borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale. With this partner, Kiva capital is supporting a loan product that costs less than the partner's typical products.
 
Factors that drive up the costs that this partner organization charges its borrowers include:


     • They provide very small loans. This leads to higher operating costs, since providing each individual loan presents a minimum per-unit cost.
     • They provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.
     • They’re a small company or organization that hasn’t yet achieved the scale and efficiency necessary to reach sustainability and reduce pricing, but the impact of their services merits the opportunity to prove their business model.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 10, 2007 Oct 12, 2005
Total Loans $1,750,750 $625,070,650
Amount of raised Inactive loans $0 $371,925
Number of raised Inactive loans 0 311
Amount of Paying Back Loans $246,375 $121,669,425
Number of Paying Back Loans 298 133,038
Amount of Ended Loans $1,504,375 $503,029,300
Number of Ended Loans 1,894 633,907
Delinquency Rate 0.00% 4.76%
Amount in Arrears $0 $3,751,762
Outstanding Portfolio $136,644 $78,748,351
Number of loanDelinquent 0 17,806
Default Rate 1.89% 1.11%
Amount of Ended Loans Defaulted $28,364 $5,607,499
Amount of Ended Loans $1,504,375 $503,029,300
Number of Ended Loans Defaulted 86 17,326
Currency Exchange Loss Rate 0.00% 0.11%
Amount of Currency Exchange Loss $0 $679,982
Refund Rate 0.17% 0.73%
Amount of Refunded Loans $2,975 $4,592,300
Number of Refunded Loans 3 5,127

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 90.29% 74.18%
Average Loan Size $463 $418
Average Individual Loan Size $863 $654
Average Group Loan Size $760 $1,837
Average number of borrowers per group 2.2 8
Average GDP per capita (PPP) in local country $4,155 $3,409
Average Loan Size / GDP per capita (PPP) 11.15% 12.27%
Average Time to Fund a Loan 4.99 days 5.79 days
Average Dollars Raised Per Day Per Loan $92.75 $72.20
  Average Loan Term 8.88 months 10.52 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,421 313,554
  Journaling Rate 71.68% 42.15%
  Average Number of Comments Per Journal 0.04 0.07
  Average Number of Recommendations Per Journal 1.63 1.77

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 58% PY 31.00% PY 33.35% PY
  Profitability (return on assets) 4.5% 4.5% -1.49%
  Average Loan Size (% of per capita income) 7.50% 18.00% 38.01%

Country Fast Facts

Field Partner Staff

Luis Gilberto Canton Merida
Gloria Corona
Rebeca Garcia
Marco Antonio Hernandez
Jose Luis Hernandez Alvarado
Roel Alfonso Hernández Bail
Mabilia Joj Ojer
Manuel Garcia Marroquin
ceili salvatierra