FAPE, the Foundation for the Assistance of Small Businesses, is a not for profit, socially-minded institution founded on the 29th of November, 1984. The microcredit arm of FAPE then began on the 6th of March, 1986, for FAPE´s principle objective of providing small monetary loans to micro-entrepreneurs around Guatemala. FAPE has one central office within Guatemala City and serves over 3,200 clients (as of September 30, 2011).

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

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

FAPE offers credit and financial services principally to women and to those below the poverty line, especially those who primarily work in the agriculture, manufacturing, commerce, and service industries. It also offers technical assistance and trainings in business and marketing to its clients through Project Namaste as a way to support the development of the small business entrepreneur in Guatemala. Additionally, FAPE offers extensive health services to its clients including midwife services, basic health education, disease prevention (specifically targeted to women and children), medical services and medicine both through and a part from an alliance with Gems of Hope.

FAPE offers three principal loan products: 1) Individual loans, 2) Solidarity Groups, and 3) Village Banks. Of which, village banking is FAPE´s primary loan product serving the vast majority of its clients. It serves 17 towns in four departments around Guatemala City, Guatemala (Villa Nueva, Sacatepéquez, Chimaltenango, and Quiche).

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

English: FAPE Video English

Spanish: FAPE Video Spanish


Past Updates on FAPE from Kiva Staff

Status update on FAPE from Kiva Staff on 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 on FAPE from Kiva Staff on 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.