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


Status update — January 25, 2016

After 29 months on Kiva and 255 loans fundraised, PAC has graduated out of Kiva’s Experimental Partnership program and been given a risk rating of 1.5 stars. 

Partner description:

PAC (Association for People in Community Action) is a community development organization in Nicaragua that offers clients loans, technical assistance and access to markets. It believes that increased agricultural production and improved technology can bring economic development to high poverty zones.

The organization introduced its first loan products in 1999 to help borrowers improve their farms and businesses, while generating income to sustain PAC’s varied operations, including programs in food relief and crop diversification.

PAC’s primary program is called the Self-Managed Model for Economic Development (MADEL). Its goal is to link agricultural producers with sustainable and profitable markets. This entails: 

1. Financial Services: Credit products, value chain integration services (production, logistics, and commercialization) and market intelligence.

2. Development Services: Youth leadership training, promoting local investment, technical assistance, and technological innovations in agriculture and quality control. The organization also helps farmers get important certifications (like certified organic, Fair Trade USA, etc.)

3. Agribusiness Services: Access to markets, both international and national.

PAC thinks of these services as three distinct pillars all supporting economic development. Loans are only one component of its offerings, and are considered appropriate only in conjunction with other services like market information and product value chain integration.

Today, PAC works in over 500 communities throughout Nicaragua, with an emphasis on the north where agriculture production is concentrated. These regions overlap with some of the highest poverty rates in the country. 

To reach the right clients, PAC works with self-managed groups of 15 to 20 members that know the local area and can recommend borrowers. As of mid-2013, there are 88 of these groups with 1,450 members total. Of these, 963 have taken out loans of their own through PAC. Borrowers are also supported by GNRs, groups of 6 to 20 members that provide technical advice and standards, goals, harvest plans and commercialization channels to help farmers increase their incomes. 


PAC estimates that the average income in the areas where it works is around $2 a day, and many of its loans go to large farms that create fair wage jobs for Nicaraguans living below the poverty line.

To give these producers access to high-value markets, PAC has developed relationships with exporters and commercial companies. The organization negotiates contracts with each of these parties. Primary exports include taro and coffee, yucca, ginger and cacao.

Right now, Kiva lenders’ funds are used to support coffee growers -- some of the organization’s poorest borrowers. Due to PAC’s relationship with Fair Trade USA, its coffee grower clients are guaranteed certain minimum prices for each pound of coffee, Fair Trade labeling (increasing the value 20 cents per pound), and if the product is organic, a selling price increase of 30 cents per pound.

Kiva funding is used to support 3 loan products in particular:

1. Field renovation loans: 5-year loans for planting new coffee trees as older trees cease to be as productive. New trees enable farmers to maintain high crop yields. These loans include a one-year grace period with no capital or interest payments due. This gives farmers the time for trees to mature.

2. Working capital for farm maintenance: 15-18 month loans to help farmers afford fertilizer, labor, ground conservation, etc.

3. Farm investment loans: For larger scale investments on farms, including asset purchases, construction, water treatment systems and more. Loan terms vary between 5 and 7 years.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 21, 2013 Oct 12, 2005
Total Loans $364,125 $939,391,750
Amount of raised Inactive loans $4,250 $523,475
Number of raised Inactive loans 5 519
Amount of Paying Back Loans $86,175 $144,680,000
Number of Paying Back Loans 74 177,234
Amount of Ended Loans $273,700 $794,188,275
Number of Ended Loans 251 994,961
Delinquency Rate 3.80% 7.81%
Amount in Arrears $2,213 $7,430,834
Outstanding Portfolio $58,199 $95,114,087
Number of Loans Delinquent 7 19,254
Default Rate 0.12% 1.40%
Amount of Ended Loans Defaulted $335 $11,137,575
Number of Ended Loans Defaulted 1 31,507
Currency Exchange Loss Rate 0.10% 0.46%
Amount of Currency Exchange Loss $363 $4,278,396
Refund Rate 1.47% 0.63%
Amount of Refunded Loans $5,350 $5,887,300
Number of Refunded Loans 4 5,924

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 14.02% 75.19%
Average Loan Size $1,106 $401
Average Individual Loan Size $1,106 $634
Average Group Loan Size $0 $1,772
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $4,800 $5,896
Average Loan Size / GDP per capita (PPP) 23.05% 6.80%
Average Time to Fund a Loan 14.07 days 6.93 days
Average Dollars Raised Per Day Per Loan $78.64 $57.88
  Average Loan Term 18.88 months 11.1 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 95 488,756
  Journaling Rate 31.20% 41.62%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.19

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 21% PY 27.00% PY 25.92% PY
  Profitability (return on assets) -15.1% 0.9% -0.29%
  Average Loan Size (% of per capita income) N/A 40.00% 17.68%

Country Fast Facts

Field Partner Staff

Victor Gutierrez
Norlan Pineda
Manuel Urbina