When they got off their plane, they informed us that they had been prepared by previous attendees to these meetings to expect an exhausting agenda.

SosteNica did not disappoint them. On their first full day in Pennsylvania we got to work in the SosteNica office at 9, reviewing the week ahead and looking over the many financial documents which they had prepared. That evening, they made their first public presentation, held at the Chester County Book and Music Company, courtesy of Chris Bell.

Very early the next morning, we left for New York City where we toured the Cloisters in the Bronx before meeting with representatives of several religious orders, hosted by the Sisters of Charity of New York, on the campus of the College of Mount Saint Vincent College. That evening, Tish Gibbs (SosteNica board member) and Bill Collins (former mayor of Norwalk) hosted a public presentation at their home. The group talked about our work in Nagarote, the sister city of Norwalk, Connecticut.

Early the following morning we headed to New Haven where the SosteNica Board of Directors held our meeting to discuss, among other things, the impact of the economic downturn on micro-credit in Nicaragua. Shortly after the four hour board meeting, we were guests of honor at the home of Lee Cruz and Sarah Miller, who received more than a dozen prospective and current investors, including several young people from area colleges and high schools. Lest CEPRODEL's team relax overly, they were the keynote speakers at a dinner that evening, hosted by Jim Farnam and Marcy Stovall. For entertainment, they attended the Yale Ballroom Team annual performance, after which they had a night time walking tour of the campus.

Sunday morning, at 7AM we caught the car ferry from Bridgeport to Port Jefferson, New York in order to attend the services at St John's Episcopal Church. St John's has long been a supporter of SosteNica, and continues that involvement. Following the service there was a coffee hour, then a very well attended luncheon hosted by Mary Lindsay, with help from investors George and Nancy.

Monday morning we worked in the office, putting the finishing touches on our annual contract addendum, before going into Philadelphia for a brief tour of Independence Hall and the Liberty Bell. We ended the trip with an intimate presentation to the Micro-Finance Club of Haverford College followed by a going away dinner of steak for those who like to eat meat but don't get enough of it while working with vegetarians. Our Nicaraguan colleagues were tired but satisfied with their work at the end of the week. While we were all sad to see them go, we felt pleased with the results of their visit and look forward to next year's gathering in Managua.

Fulbright Scholar Joins SosteNica Team

     SOSTENICA is pleased and proud to announce the addition of Rachel Lindsay to its Nicaragua staff. While an undergraduate at Wesleyan University, Rachel co-founded Long Lane Farm, a project born of a desire to use agriculture as a tool for social change. After graduating from Wesleyan in 2005, Rachel studied and traveled in Ecuador and Peru before joining the Food Bank Farm in Hadley, Massachusetts, where she ended this past season as Assistant Manager. The Food Bank Farm is a CSA (Community Supported Agriculture) farm with an amazing 1,100 membership shares - one of the largest in the nation.

     Rachel has been an investor in SOSTENICA since March, 2007, and is the third generation of investors from her family, being preceded by her parents George Lindsay, Jr and Nancy Metz, and her grandmother Mary Lindsay.

     Rachel was awarded the prestigious Fulbright Fellowship to work and study in Nicaragua for 2009. She will be collaborating on research at the IPM (Integrated Pest Management) Laboratory of the Agro-Ecology Department at the UNAN (National Autonomous University of Nicaragua) in León. At the same time, she will assist SOSTENICA in measuring and improving on the impact of our Rural Sustainable Development Loan Program. Rachel is working closely with CEPRODEL, visiting rural and urban borrowers, and helping to advance our programs in gender equity, reforestation and soil conservation. All of us in the SOSTENICA family feel great enthusiasm for the energy and intelligence Rachel brings to our Nicaraguan program.

     Rachel will maitain a website to report on her work in Nicaragua. The link is:
     http://sustainablenicafarming.wordpress.com/

  "From the Margin to the Mainstream" was the theme of the Eleventh annual Inter-American Forum on Micro-enterprise, also known as Foromic. A central theme of the conference, held in Asunción Paraguay back in October was the importance of including micro-entrepreneurs and others at the base of the economic pyramid into the economic mainstream. Panelists discussed topics such as technology, rural finance, housing, micro-insurance, and how to reach more people with better, faster, and more affordable credit services to improve their businesses and their livelihoods.

    SosteNica's president, Alan Wright joined CEPRODEL's CEO Miguel Gonzales, CFO Marvin Garcia, and board member Dr. Julio Cisneros at the conference to network with peers while working on our 2009 program. During the conference, US stock market values plummeted and the global economy entered a severe recession. Expert economists and economic historians at the conference departed from their prepared remarks to reflect upon the unfolding economic crises.

   They observed that, while this is the worst crisis to hit the US since the depression, there have been numerous recent financial crises in the third world, from which micro-finance institutions can learn. Indonesia went through a financial sector melt down from 1970 through 1983. Bolivia had a financial sector crisis from 1997 until 2001. In both cases the MicroFinance Institutions were involved along with the banks. In both cases the commercial banks were hit very hard, many went bankrupt, as is happening in the US today. However, the MFI-NGO sector did much better. Why?

   Because while quality of micro-finance portfolios was affected, in general, micro-entrepreneurs and their micro credit institutions behaved differently from the conventional banks and borrowers.

   In Bolivia, for example, when the entire commercial sector was frozen for one month, blocked by protest in the streets, the micro-businesses actually grew, working at night when the barricades were unmanned.

   Micro-entrepreneur production units such as those that borrow from CEPRODEL/SosteNica are often essential They provide food and services that do not disappear or diminish in times of crisis. In fact, they may even find new opportunities, even when the main economy is deeply affected.

   Yes, fuel costs went up, and with fuel, up went food costs, putting pressure on both the MFIs and their clients. In the case of CEPRODEL and SosteNica, nearly 50% of our loans are now rural. The wholesale and retail rise in food prices actually means unexpected income for those who produce food. While their production costs are also up, the added income may be more than enough to compensate. Meanwhile, the urban borrower continues to work, sell, produce, doing so in a more flexible way than a factory that is deeply dependent on a stable economy and market.

   A study of 640 MFI organizations across 88 countries in times of financial crisis found that the quality of the MFI portfolio was only slightly affected, while commercial banks were crashing. The dangers to MFI's tend to be twofold -- volatile exchange rates (devaluation) can hurt. However, Nicaragua is unique in the world, having predetermined micro-devaluations. The other danger is that of capital flows. Big investors may withhold, or even withdraw investments at a time when the MFI needs more, not less capital.

   Both CEPRODEL and SosteNica are strong, despite the crisis. SosteNica will pay dividends on time and will honor all commitments. CEPRODEL continues to make loans and has a low loan loss rate. The conference strengthened our confidence in our industry and in the roles SosteNica and CEPRODEL play in it.  

   During the weekend of March 10 - 13, 2007 SOSTENICA hosted CEPRODEL's Executive Director, Miguel Gonzales; CFO, Marvin Garcia; and Director of Credit, Orlando Cortes. Current and prospective SOSTENICA investors had a chance to hear about our work at three public events: New Haven was hosted by SOSTENICA Board Member, Lee Cruz and Sarah Miller. Norwalk was hosted by Mich Zeman and Tish Gibbs from the SOSTENICA Board and the Men's Team. West Chester was hosted by Investor, Saint John's Church of Devon.
    Also the three met with Alan Wright and Jay Pressman from the SOSTENICA Board to discuss the current state of our work and to plan for the future.
   To watch a video on youtube of Miguel's presentation in New Haven please click: watch video
   Thanks to Sarah Miller for the video.

Alan, Jay, Miguel, Orlando & Marvin

SOSTENICA Investor and Men's Team Member Larry Comstock

From Jay

     Our visits with Nicaraguan borrowers began in Nagarote, sister city to Norwalk, Connecticut. Nagarote is a small town accessed by a well maintained primary highway. Antonia Contreras Rueda, one of the first clients in town to participate in the loan program, and has repaid close to a dozen loans over the years. Walking through her dining room we met several young men working at sewing machines, sorting fabric and assembling backpacks on the back porch. She attaches a "Jansport" label for export, but her son hopes to patent their own brand name one day. He asked about a loan to grease the wheels of the bureaucracy, but CEPRODEL's Orlando promptly informed the young capitalist we were not in that business! Mrs. Contreras also has used SOSTENICA credit to purchase 850 laying hens. She supplies many families in Nagarote with their daily ration of eggs. This industrious family is a great SOSTENICA success story.

From Pete

     I was most surprised to discover that the Nicaraguan farmers' concerns were not unlike the issues my local colleagues have wrestled with for the past 35 years! Our most common shared frustration is that the cost of production equals or exceeds market value at harvest time. The SOSTENICA farmers do all the right things -- diversifying, developing new markets, engaging in cooperative education, and protecting natural resources. Their greatest challenge however, lies in their lack of machinery and water. Given the proper resources and fair prices for their crops, these farms could be completely sustainable. Productive agriculture is the foundation for a healthy, independent economy. SOSTENICA's rural lending offers hope for both the farmers and the community

From Chris

     In visiting with many of CEPRODEL's staff and clients, I was moved by the pride people took in their work. In the countryside, farmers would offer us gifts of pineapples or honey or cheese that they had produced. In the city clients would beam as they displayed the clothes, or beds or saddles or nacatamales that they had made. The CEPRODEL staff also took great pride in their efforts. One example is Orlando Cortés, the director of Credit for CEPRODEL. He came up with a credit program based in the markets. Staff, who work from an office in or adjacent to the market, can get to know borrowers and make quick decisions on commercial loans. This program has been a great success. And the cash flow from this program, in turn, allows CEPRODEL to continue lending in the countryside supporting sustainable rural development.

A team of men (who refer to themselves as ordinary) have come together to support one another in leading extraordinary lives. One of their commitments has been to support the people of Nicaragua by promoting SosteNica's loan program. Their first public outreach effort involved Wilton Congregational Church and the Talmadge Hill Community Church. On October 29th, 130 people gathered to raise awareness about the situation in Nicaragua and to celebrate and support the work of SosteNica. According to one of the organizers: "SosteNica is unique among micro-lending organizations in its focus and commitment to its purpose. No others designate such a high percentage of its investment monies (100%) in actual development projects. Very cool!"

Men's Team member Jon Sabrowski addressing the gathering.

Orlando, Carlos and Miguel

From left to right: Julio, Mich, Tish, Bill and Orlando

From left to right: Julio, Lee, Alan and Orlando

Marvin Garcia, CEPRODEL Financial Director