Envest News (For the PDF of Envest's June 2008 Newsletter, click here)
January 2010
Envest Portfolio Reaches $1,000,000!
On January 22, 2010, Envest’s portfolio topped $1,000,000 USD with the signing of three additional transactions. Envest completed three loans in rapid succession to reach this mark, including a loan to a new MFI partner in Ecuador, FACES (see page 3) and loans for two established partner MFIs, CEPRODEL and PRESTANIC. These transactions were made possible through social investments from our members, including one $400,000 investment. The founder of Envest, Jon Bishop, highlighted the significance of this landmark in Envest’s
development, stating, “Reaching $1 million in portfolio means that we are providing loans to about 2,000 families that otherwise would not have access to credit. It also means that we have the track record necessary to begin attracting larger amounts of capital to serve far more borrowers worldwide.”
January 2010
University of Wisconsin-Madison Microfinance Student Group Founded by Envest Intern
The Microfinance Leadership Initiative, or MLI, was recently founded by Envest Intern Megan Zuba to engage the UW Madison student body in microfinance education, outreach, and participation. Megan and fellow Envest Intern Maria Kamenetsky presented the new MLI at the UW Student Organization fair on January 27 and met with many students interested in participating. The turnout for the first meeting of the MLI on February 3rd drew 16 students, several of whom volunteered for leadership roles. The MLI will hold bi-weekly meetings on Wednesdays at the new UW Student Activity Center.
The Microfinance Leadership Initiative aims to educate all UW students about basic microfinance concepts. The group is also planning awareness and fundraising events and potentially student investment campaigns. The MLI also plans to collaborate with other UW student organizations with similar missions, including environmental groups, human rights and poverty alleviation advocacy groups, and business and investing clubs. The MLI is currently planning to participate in several student festivals to begin its campus education efforts.
January 2010
Envest Welcomes Four New Interns
The Spring 2010 semester has brought a wealth of talent and enthusiasm to the Envest Intern Team. As Envest looks to expand our partner base in Central and South America and even into Africa and Central Asia, identifying elegible partners and performing country and institution-specific due diligence requires a growth in Envest’s research capacity. Several UW students and even a Middleton High School student have volunteered to contribute their time, effort, and language skills to the cause. Envest would like to welcome Megan Zuba, Maria Kamenetsky, Ismat Bhuiyan, and Teresa Floberg to the the team.
Megan Zuba has founded a new student organization at UW called the Microfinance Leadership Initiative that is aimed at promoting awareness of microfinance and Envest among students at UW. Megan just joined Envest as an intern a couple of weeks ago and has already taken considerable initiative.
Maria Kamenetsky has joined Envest as an intern for spring semester. She is an International Studies and Economics major at UW. She is fluent in Russian and speaks intermediate Spanish. She has begun looking at MFIs in Central Asia to determine whether there are any potential partners there. Her Russian language skills will allow her to read financial reports and websites.
Ismat Bhuiyan will intern with us spring semester also. Ismat is a student at Middleton High School interested in conservation and economic justice. She was born in Bangladesh and has a particular interest in helping reduce poverty there. She will begin her internship by reviewing the Bangladeshi microfinance sector for us.
Teresa Floberg is a senior in Management and International Business at University of Wisconsin - Madison. Teresa is also proficient in Spanish having studied in Argentina. She will do her honors thesis on microfinance as part of her internship with Envest.
November 2009
Envest Expands Into Panama
With a $100,000 loan to Panamanian microfinance institution ProCaja disbursed on November 23, Envest has now entered its fourth country in Latin America. Although this represents the first time Envest has provided a loan in Panama, the Central American country has already played a role in Envest’s history. Envest founder and CEO Jon Bishop was living in Panama when he decided to pursue microfinance. He went to Panama to study ecology and start an organic farm, and after witnessing the link between environmental distruction and a lack of viable economic opportunities, he returned to business school to pursue microfinance management. Consequently, it is particularly exciting to begin operations in the country that originally inspired Envest’s creation.
While Panama has one of the most developed financial sectors in Central America, and Panama City houses many large international banks, the rural people of Panama still often face many of the same challenges to obtaining credit as those in their neighbor countries. Of the approximately 3.3 million residents of Panama, an estimated 1 million live in poverty and 500,000 live in extreme poverty. PROCAJA serves strictly rural borrowers in the western provinces of Veraguas, Herrera, and Los Santos. In contrast to the other countries that Envest serves, Panama has a very small microfinance sector, partly because Panama’s finance sector is somewhat more accessible to people of modest means. PROCAJA focuses on rural areas in which residents have inadequate access to credit.
PROCAJA began as an economic development organization, and is in the process of shifting to being a financial institution. Envest is the third source of commercial credit and first international source for PROCAJA. We are delighted to be part of the development of a growing institution in an underserved market.
October 14, 2009
Envest Hosts First Annual Membership Meeting
On Wednesday, October 14, Envest hosted its Annual Membership Meeting at the Goodman Community Center in Madison, Wisconsin. The meeting was divided into two parts: a business meeting for members followed by a general community meeting.
Envest CEO and Vice President Jon Bishop opened the business meeting with a welcome and updates. Sergio Loureiro, Treasurer of the Envest Board of Directors, gave an overview of the year’s progress from the financial perspective. Most notably, he demonstrated that Envest is on track to be in the black by the end of 2009 and that Envest accounting procedures follow the Generally Accepted Accounting Principles (GAAP) standard for much larger organizations. Mr. Loureiro also discussed projections for Envest growth in 2010. The membership meeting included a vote for the members of the Board of Directors, all of whom were re-elected.
Following a brief intermission and dessert, Julia Glad gave a brief welcome to the Envest Community Meeting and provided a basic introduction to the Envest mission for newcomers. Jon Bishop then spoke about his trip to Nicaragua, and Emily Brucher spoke about her visit to microfinance institutions and entrepreneurs in Ecuador.
September 2009
New Volunteer Interns Donate Time, Knowledge
Bridgette Valdez-Kogle
Bridgette is a graduate student in the Conservation Biology and Sustainable Development program working on her Master’s degree. Her thesis topic is public participation on the U.S. - Mexico border. She is interested in how to include all people in environmental planning decisions. Envest’s vision and goal of universal access to financial services is perfectly consistent with Birdgette’s personal and professional aspirations. Bridgette is currently taking Business and the Social Side of Sustainability taught by Tom Eggert, a member of the Envest Advisory Board. We are delighted to have Bridgette’s enthusiasm and competence in the office.Josh Monifi
Josh joined the Envest team as an intern for the 2009-10 academic year. He is a senior majoring in International Business at the University of Wisconsin School of Business and is also taking Business and the Social Side of Sustainability taught by Tom Eggert. His passion for environmental sustainability and social justice is a perfect fit for Envest. Josh’s knowledge of business and computers along with his quick sense of humor have made him a welcome addition to the team.
September 2009
Envest Article featured in new Microfinance Journal, THE MICROFINANCE INSIDER
An article entitled “Little Guys helping Little Guys” by Envest Director of Communications Julia Glad was published in the inaugural edition of The Microfinance Insider, a new journal dedicated to promoting awareness of developments in the microfinance industry. The article highlighted Envest’s partnership with Home Savings Bank and the Envest mission to identify and reach out to small and medium sized microfinance institutions in order to maximize availability of microfinance in more remote areas and to promote healthy markets.
September 2009
Envest Community Members Contribute Tremendous Talent, Experience and Time to Envest Progress
Envest would like the give a special thanks to the following members of the Envest Community who have gone truly above and beyond in their passion for the Envest mission and their willingness to contribute their efforts.
Kathy Hankard, CFP Envest Cooperative Member, Investor, Financial Planning Advisor and owner of Fiscal Fitness, LLC. Kathy has been instumental in exploring financial vehicles to enable investors to invest in Envest through IRAs. Although the feasibility of investing in Envest microfinance through IRAs is not yet verified, her assistance, dedication, and volunteered expertise are truly appreciated.
Susan Good, CFA Sue has generosly contributed her significant Wall Street expertise from years of specialization in placement of alternative investments for institutional investors. She has opened many possibilities for working with foundations and other insitutional investors such as mutual funds.
Valerie del Perugia Valerie has graciously volunteered her time and background in business to help Sue and Jon develop an investment product appropriate for foundations. Her time and effort help make this large project more manageable.
Matthew Rosen Matt has been extremely helpful in improving the Envest website from the ground up for both structure and content. The results of his efforts will be unveiled sometime in December when a new version of the website, with some significant additions of information about Envest partners and a more streamlined look, will be posted.
September 2009
Envest Presents at Local Fairs to Increase Public Awareness
Envest had a presence at several fairs around Wisconsin in the summer and early fall. Envest was present at the following events:
-The Midwest Renewable Energy Association’s Renewable Energy and Sustainable Living Fair in Custer, Wisconsin from June 19-21
-The Atwood Street Summerfest in Madison in late July
-The Fighting Bob Fest in Baraboo, WI in early September
-The Willy Street Fair in Madison in the middle of September
-The Food for Thought Festival in Madison, which takes place off the Capitol Square in late SeptemberWe had great response at all five of the events, which drew large crowds of both local residents and visitors from other areas. The fairs provide an excellent opportunity for us to educate the community about microfinance and the possible tools with which we can fight poverty, as well as to inform them about Envest’s efforts to supply much-needed capital to entrepreneurs and incorporate environmental issues into microfinance.
The fairs also serve as a platform to expand our network of supporters, and we made many valuable contacts at fairs this year. In the past, Envest’s involvement at these events has helped identify new board members, advisors, members, investors, and interns. We look forward to participating in all of these fairs in 2010.
August 2009
Envest Intern's Visit to Ecuador Leads to New Partnership with Ecuadorian MFI-FACES
Pronounced “Fa-Says,” FACES is a small MFI headquartered in Loja, which is in the far south of Ecuador. It serves the Andean and Amazonian regions of the southern part of the country.
FACES is a poverty reduction and human development project, of which the microfinance program is one part. In addition to the microfinance program, FACES has programs in community development, health, environment, and business training. FACES has a clinic in the same building as the home office of the MFI. The clinic provides physical exams for $10, which is far less than anywhere else in Loja. Students need a physical exam to attend school, so a significant number of children are in school because FACES provides affordable physicals. The clinic also provides family planning services, domestic violence prevention programs, and assistance for victims of domestic violence. The clinic distributes pamphlets encouraging respectful treatment of people with disabilities.
August 2009
Microfinance Borrowers Take Out Loans to. . . Lend?
Microcredit Entrepreneurs distribute benefits of microcredit to their neighbors, offering “micro” microcredit loans.
While in Quito visiting Microfinance Institutions and their borrowers, Emily Brucher was able to witness firsthand a growing segment of microfinance entrepreneurship: microfinance borrowers starting their own community lending operations. Such enterprises, sometimes referred to as “micro-microcredit” or “nanocredit” represent an important source of capital for families needing a small loan to cover a temporary expense but who are not looking to start a business. The need for such credit was previously often met by predatory money lendors, often at high personal risk and extremely high rates. Institutionalizing credit availability, regardless of the scale, raises standards and fosters responsible lending.
August 2009
Envest Intern Travels to Ecuador to Meet with MFIs, Entrepreneurs
Envest Intern Emily Brucher traveled to Ecuador in August 2009 to establish relationships with MFIs in Ecuador. She visited established Envest partner MFI CEPESIU, met with then-potential partner FACES, and talked with MFI management teams. As a beginning Quechua speaker, Emily was able to meet with many indigenous MFI clients in rural areas as well as urban entrepreneurs. She was particularly delighted to report that Envest’s partner MFIs employ Quechua-speaking loan officers and are thus able to bring credit to indigenous communities in the Ecuadorian Andes. The entrepreneur stories featured in this newsletter were collected during Emily’s interviews with clients of partner MFIs.
August 2009
Envest Featured on Milwaukee Television News
The Milwaukee News Station, Fox 6 News, sent representatives to Envest’s Madison office to film a 6-minute long segment on Envest. The feature, which followed the involvement of Envest Director of Communications and longtime Milwaukee-Area resident Julia Glad, highlighted the inspiring stories of the microentrepreneurs Envest works to finance and the unique investment opportunity Envest offers.
News anchor Mark Concannon interviewed Julia Glad and Paul Sager, Envest investor and Secretary of the Board of Directors, about the social mission of Envest and the processes and investments that enable Envest to help meet the credit needs of entrepreneurs in the developing world.
The feature included particularly in-depth details about the influence of microfinance in the lives of entrepreneurs and showed many pictures from Envest’s colletion of photos taken during trips to Envest Partner Institutions.
the Envest feature story was aired twice in August and September in prime spots in early evening and morning slots. As a result of the feature, Julia was invited by the alumni association of her high school, Divine Savior Holy Angels of Milwaukee, WI, to present at their annual Women’s Career Day in March of 2010.
October 23, 2008
Envest Signs Fifth Transaction and Reaches Half Million $ Mark
With the combined dedication of individual social investors and Wisconsin’s Home Savings Bank, Envest has reached the half million mark for its disbursements to international microfinance institutions. As the average loan size in Latin America is about $600, this means that about 830 families have directly benefitted from credit Envest has made available to them.
Envest’s partner for its fifth transaction is PRESTANIC, a Nicaraguan microfinance institution with a long-standing relationship with Envest. While this transaction represents the first official involvement with PRESTANIC, board members of PRESTANIC provided invaluable assistance with the logistics for beginning operations in Nicaragua. In the summer of 2007, Envest founder Jon Bishop, Communications Manager Julia Glad and Country Representative Francis Soza Huete met with PRESTANIC CEO Armando Gutierrez in Managua, (shown below) to discuss transaction details and meet with microfinance entrepreneurs. Envest is pleased to be able to lend to this consistently supportive and socially proactive organization. PRESTANIC also offers a solar panel lending program to bring green energy to rural homes and businesses.
A long but successful road...
July 2007- Envest Founder Jon Bishop and Communications Manager Julia Glad at the PRESTANIC headquarters during a preliminary visit
Country Representative Francis Soza Huete with PRESTANIC CEO Armando Gutierrez during the October 23, 2008 contract signing- Envest's first official transaction with PRESTANIC
October 15, 2008
David Szakonyi, a 2006 graduate of the University of Virginia and a research associate at the National Endowment for Democracy, has generously volunteered to share his microfinance experience in Central Asia as a pro-bono consultant. Fluent in Russian, David has lived and worked for two years in several former Soviet republics, including at a microfinance institution in Tajikistan. He will be doing research on MFIs with a sustainability component to their lending, especially programs for environmentally appropriate technology such as solar panels.
David’s knowledge of Central Asia along with his fluency in Russian creates the possibility of exploring lending operations in Central Asia.
October 8 , 2008
Envest Signs Transaction With Partner Microfinance Institution FODEM
Envest's fourth total transaction took place with established Envest partner FODEM (the Foundation for the Development of Women), an microfinance institution specializing in making economic opportunities available to women. FODEM was the recipient of the second Envest transaction as well (see below). The FODEM-Envest transaction, comprised of credit totalling $100,000, was made possible through the assistance of individual social lenders and funds from Home Savings Bank.
September 2008
UW-Madison Senior Joins Envest Team as Intern
The Envest team would like to welcome Natalie Eisner, a senior at the University of Wisconsin-Madison majoring in International Relations and Economics. A dual citizen of the US and France, Natalie is fluent in French and has studied abroad in Senegal and traveled extensively in West Africa. Using her language background and familiarity with Francophone African culture, she will be working to identify and analyze potential microfinance partners in Africa. Envest has been interested in exploring opportunities to work with microfinance institutions (MFIs) in Africa since receiving requests for credit from African MFIs. Natalie’s experience and language skills will be instrumental in initiating relationships with African MFIs.
July 11, 2008
Envest featured in Wisconsin State Journal
On July 11, 2008, Envest was featured in an article entitled "Madison's Envest Seeds Little Loans Around the World". For the full text of the article, click here
July 2, 2008
July 2, 2008- Envest completed its first transaction with CEPESIU, a microfinance institution based in Quito, Ecuador. Home Savings Bank has again generously agreed to match investor funds to provide a total of $100,000 for the transaction, which was signed July 3, 2008.
June 21-23, 2008
For the second consecutive year, Envest was a participant at the 19th Annual Midwest Regional Energy Association Fair in Custer, WI. The fair brings together non-profits and businesses with a focus on sustainability to highlight progress and innovation in energy and environmental issues. The largest of its kind in the US, the fair draws visitors and participants from around the country. During the fair, Envest was the featured subject in an interview with local Madison radio station The Mic 92.1.
June 13, 2008
Tom Eggert Joins Envest Advisory Board to contribute expertise in business and sustainability
March 24, 2008
FODEM, a Nicaraguan Microfinance Institution specializing in women entrepreneurs, becomes second Envest partner MFI in Nicaragua
On March 28, ENVEST completed a transaction with FODEM, a Nicaraguan Microfinance Institution (MFI) specializing in offering capital and services to women entrepreneurs. The agreement, in which Envest issued a US $100,000 loan to FODEM makes the organization Envest’s second partner institution in Nicaragua.
At the transaction signing at FODEM's headquarters in Managua. On the left is Envest's Nicaraguan agent, Francis Soza Huete, and on the right is Maria Auxiliadora Venegas Perez, CEO of FODEM. March 24, 2008 FODEM's headquarters in Managua, Nicaragua
March 23, 2008
Home Savings Bank - Envest Agreement Multiplies Investor Impact
Home Savings Bank, a progressive community bank based in Madison, WI, became Envest’s first domestic institutional partner with a groundbreaking transaction leveraging investor capital. On March 23, 2008, Home Savings Bank matched $20,000 of investor funds with an addiitonal $80,000 to complete Envest’s second transaction. This transaction, the first in a series of similar transactions, enabled Envest to complete a transaction with FODEM (see adjacent article). This institutional partnership with Home Savings Bank effectively means that every investor dollar from indivual investors allows Envest to supply $5 of much-needed credit to microfinance entrepreneurs in the developing world. The transaction is structured as a commercial loan financing 80% of Envest receivables from a previous loan MFI loan transaction. The transaction, the first of a series, represents a major start towards linking smaller MFIs with financial institutions in the US.
December 31, 2007
ENVEST PRAISED BY NICARAGUAN MEDIA FOR SUPPORTING SOLAR ENERGY AND SUSTAINABILITY
Following its transaction with CEPRODEL, a Nicaraguan microfinance institution dedicated to environmentally sustainable entrepreneurship, a Nicaraguan newspaper, Nuevo Diario, published an article highlighting Envest’s role in providing much-needed funding for local solar energy projects. The article, entitled Credit Illuminates the Countryside” by journalist Ernesto Aburto, quotes CEPRODEL Financial Manager Marvin Garcia as saying, “The money from Envest will enable a great number of rural families in Villa Nueva, El Sauce, Achuapa and other arid municipalities to have electricity 24 hours a day from solar panels.” CEPRODEL collaborates with solar firm Technosol to provide training to borrowers for installation and maintence.
Regarding the potential impact of solar power on entrepreneurship in those areas, Mr. Garcia added, “people can add value to their business processes without using firewood or petroleum products. For example, beekeepers would be able to not only sell their honey in bottles, but also harness electrical energy to make use of the honey comb to produce soap, candle wax, and cosmetic creams.” The article also focused on Envest’s unique background and investor base, highlighting the ultimate source of the capital, Envest’s investors, as “for concerned citizens who wanted to use their investments to promote the empowerment of women, environmental and agricultural sustainability, and scial and economic wellbeing.“For the full text of the article, click here.
The original Spanish version of the article can be found at:
http://impreso.elnuevodiario.com.ni/2007/12/31/contactoend/67033
December 10, 2007
Envest signs first transaction with Nicaraguan microfinance institution CEPRODEL
Envest is proud to announce our first transaction of US$100,000 with CEPRODEL, a microfinance organization serving 12,000 microentrepreneurs throughout Nicaragua.
About CEPRODEL
Based in the capital city of Managua but with many local branches throughout the country, CEPRODEL is a medium-sized Nicaraguan Microfinance institution with a loan portfolio of approximately US$7,250,000. Founded in 1991, CEPRODEL now supports local sustainable enterprise by offering loans, training and business consulting services for entrepreneurs working their way out of poverty. With just over 120 employees, CEPRODEL serves approximately 12,000 clients, more than triple the number of people it reached in 2002.
May 12, 2007 - 10pm
Madison WISC Channel 3
Envest was the feature organization in this profile of opportunities in sustainable business by WISC Channel 3. Envest Communications Manager Julia Glad was interviewed at The UW Memorial Union Terrace regarding her role in developing Envest. UW Business Professor Tom Eggert, who has contributed greatly to the early stages of Envest development, was also interviewed about the growing interest in sustainability and the potential for jobs in the field.
