Aynikuy
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Mountain Fund Develops Microenterprise In Peru "Aynikuy", in Quechua means to help each other or to cooperate. Aynikuy is also the name of The Mountain Fund's new micro-finance program in Peru.

Why a micro-finance program in Peru?
The typical salary in Peru (if you can get a job) is about $150 per month. Families cannot live on so small an income so many families have started very small businesses as street vendors, small libraries, hardware shops, grocery shops, etc. These entrepreneurs do not have easy access to needed capital to purchase inventory, or to expand and improve their businesses. Banks ask for collateral which people do not have, or charge interest rates that are too high.

Who will benefit?
Street vendors and small family businesses are the intended recipients of our micro-loans. These are family businesses where the mother and children work together either to supplement the household income, or in many cases, this is the only income the family has. On nearly every street corner in Cusco there is a vendor with a cart selling soda, chips, nuts and fruit. Each day these vendors struggle to find funds to stock their carts so they have something to sell. The families typically have 3 or 4 children to support.

What will Aynikuy Do?
Aynikuy plans to raise $5000 US as a revolving loan fund to provide micro- loans to these cart vendors. Each day a vendor may request a loan of up to $100 US from Aynikuy to stock their cart or store. Interest is at 7% and daily payments must be made on the loan. The entire loan balance is to be re-paid every month before additional credit can be obtained.

How do we know it works?
We have tested this program on the streets of Cusco for the past year. At present there are a total of 20 vendors obtaining loans.
8 street vendors that sell: candies, drinks, gum
8 small grocery shops
3 newsstands that sell books and cards
1 hardware shop

The trial program has resulted in all 20 participants making payments daily as agreed. Only one participant isn't paying the full amount but he is steadily making payments.
With this success behind us, we are ready to make this a regular program at The Mountain Fund and need your help to raise the capital needed to establish our permanent loan fund of $5000 US. With this fund we will be able to make small loans to at least 20 more family businesses in Peru. These small loans make all the difference in the world to people living in a country where 54% of the population lives below poverty, making less than $2.00 a day.