Micro Loans

MICRO LOAN PROGRAM

By providing micro loans to those in need, we are supporting small businesses and helping them stand on their own feet

The funds for micro loans are sent to the Covenant account in Addis Ababa and is then transferred to the project area account. The project director and the board will decide who will qualify for the Loan and sometimes a grant to start a business.

An example of this program in operation read the following story.

Ms. Bezue Elfeagede was a house maid in Debrbrhan. Her monthly income was 80 Birr, the equivalent of $11 Canadian per month. Even this amount is not guaranteed income for Bezue since the area in which she lived did not offer any guaranteed income for anyone.

Since she came to the Covenant Micro Loan Program, she borrowed 500 Birr, equivalent of $70 Canadian for the first time and started an Engera Business which is the local bread in Ethiopia.

She successfully returned the money and qualified for another 1500 Birr loan to expand her business.

Currently Bezue has returned the money she borrowed again and sometimes hires two or three people to help her keep up the business.

When the delegation of Covenant Ministry with the President and Vice President visited the project area, Bizue told them that she is finishing 200 k.g of tafe (the grain used to make engera) per week, which costs her 1000 Birr per week or 4000 Birr a month to buy it. With that kind of investment you can imagine what her profit will be.

Recently she has also opened a distribution shop in the area and near the nearby University. She has a dream of opening up a grocery store. Go Bezu!!

Once again thank you to our donors!