AID grant no. LAC-0616-G-[SS]-5095-00 to Accion International/Aitec to support a micro-enterprise employment generation project in Paraguay

The program will draw on procedures used elsewhere by Accion, particularly in the Dominican Republic and Ecuador, which emphasize: a nonsubsidized approach to lending to microenterprises; use of solidarity groups to reduce credit risks; high volume, low overhead; and group training of microenterpreneurs in marketing, accounting, and business skills. Accion will select a Paraguayan PVO to work with and provide it with U.S., in-country, or third-country training, as needed. This grant specifically funds the PVO"s training, TA, and operational costs, and will not be used to finance the program"s credit operations, which will be funded through contribution from the Paraguayan private sector and from external donors.