HAITIAN DEVELOPMENT FOUNDATION PVO-OPG

PADF will implement the project with USAID long- and short-term technical assistance. PADF will assist local business and community leaders in establishing the Haitian Development Foundation as an autonomous, public assistance corporation. The HDF promotional department will recruit 17 animateurs (AMTR"s); each must be a local resident at least 20 years old and must pass a test of basic business aptitude. The PfP, a PADF development foundation in Africa, will provide 10 weeks of training to the AMTR"s in accounting, business administration, group dynamics, proposal writing, project analysis, evaluation, and field testing. An AMTR supervisor will also be trained. AMTR"s will identify potential clients and assist their applications for credit. The AMTR and a loan officer will conduct a feasibility study of each proposal to determine the financial rate of return and the necessary credit and technical assistance inputs. If credit is approved, the AMTR will supervise use of the funds and provide managerial assistance. By the third project year, the number of applications handled by each AMTR will increase from 30 to 48. A loan fund for small businesses will be created and administered through HDF"s loan department. Applicants must be small businesses of 20 or fewer employees and must limit their debt level to one-half the value of their firm"s assets. Funded activities must utilize local resources and project a profit increase of at least 20% of investment per year. PDAF and HDF will prepare a procedures manual for loan disbursement and collection. Approximately 75% of the loans will be short-term (up to 12 months) loans for working capital and 25% will be medium-term (two to five years) financing for capital investments. Principal repayments will be returned to the loan fund, while interest payments will go to a reserve fund.