Fuentes Libres is a program that provides small loans to women in poverty who have few opportunities for changing their situation. Many are single mothers caught in a system that sees mothers with small children as unemployable. Some have husbands that are away working for long periods of time. In their situation, many have few options except begging.

The staff of Fuentes Libres identifies a group (12 - 20) of motivated women in a community. Each woman must have a plan for economic advancement that would be possible if she could receive a small loan of 1200 - 1500 pesos ($120 - 150.00US). The group meets with the staff person to review the plans of each member. When the group decides that the project of an individual woman is fully developed she becomes eligible to receive a loan. Support from the group is available for those who need help in developing their plan. The members of the group meet each week to review and discuss the progress of their projects. Additional support for the project is available from Fuentes Libres and from others in the womens' group as the projects get underway. Some examples of successful projects include: home sewing business, raising rabbits or chickens, making candy to sell from a cart, raising and selling flowers or vegetables, making and selling jewely, aprons, shoes...etc...

The entire loan must be repaid within a 4 month period, through a system of regular payments. Over 99% of the recipients fully repay their money on time. Once the money is repaid the women are eligible to receive another, larger loan to expand their business.

The role of Fuentes is the creation of independent neighborhood banks that continue to support the local community after Fuentes moves on to other locations. After two years of receiving loans, the local womens' bank becomes independent, and Fuentes is only involved in an advisory capacity. The loans then become totally internal - from the money that the women themselves save and from loan paybacks and interest received. The women have created an independent grassoots banking system! Some women use the banks only to save money and never require or receive a loan. This is a methodical and safe way for them to begin saving - something they have never been able to do!

Fuentes Libres originated through the dream of the Covenant Church ( Iglesia del Pacto ) seeking to demonstrate the love of God through bringing about practical changes in the lives of the poor. To learn about the origins of the "microcredit" concept, go to: Dr. Muhammad Yunus and the Development of the Grameen Banking system