Establishment of a Revolving Credit Fund to Support Livelihoods Recovery in Northern Aleppo –Phase I

Building on the success and lessons learnt from the SRTF’s ongoing pilot intervention “Revolving Credit Fund(RCF) implemented in collaboration with Near East Foundation (NEF) in Northeast Syria (NES), the SRTF launched its second RCF project in partnership with NEF, namely: “Establishment of Revolving Credit Fund to Support Livelihoods Recovery in Northern Aleppo –Phase I”.

The new project aims to support 725 selected entrepreneurs (30% women and at least 20% youth) with high-growth potential with livelihoods services including financial and non-financial products to accelerate the growth of their small and micro-enterprises through four identified centers that were selected to serve urban and rural communities who host large numbers of entrepreneurs in Northwest Syria (NWS).  The support includes:

  1. Financial products and services, such as:
  • Micro-loans for individual entrepreneurs for new micro-businesses meeting criteria for growth potential and credit readiness. These loans range between US$400 and US$1200 with a repayment period up to 30 months and no mandatory collateral required; social solidarity can also support as a guarantee. A grace period up to three months is available for selected applicants, particularly for seasonal businesses.
  • Development loans for small businesses that have been operational for at least 12 months and have growth potential. These loans range from US$1,201 to US$3,000 and they require collateral in the form of guarantors and may also include owner’s income, assets, and legal guarantees.
  1. Non-financial products and services: to reduce business risks and increase business scalability (i.e., revenue, profits and jobs), complementary and targeted non-financial products and services will be provided that include tailored and sequenced trainings and demand-driven coaching and mentoring such as:
  • Business development training to help participants assess the viability of business ideas, develop business plans, and improve their practical management skills. For existing businesses, training focuses on product/service development, investment readiness, business diagnosis, growth plans, and new business systems or processes.
  • Life skills and financial literacy trainings to help vulnerable households manage irregular finances and ‎unexpected costs and mitigate risks associated with harmful coping strategies (e.g., increasing debt, selling productive assets, reducing food intake, relying on child labor and early marriage, school leaving).
  • Marketing and market access training and coaching to train on marketing and market access. Topics can include customer retention, access to new or improved markets, standards and certification, pricing, packaging and labelling, training.

At a total budget of EUR 1.79 million, this project will be implemented over a period of twelve-month, with a two-month inception and structuring phase with the goal to become an impactful, scalable, and sustainable fund that can help accelerate economic recovery and stabilization in NWS.

 

For more information on this project, please visit:

The SRTF Approves the Establishment of a Revolving Credit Fund to Support Livelihoods in Northwest Syria

 

For more information on the SRTF visit:

http://www.srtfund.org

 

Media outlets may contact:
communications@srtfund.org


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