KPLU Local News
(2010-04-12)
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Washington CASH Executive Director Cheryl Sesnon with Fulbright Scholar Zala Ahmad, at the US State Department enrichment seminar on social entrepreneurship.
Photo by Bellamy Pailthorp.
It started with an idea from the developing world - the concept of micro-lending, made famous by Nobel laureate Muhammad Yunus, who founded the Grameen Bank in Bangladesh. Washington CASH emulates that organization by putting potential businesses together into groups of peers. Many of them are women making hand-crafted items out of their homes. Executive Director Cheryl Sesnon says Washington CASH administers their loans of up to $5,000. But the group decides who's ready.
"And then the bad news is if you start defaulting on your loan or get late on your payments, none of your peers can get a loan until you get current. And so there's a social collateral that gets formed. And it's very powerful. Currently we have about a 98% repayment rate in our peer loans."
Washington CASH submits reports to the credit bureau, so the borrowers can build their credit rating and gradually qualify for bigger loans. The program has taken off with the down economy - the number of applicants has nearly doubled over the past two years. They also offer training and other support for business development and foster community though bi-weekly dinners.
Sesnon spoke last week in Seattle. She was part of a panel discussion about fostering change through social entrepreneurship. It was put on by the U.S. state department for Fulbright Scholars from around the world. Afterward, students from Italy, Hungary and Afghanistan huddled around, wanting more information.
Zala Ahmad is studying international economics and finance at Brandeis University. She also co-founded an organization to help women and children in Afghanistan's Farah Province, which she says could learn some lessons from Washington CASH.
"The project that we are now want to work is for women, to find them a source of income. So, besides that we want to give them like some literacy and business training. And how to find the market here - that's the biggest challenge we have."
Cheryl Sesnon of Washington CASH says her organization is about to open a retail store in Pioneer Square. The new shop called "Ventures" will give clients real-life experience in getting their products to market.
For More information:
Washington CASH, the Community Alliance for Self Help
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