CAT helps secure micro loans for Iraqis

BAGHDAD, (Army News Service, Feb. 13, 2006) – Over the past four months, the Soldiers of Company D, 490th Civil Affairs Team met with more than 20 key Iraqi leaders in an effort to promote economic and social growth within their area of operations.

One of the ways the CAT promotes financial growth is through a process of micro loans. Micro loans are similar to loans in the United States with one exception, micro loans focus on developing countries but in Iraq they’re focused on families. An average micro loan consists of less than $500 invested toward a necessity that would enrich the family in receipt. The theory is the profits of the investment will pay off the loan and a subsequent loan will be drawn. They cycle will then continue as a family grows more financially stable to work its way out of poverty.

During its tenure with 1st Squadron, 75th Cavalry Regiment, 2nd Brigade Combat Team, 101st Airborne Division, the team coordinated new projected development with local officials and businessmen for a U.S. Agency for International Development program, which will build the first micro-loan center to serve the greater Iraqi community. Loans granted at micro-loan centers are usually focused towards agricultural initiatives in order to target grass-roots development.

The team’s interaction with the leaders helped foster a climate of working relationships between the local citizens and 1st Sqdn., 75th Cav., according to Capt. Jeff Davis, who serves as the team leader for the four-Soldier team which is responsible for the coordination of the Consequent Management Support Packages, which contain supplies directed to assist local citizens and businesses. Davis added that he had attended several micro-finance seminars in Amman, Jordan. The result of those meetings secured more than $250,000 to build the micro-loan center and, if milestones are met, there’s a possibility to secure more than $1 million.

“Much of the success we have enjoyed in our area of operation can be directly attributed to the great effort on the part of the Capt. Davis and Sgt. 1st Class Pope’s Civil Affairs Team,” said Lt. Col. Lee Walters, commander, 1-75 Cav., at a recent farewell dinner for the team. “Their professionalism, determination and genuine care for the mission and Iraqi people have paid great dividends toward the growth of this region.”

The Team has since moved on to work with the Soldiers of 2nd Battalion, 502nd Infantry Regiment, 2nd BCT, 101st Div. where they will continue help foster economic and social grown in its area of operations.

(Capt. Sebastian Montagne & 2nd Lt. Cassandra Crosby serve with the 2nd BCT PAO, 101st Airborne Div.)

I worked for several years as administrative secretary for about 400 micro type loans. We worked throughout Latin America, and the funding came from AID counterpart funds, and funding from a private source.

This was 30 years ago and the loans and grants ranged from $100 to $10,000. On the whole I would say that womens projects went especially well. We also found that while 15 to 20% of urban loans went into default, we never had a rural loan that was not repaid. A few times we had to extend the payment period, but they always repaid after a time.

Here are some of the kinds of projects implemented: Three sewing machines for a women's sewing cooperative. Auto repair tools for a taxi driver's dispatch center and coop. A small motor launch to transport farm products from a distant location to good markets. Medicine and surgical supplies for a rural clinic. A rammed earth adobe block making machine after a local earthquake.

These kind of small projects that go directly to people are far more cost-effective than the huge contracts that are now the subject of controversy. If anyone is becoming involved in such a project and would like to continue personal communication let me know. I will check back here for the rest of the week.

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