The Colombia
Project - Plan for Sustainability
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TCP $
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Max $ Reinvested
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Total Pos Loan Pool
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assumed 10% avg loss
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Monthly Interest earnings
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Addl Op Ex from repaid loans
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Total TCP $ for Op expense
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year 1
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$1,500
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$0
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$1,500
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-$150
|
$75
|
$675
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$750
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year 2
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$3,000
|
$750
|
$3,750
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-$375
|
$188
|
$1,350
|
$1,538
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year 3
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$4,500
|
$2,250
|
$6,750
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-$675
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$338
|
$1,823
|
$2,160
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year 4
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$6,000
|
$4,725
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$10,725
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-$1,073
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$536
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$1,931
|
$2,467
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year 5
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$4,500
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$8,643
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$13,143
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-$1,314
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$657
|
$1,183
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$1,840
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year 6
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$4,500
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$12,213
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$16,713
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-$1,671
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$836
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$0
|
$836
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year 7
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$1,500
|
$16,281
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$17,781
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-$1,778
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$889
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$0
|
$889
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year 8
|
$1,500
|
$17,781
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$19,281
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-$1,928
|
$964
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$0
|
$964
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year 9
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$1,500
|
$19,281
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$20,781
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-$2,078
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$1,039
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$0
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$1,039
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year 10
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$1,500
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$20,781
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$22,281
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-$2,228
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$1,114
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$0
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$1,114
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year 11
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$0
|
$21,966
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$21,966
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-$2,197
|
$1,098
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$0
|
$1,098
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Total
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$30,000
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Assumptions
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TCP mission is to
maximize access to micro-credit within displaced communities in Colombia
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TCP aims to build
sustainable programs and move on to new areas
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90% repayment rate
within one year with 10% loss
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10% annual interest
(calculated on 50% of total amount)
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increasing
allocation to loan pool; starts at 50%, goes to 100% by year 6
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decreasing
allocation of repaid loans to TCP partner; starts at 50%, goes to 0 by year 6
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monthly expenses to
support program operating within an organization = $750
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Operating costs =
estimated monthly salary of $500 to $600, plus bank fees, & miscellaneous
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partner will
purchase needed equipment and develop efficiencies over first 5 years
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Maximum to any one
partner would be $30,000 in 2007 dollars
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Above will have to
be recalculated as the value of the dollar fluctuates.
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Additional
Factors affecting sustainability
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1. Existence of an
oversight board
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2. Availability of
additional funding sources (replication) as occurred in Santa Marta and
Popayan
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3. Creation of Loan
recipient savings accounts to provide security
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4. Partner
organization runs additional programs which cover overhead; TCP covers one
salary
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Projected funding requirements to take on
new partners |
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Projected |
year
1 |
year
2 |
year
3 |
year
4 |
year
5 |
year
6 |
|
Group 1 |
$1,500 |
$3,000 |
$4,500 |
$6,000 |
$4,500 |
$4,500 |
|
Group 2 |
$0 |
$1,500 |
$3,000 |
$4,500 |
$6,000 |
$4,500 |
|
Group 3 |
$0 |
$0 |
$1,500 |
$3,000 |
$4,500 |
$6,000 |
|
Group 4 |
$0 |
$0 |
$0 |
$1,500 |
$3,000 |
$4,500 |
|
Group 5 |
$0 |
$0 |
$0 |
$0 |
$1,500 |
$3,000 |
|
Group 6 |
$0 |
$0 |
$0 |
$0 |
$0 |
$1,500 |
|
Group 7 |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
TOTAL |
$1,500 |
$4,500 |
$9,000 |
$15,000 |
$19,500 |
$24,000 |