Proposal for Reform of the Small Projects Program and Creation of a Social Entrepreneurship Program (Programa de Empresariado Social)

This document was prepared by the Microenterprise Unit to explain and justify the need for reform of one of the Bank's smallest but most visible programs. This program -previously called the Small Projects Program and now the Social Entrepreneurship Program- is one of the key programs through which the Bank supports the productive activities of the poorest groups of society. This program provides grants and loans (up to US$ 500,000) primarily to NGOs, which execute projects ranging from expansion of agricultural cooperatives to handicrafts production to the creation of loan funds for microenterprises. IDB financing provides seed capital on concessional terms, which allows these organizations to deliver crucial services and support the creation of sustainable enterprises. The Bank supplements this financing with technical cooperation for microfinance and business development institutions to strengthen their operations and improve the quality of services they offer.