The US-based Arthur B. Schultz Foundation will provide small and medium-sized Vietnamese companies interest-free loans worth a total of US$180,000.
SMEs with a sound financial position, assets for collateral, good plans to effectively use and repay the fund will be able to borrow up to $20,000, Do Thanh Long, deputy director of the Center for Economic Development Studies of the Hanoi-based University of Economics and Business, which announced the Thriive, formerly known as Social Microenterprise Initiative in Vietnam program, said.
Job creation will be the most important criteria for getting funds, he said.
Borrowers will have to repay the loan in two years, but not in cash: They have to provide free goods and services to the poor for the value of the loan.
The program focuses on SMEs in 25 northern cities and provinces, prioritizing those with women bosses.
It will help them leverage investing in fixed assets and Property-Plant and Equipment (PPEs), Long said, adding that beneficiaries will be chosen from next month and disbursement will be made from January.
In the last five years the foundation has lent $370,800 to 28 SMEs, benefiting around 80,000 poor people in Vietnam.
ABSF, founded in 1985, is dedicated to improving the quality of life around the world through supporting small business entrepreneurs, women's empowerment, and disabled mobility. It is also active in Kenya and Palestine.
