Photo: Peace Corps Romania/Bonnie Zogby
Vasile Berghea proudly demonstrates his new sweep-cutting saw purchased through a USAID-funded loan.
CHF was able to provide a much faster loan processing time than the banks, allowing Sibel to receive their funds within days rather than months.
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Initiative
For two years, Berghea had a line of credit through a formal bank. In order to get the line of credit, he had to pledge his working space as collateral and therefore had no other collateral available to finance the purchase of new wood processing equipment.
In partnership with USAID, CHF International began a five-year $13.3 million loan program to provide small- and mid-sized businesses with access to credit. CHF Romania, a branch of CHF International, was willing to accept Berghea’s purchase of new equipment as collateral, and quickly approved a $10,000 loan repayable within 24 months. This break-through condition for granting loans has enabled many small business owners like Berghea to qualify for the loan program.
In Romania, there are few banking resources for small- and medium-sized businesses or for individuals in need of small loans. CHF Romania provides an alternative - direct microcredits for small business development and working facilities or infrastructure improvements.
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