WHO ARE WE?

ADVISORY BOARDS

Choukoun has two Advisory Boards, one in Essex, Connecticut, USA, and one in Deschapelles, Haiti, that set policies, select loan recipients, administer the loans, and govern the operations of Choukoun. Each Advisory Board is comprised of leading citizens in their respective communities who serve as unpaid volunteers.

FAVACA

Choukoun operates through FAVACA (The Florida Association for Volunteer Action in the Caribbean and the Americas) that provides assistance with respect to donations, volunteers, technical advice, and infrastructure. FAVACA, a 501(c)(3) organization, makes it possible for donors to make tax-deductible contributions to Choukoun. All donations for Choukoun are made through FAVACA. US citizens making donations to FAVACA-Choukoun can claim the donation as a charitable contribution. FAVACA is a private not for profit organization formed in 1982 by Florida Governor (now former U.S. Senator) Bob Graham. FAVACA’s Florida International Volunteer Corps is the only program of its kind in the country and enjoys statutory authority under Section 288.0251 Florida Statutes. A state appropriation, voted annually since 1986, has provided a funding base for an estimated 200 volunteer missions to Latin America and the Caribbean this year.

Florida’s International Volunteer Corps is a unique development partnership with the Caribbean and Central America. Its aim is, through training and technical assistance, to improve environmental, social and economic conditions in the region. Volunteers are top experts in their fields and are thus able to impart invaluable knowledge and information to their international counterparts.

FAVACA establishes sustainable partnerships between non-governmental organizations, such as Choukoun, universities, government agencies and businesses in Florida and the Caribbean and Latin America. In response to requests from partner organizations throughout the region, FAVACA has conducted more than 1,400 technical assistance and training volunteer missions reaching approximately 38,000 individuals in 29 countries over the past 25 years.

To learn more about FAVACA, go to www.favaca.org.

HOW CHOUKOUN WORKS

Choukoun operates through a set of policies established by its Advisory Boards.  When funds are available for new loans, people in the community are invited to submit an application describing the project, their experience, and their plan for repayment.  The Advisory Boards review the applications but the Essex Advisory Board makes the final determination of who receives the loans to avoid any appearance of favoritism.  All borrowers are required to open an account at a local bank before they receive the loan proceeds, which is often their first step in commercial banking.  The loan policies are set forth below.

WHO IS ELIGIBLE TO BORROW?

Unless otherwise determined by the Essex and/or Deschapelles Advisory Boards:
1. Currently, applicants must reside in the Deschapelles area of Haiti.
2. Applicants must describe a valid business idea that will benefit their community.
3. Applicants must demonstrate s/he has competence in either the business or in the proposed business.
4. Applicants must demonstrate that the proposed business has a more than reasonable chance of success.
5. Essex and Deschapelles Advisory Boards may determine preferential treatment for certain type of loan applications, e.g. loans for food production, loans to women, loans for land restoration, etc.
6. Applicants must be generally known to be of good character.

INELIGIBLE LOANS

Unless otherwise determined by the Essex Advisory Board:
1. No loans are given to members of Deschapelles advisory board.
2. No loans are given to groups.
3. No loans are given for construction.
4. No loans are given to people who intend to loan the money to others.
5. No loans are given for the repayment of outstanding debt, including debt incurred in anticipation of receiving a loan from Choukoun.
6. No loans are given to “commercants” who buy in bulk and resell.
7. No loans are given for projects that harm the ecology (fertilizers, dry cleaning, etc.) in the opinion of the Essex advisory board.
8. No loans are given to applicants who have a negative loan history.
9. No loans are given for projects that would be unfair competition for existing businesses as determined by the Essex advisory board.
10. Loans may be given to persons who have borrowed from Choukoun and are in good standing.

LOAN POLICIES

Terms of the Loans

Unless otherwise determined by the Essex and Deschapelles advisory boards:

1. Interest: Interest is charged on outstanding principal at a rate of 10% per annum. Interest is charged on the total amount of the loan granted and made available to the borrower regardless of the amount withdrawn.
2. Repayment of principal: The repayment date of the principal is agreed upon by Choukoun and the borrower prior to the grant of the loan.
3. Default penalty: Overdue interest and principal may incur an additional interest fee of 10% per annum until paid in full.
4. Prepayment: Loans can be prepaid at any time without any penalty.
5. Security/collateral: No collateral will be required to secure the loan. Choukoun, however, will be able to pursue all legal remedies in the event of nonpayment of a loan.
6. Death, disability of borrower: In the event of the death or disability of the borrower prior to the repayment date, the loan terms will be renegotiated with the family members or any other person who may continue the business. “Disability”  means the physical inability of the borrower to continue the business for which the loan was made.
7. Natural disasters: In the event of a natural disaster affecting the entire Deschapelles area, the Essex Advisory Board, upon the recommendation of the Deschapelles Advisory Board, will reconsider the terms of the loans.
8. Bank account: Each applicant must agree to open or maintain a bank account at Capasov Bank in Verettes, Haiti, or such other bank as may be determined by Choukoun in order to receive the proceeds of the loan and to make loan payments. Such account will be used solely for the disbursement and repayment of funds to and from Choukoun until principal is paid in full. The borrower will be responsible for any fees charged by Capasov.
9. Withdrawal of loan proceeds: Any withdrawal of loan proceeds by the borrower must be signed by two members of the Deschapelles advisory board. The borrower must demonstrate a proper purpose of the withdrawal.
10. Withheld loan proceeds: A percentage of the loan proceeds equal to the first interest payment will be reserved and held in the borrower’s account. Such amount may be used for the repayment of interest or principal, as may be agreed upon by borrower and Choukoun.
11. Use of proceeds: Loan proceeds may be used solely for the purposes described in the loan application unless prior approval is given by Choukoun.
12. Membership in Choukoun: All borrowers in good standing can take advantage of Choukoun services and remain members of Choukoun after the loan is repaid.  Membership in Choukoun will be revoked if aborrower is not in good standing. Members are considered to be in “good standing” if interest and principal is repaid in a timely manner and there is no violation of the ethical agreement. Members in good standing may be considered for the Deschapelles Advisory Board.

MENTORS

Choukoun not only gives loans, it also provides advice and mentoring to borrowers.

SUPPORTERS

Several of our borrowers are artisans who need a larger market to sell their products.  Choukoun helps them find a market in the United States by introducing their wares to retail stores. Please support stores that carry Choukoun products.

KEY STATISTICS

 As of March 31, 2010:

Number of borrowers: 20
Amount loaned: A total of US$23,000.

Loan amounts:  Loans have ranged from $250 to $2,500.  The average loan is approximately US$1,150.

Interest rate: 10% per annum payable every six months.

OUR MISSION

Choukoun’s mission is to combat poverty and joblessness by providing micro business loans and advice to small businesses and entrepreneurs in rural Haiti that will benefit the borrower and the community served.

Donations are Used Again and Again!

Donations are used many times over. Nearly 100% of your donation is used to make loans.  As loans are repaid, the principal is reused to make loans to other borrowers.  So your donation is used many times over to help many Haitians initiate or grow their business.  Interest on the loans are used primarily for new loans as well.

A “Choukoun” in Haitian Creole is literally translated as a thatched roof, usually circular, that is a common gathering place where people meet to discuss important subjects collaboratively.

WHAT DO WE DO?

We provide small loans and advice to people in rural Haiti in an effort to combat poverty and joblessness.  Loans are used by the borrowers to initiate or augment small businesses that will benefit the borrowers and the communities served.  It was started by a group of people in Essex, Connecticut and Deschapelles, Haiti who saw a need to provide credit to rural Haitians who had, or who would like to start, small businesses who would not otherwise have access to credit.  Since the borrowers identify the need in the community, the loans also serve the communities as the businesses prosper and grow. The borrowers represent a cross-section of the communities served. 

Loans are awarded after an extensive application process. Each borrower signs an ethical agreement.  Borrowers become members of a group knowing that he or she will be encouraged and assisted by fellow members and the Choukoun Advisory Boards located in Deschapelles and Essex. 

The interest and principal of each loan recycles into the Choukoun account and is available for additional loans to other borrowers.   Thus, donations made to Choukoun are used many times over.

Our Choukoun building in Deschapelles is a place for borrowers to meet with Board members and to meet as a group to work collectively.  It is also used for classes, seminars and workshops for business training and mentoring.