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A little incentive goes a long way to change lending for small farmers in Latin America


February 11, 2021 |
Catalytic Capital
A little incentive goes a long way to change lending for small farmers in Latin America
ImpactAlpha Editor
ImpactAlpha, Feb. 11 – Change the incentives, change the results.
Those results are dramatic for the $11.5 million in loans that agricultural lender Root Capital has made over the last two years to agribusinesses across Latin America deemed too small or too risky for other lenders to make. 
The nearly three dozen businesses went on to generate almost $50 million in revenue. They paid $41 million directly to smallholder farmers in Colombia, Costa Rica, Guatemala, Honduras, Mexico, Nicaragua and Peru. Already, four of those businesses have been able to access new loans from other sources.  ....

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