Making a difference one loan at a time

Business is booming
In downtown Apia, the capital city, a long line of women formed outside the SPBD office, as budding entrepreneurs waited their turn to apply for small-business loans. If they qualified, they were each to be given the equivalent of about $200, and receive training in simple accounting and business practices.

With loans in hand, the eager villagers did all the rest. Working in groups, they opened many of their own small businesses throughout Samoa. Many of them made and sold handicrafts, jewelry, clothing, mats and construction material; others opened roadside stores and restaurants, drove taxis and grew coconuts and other produce.

"They've taken the bull by the horns. They've invested in themselves, they've got some dreams, they've got some skills, and they're making money," said Casagrande. "I'm impressed."

Ulufale Umage used her loan to buy a machete, fertilizer and a pesticide sprayer. She also rented market space so she could begin selling coconuts.

Lonise Godinet began sewing dresses and school uniforms and earned enough money to re-model her home.

Weaving baskets and raising pigs, Gaupole Kenose moved her family from their run-down home to a much bigger and brighter one with a better floor. And her plans didn't stop there.

"I want another big loan, to make another new house for me, and my husband and my children," she announced, flashing a wide grin.

Accountable women
Casagrande's loan program has concentrated most of its efforts on empowering women. In Samoan society, women play a critical role in managing family life, and the SPBD directors came to believe that they were the ones most likely to spend their business profits wisely.

HOW TO HELP Internet: South Pacific Business Development Foundation E-mail: Mail: SPBD-USA, 3102 Circle Hill Road, Alexandria, VA, 22305 SPBD-USA is a registered U.S. 501c3 organization that can provide donors with a tax deduction.

To stay in the program, they must pay to have all their children put in school within a year of their first loan. They also are required to closely account for all their finances, and to help other women whose businesses suffer, and who fall behind in paying off their loans.

Casagrande insists he is not running a give-away program, but a serious, self-sustaining business.

In six years, SPBD has issued nearly 10,000 loans, totaling $3 million. And almost every one of them has already been repaid with interest — on time.

Casagrande credits the impressive repayment rate — better than that of most commercial lending institutions — to SPBD's attention to Samoan cultural sensitivities. The program has the blessing of village chiefs, women's groups and the Samoan government.

"This is not only a great thing for the economy, but I always keep making the point it's vitally important for social stability," says Deputy Prime Minister and Finance Minister Misa Telefoni. "You're not just empowering women, you're adding dignity to their lives."

And speaking of Casagrande, whom he's been pestering to expand the loan program, Telefoni adds: "I think he's definitely made a difference, and coming from the United States as he does, I think he's also flown the flag for the United States here in Samoa, in a very effective way."

A big appeal
In the village of Vaitele recently, Casagrande was treated to yet another welcoming ceremony, an important Samoan tradition. As a huge lunch was spread over the head table, a women's business group, decked out in bright blue outfits, sang and danced to Polynesian rhythms. In honoring Casagrande, they also celebrated their own success in sewing and food production. And they proved they weren't unfamiliar with the art of the deal.

Facing Casagrande, the group leader drew a big laugh when she loudly asked for a really big loan. In broken English, she said, "We need big, 10, $10,000!"

Everyone laughed, all right, but few thought the determined entrepreneur was actually kidding.