FINCA de El Salvador (“FINCA”)
The objective of the proposed loan is to support the lending activities of FINCA El Salvador, which provides working capital financing to the lowest-income entrepreneurs so they can create jobs, build assets, and improve their standard of living. These entrepreneurs are the owners of micro and small enterprises from the country working in a variety of productive sectors, especially commerce, industry, services, and agribusiness. Financing on appropriate terms will make it possible to generate direct and indirect employment and improve the financial structure of these small companies, which have limited access to financing. FINCA’s strategy in El Salvador is to focus operations on underserved markets and groups, especially rural areas and women.
This is a category III project according to the IIC’s environmental and labor review procedure because it could produce certain effects that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria. FINCA El Salvador will be required to comply with the IIC’s List of Excluded Activities. To enable it to better understand the IIC’s requirements, FINCA El Salvador will also be required to attend the IIC’s financial intermediary environmental training seminar. Each subproject will be subject to an environmental review and must comply with national environmental and labor laws, regulations, and standards as well as IIC environmental guidelines.