PROGRAMS

LOANS TO MICROFINANCE INSTITUTIONS (MFIs)
Loans will be made to MFIs who implement their programs with an understanding that microfinance is one of the avenues to alleviate poverty. Feed the Hunger will concentrate its lending to MFIs who are targeting those with the greatest need in their communities. The Foundation will align its resources with MFIs providing creative solutions to ending hunger and enriching the lives of those in need.

GRANTS TO MFIs
Feed the Hunger also makes grants. There are populations of people who may need additional stability in their lives (shelter, a non-violent environment, etc.) before being prepared to successfully meet the conditions of a loan. MFIs may need to provide this support to these individuals to ensure their success as borrowers. The Foundation will provide grants to MFIs working with these “ultra-poor” populations.

Feed the Hunger knows that the alleviation of poverty requires more than loans; it requires social services. The Foundation will provide grants to selected MFIs working to provide health or life insurance, literacy and educational programs and scholarships, or housing.

INVESTMENT PROGRAM
Individual investors, PRIs (Program Related Investments), and other debt instruments will also provide critical funding for Feed the Hunger’s loan portfolio. Since with these instruments, principal is returned to investors at maturity, this will encourage foundations and other social investors to provide the Foundation with larger amounts of capital than they may with a grant or donation.

These investments will enable Feed the Hunger to vastly expand the size of its lending program than it would normally be able to through grants and donations alone.

Feed the Hunger is seeking to raise a total of $5 million in debt over the three years beginning in 2009 on the following terms:

Total amount:
$5,000,000 (minimum investment of $25,000)
Interest Rate:
Investors choose between 0% to 3%
Term:
2 - 4 years
Interest Payments:
Interest paid semi-annually
Principal Repayment Schedule:
To be determined
Targeted closing date:
Rolling basis during 2010, 2011 and 2012
Security:
General recourse obligations
Use:
Investment capital for microfinance loan fund