Social & Environmental Loans

Social and environmental loans support impact businesses with capital available on time for its operation.
Advantages
  • Below-market interest rates
  • Flexible conditions
  • SITAWI’s expertise

emprestimo

The Social & Environmental Loan is a SITAWI’s original product and has permitted us to offer more than R$ 3 million in loans at below-market interest rate in the amount of to 15 social organizations and impact businesses in diverse fields, including a social organization focusing on public health in São Paulo, a territorial development institute in Para, a impact business researching communities in Rio de Janeiro, an agricultural cooperative from Paraná and an environmental business focusing on sustainable building in the state of São Paulo.

SITAWI seeks out projects able to prove their positive social or environmental impact anywhere in Brazil and run either as for-profit or non-profit organizations. In order to be approved for a loan, the candidate must have the means to prove the social or environmental impact of the project and show ability to repay a loan, ethical commitment and management skills.

At SITAWI, we run two credit lines with similar conditions, but with differences in terms of business type, use of capital and scale.

Social & Environmental Loan Fund
Family C Fund
Loans for working capital for amounts from R$50,000 up to R$70,000. SITAWI approves loans based on an evaluation by a committee of our peers. Generally, there is a fee for the evaluation of the business plan. The loan repayment is between 6 months and 3 yearsLoan for larger amounts with an aim for significant long-term change through the expansion of a project or organization. The fund focuses on outstanding projects for which our capital can make a major difference. Consequently, the repayment period is often longer.

In both cases there is a wide level of flexibility in terms, but all loans are made at the SELIC rate for periods over 6 months. SITAWI evaluates all loan applications according to a financial and socio-environmental analysis. We aim to complete this process as soon as possible, but our process takes an average of 3 months.

Emprestimos_socioambientais

Empréstimos Socioambientais 

CIESemprestimo-cies

CIES’s mission is to bring specialized health care to every community in a humanized and high-tech means through mobile health units.

SITAWI has provided the project 3 loans. The first one in 2011 was a R$ 200,000 working capital loan to increase the number of employees and restore a mobile health unit. This project directly benefited 15,840 in 2012.

For the second loan for R$ 50,000, SITAWI supported the establishment of Hora Certa, a program implemented by CIES and the Municipality of São Paulo aiming to create mobile health units in 3 regions of city to provide local communities with a number of medical exams, such as ultrasound, colonoscopy and endoscopy. As a result, CIES was able to increase its capacity and by 2014 could perform around 25,000 exams a month.

With the most recent loan in the end of 2014, CIES will be able to purchase a semitrailer truck for outdoor interventions and build a new facility in Vila Nova Manchester, in the east region of São Paulo. which will function a surgery, clinic, training center for nurses and supply new spaces for supplies, pharmacy and medical records. The goal is to provide surgery services to the region’s residents and enhance CIES’ ongoing work.

The Problem:

Lack of capital to invest in health facilities as part of the expansion program of Hora Certa and absence of working capital to ease the day-to-day management of a high-capacity program.

Solution:

R$ 1 million loan.

Social impact:

Through Hora Cera program, CIES aims to reach 390,000 patients, providing a wide range of medical exams, surgeries and training 19500 health agents (physicians and nurses) in 2015. Besides, the new semitrailer truck will be able to reach 250 patients per day.

Coperjunhoemprestimo-coper

The co-operative Coperativa Agroindustrial 8 de Junho (Coperjunho) began in a community kitchen headed by 4 women in 1997. In 2005 the group began to organize their activities and, in addition to growing food for domestic consumption, it began to deliver food to public schools through the Food Acquisition Program – PAA.

Currently, Coperjunho works with institutional projects (government programs), events, contracts with the Federal University of Fronteira Sul and a private school, in addition to sales at local markets in the region.

The problem:

Coperjunho has problems with working capital, given that the government programs pay 60 to 90 days after delivery and the co-operatives needs to meet payroll as well as pay farmers within 30 days.

The solution:

A SITAWI social-environmental loan for R$ 75,000 to provide working capital to meet payroll, farmer payments and restructure debt.

Furthermore, the entrepreneurs can benefit from regular meetings with SITAWI to deal with the challenges of management control and strategic planning.

The impact:

Coperjunho’s social and environmental impact occurs in two ways: in generating income for the rural settlers and producing organics as a large part of its produce. In terms of income generation for the settlers, the impact is direct. Small-scale farmers supply the cooperative, focusing on two main products: root and leaf vegetables.

Currently, this initiative provides 30 direct jobs and benefits more than 40 farming families indirectly from the sale of organic produce.

Ecoserviceempestimo-eco

Ecoservice is a B Corp that aims to reduce the environmental impact and carbon emissions of the construction industry in Sorocaba (São Paulo) and surroundings. The company sells sustainable technologies to its customers to reduce the consumption of drinking water and electricity or gas through solar heating systems, green roofing and the reuse of rainwater.

The problem:

Lack of working capital with terms suitable for the business’s phase of development.

The solution:

A SITAWI social-environmental loan for R$ 60,000 to decrease the company’s dependency on commercial loans and allow more working capital for an expansion and in the environmental impact of their products.

The impact:

Through its sales, EcoService reduces environmental impacts of the construction industry. To date, there has been a decrease of 507 metric tons of CO2, 8480 m³ of water per year and a planted site of about 13372 m². http://www.a3s-ecoservice.com.br/

Instituto Peabiruemprestimo-instituto

Founded in 1998 and based in Belém, Pará, the Instituto Peabiru is a Civil Society Organization in the Public Interest (OSCIP), devoted to Eastern Amazonia – Pará, Amapá e Maranhão. Its mission is to add value to cultural and environmental diversity and support the social development of Amazonia.

The solution:

Lack of working capital for expenditure on projects, given that their agreements with funders do not permit pre-disbursement of funds for operations, working only under reimbursement scheme.

A solução:

SITAWI social loan in the amount of R$ 55,000 to cut down on pre-financing costs and increase both the organization’s financial sustainability and project effectiveness. The organization will raise the level of support provided to 60 families working with native bees in the Island of Marajó.

The impact:

The ATER-Marajó Project is a 30-month program to assist 676 families in two Brazilian municipalities, Ponta de Pedras and Cachoeira do Arari, on the Island of Marajó- with extremely low municipal Human Development Indices. With the loan provided by SITAWI, the organization was able, on an ongoing basis, to carry out socioeconomic diagnosis, elaborate plans to participative social organization, develop agricultural activities and sell local products, including honey from native bees. http://peabiru.org.br/

Lar da Bênção Divinaemprestimo-lar

Lar da Bênção Divina is a non-governmental organization established in 1956 that provides support to vulnerable communities around the Congonhas Airport, in São Paulo. Currently, it helps more than 300 families in need from the neighborhoods Coréia, Vila Inglesa e Vila Santa Catarina through 2 main projects: the Early Childhood Center (CEI) and the Child and Adolescent Centre (CCA).

Its business model is based on educational and cultural activities and the organization has several sources, including partnerships with the public sector and charitable events, while the organization’s costs are mainly from personnel and services.

The problem:

Its financial situation is volatile, given that it is highly dependent upon donations São Paulo Municipality stopped being its main revenue source in 2012, instead being the Regional Education Board of Santo Amaro instead. The rest of its revenue came from various donations that in 2014 made up 38% of its funding. However, the value of these donations has significantly decreased since 2012. Besides, the access to capital is restricted to lines of credit for individuals – directors of the organization and partners of Santa Fé Portfolios – an asset manager associated to Lar.

The solution:

Lar da Bênção Divina came to SITAWI seeking a bridge loan to support its operations for four months until its annual fundraising lunch, an event that provides about 20% of the organization’s annual income. SITAWI granted the organization a social loan for R$ 75,000 in August 2015.

The impact:

The social impact of Lar occurs through its education program, whereby children, young adults and vulnerable populations in the surrounding of Congonhas Airport are introduced to music, culture and arts. By 2015, more than 2,3 million soups had been served, 2,789 children supported, 4,900 families assisted, with an average of 261 people a year.
www.bencaodivina.org.b

Mobile Metrixemprestimo-mobile

Mobile Metrix is a non-profit organization founded 2010 that aims to gather data about populations at the base of the pyramid. They give voice to “invisible” people who live in segregated communities not included in traditional surveys and often forgotten in terms of employment, education and health.

The problem:

Mobile Metrix signed a contract with a multinational consumer goods company to conduct a health and hygiene survey in communities in Rio de Janeiro and Recife. Given difficulties in the cash flow, it needed adequate funding to conduct the survey prior to its full funding arriving.

The solution:

SITAWI loaned R$ 100,000 to facilitate the project’s implementation.

Social impact:

The loan smoothed the implementation of the survey, employing young people from the communities to improve their employability, drawing attention to community health and hygiene needs and providing training in these areas for the local residents. http://www.mobilemetrix.org

Cases of Success


The mission of the Integration Centre for Education and Health (CIES) is to bring specialized health care to every community in a humanized and high-tech way through their mobile health units.

CIES

The mission of the Integration Centre for Education and Health (CIES) is to bring specialized health care to every community in a humanized and high-tech way through their mobile health units.

SITAWI has provided the project 3 loans. The first one was a R$ 200,000 loan borrowed in 2011 for working capital and destined to increase the number of employees and restore a mobile health unit. This project directly benefited 15,840 in 2012.

For the second loan, amounting R$ 50,000, SITAWI supported the establishment of Hora Certa, a program implemented by CIES and the city hall of São Paulo aiming to create mobile health unities in 3 city regions in order to provide local communities with several medical exams, such as ultrasound, colonoscopy and endoscopy. As a result, CIES was able to increase its caseload and could even perform around 25,000 medical exams per month in 2014.

With the latest loan provided by SITAWI in the end of 2014, CIES will be able to purchase a semitrailer truck for outdoor events and build a new facility in Vila Nova Manchester, in the East region of São Paulo. where it will function a surgery clinic, a training center for nurses and new rooms for warehouse, pharmacy and medical records. The goal is to provide surgery services to the locals and consolidate CIES’ ongoing work.

The problem:

Lack of capital to invest in health facilities as part of the expansion program of Hora Certa and absence of working capital to ease the general procedures of such high-level caseload program.

The Solution:

R$ 1 million loan.

The Social:

Through Hora Cera program, CIES aims to reach 390,000 patients, providing a wide range of medical exams, surgeries and training 19500 health agents (physicians and nurses) in 2015. Besides, the new semitrailer truck will be able to reach 250 patients per day.

The co-op Coperativa Agroindustrial 8 de Junho (Coperjunho) began in a community kitchen headed by 4 women in 1997. However, only in 2005 the group started a process of organization of their activities and, in addition to producing for domestic consumption, it began to deliver products to public schools through the Food Acquisition Program – PAA.

Coperjunho

The co-op Coperativa Agroindustrial 8 de Junho (Coperjunho) began in a community kitchen headed by 4 women in 1997. However, only in 2005 the group started a process of organization of their activities and, in addition to producing for domestic consumption, it began to deliver products to public schools through the Food Acquisition Program – PAA.

Currently, Coperjunho works with institutional projects (government programs), events, contracts with the Federal University of The South Border and a private school, in addition to products sales in local markets and retails.

The problem:

Coperjunho has problems with working capital, given that the government programs pay 60-90 days after the delivery and the co-op needs to meet payroll as well as pay farmers in 30 days at most.

The solution:

A SITAWI social-environmental loan in the amount of R$ 75,000 in order to provide working capital to meet the payroll, the farmers’ demands and restructure debt.

Furthermore, entrepreneurs can benefit from regular meetings with the SITAWI mainly to deal with the difficulty of management control and strategic planning.

The impact:

The social-environmental impact of Coperjunho occurs in two ways: generating income for the settlers and yielding organically most of the cooperative products. Regarding income generation for the settlers, the impact is direct. Small-scale farmers supply the cooperative, focusing on two main product lines: tubers and vegetables.

Currently, this initiative creates about 30 direct jobs and keep more than 40 associated farming families that indirectly benefit from the sale of organic production.

Ecoservice is a System B company that aims to reduce environmental impacts and carbon emissions in the construction industry in Sorocaba (São Paulo) and surroundings.The company provides sustainable technologies to its customers in order to reduce the consumption of potable water and electricity or gas through solar heating systems, green roofing and rainwater for reuse.

Ecoservice

Ecoservice is a System B company that aims to reduce environmental impacts and carbon emissions in the construction industry in Sorocaba (São Paulo) and surroundings.The company provides sustainable technologies to its customers in order to reduce the consumption of potable water and electricity or gas through solar heating systems, green roofing and rainwater for reuse.

The problem:

Lack of working capital with suitable terms in accordance with the business phase.

The solution:

A SITAWI social-environmental loan in the amount of R$ 60,000 in order to decrease the company’s dependency on loans from commercial banks and grant more working capital to be invested in their expansion and in the environmental impact of their products.

The impact:

Through the sale of its products, EcoService reduces environmental impacts of the construction industry. Up to now, there has been a decrease of 507 tons of CO2, 8480 m³ of water per year and a planted site of about 13372 m².

Lar da Bênção Divina is a non-governmental organization established in 1956 that provides support to vulnerable communities around the Congonhas Airport, in São Paulo.

Home of Divine Blessing

Lar da Bênção Divina is a non-governmental organization established in 1956 that provides support to vulnerable communities around the Congonhas Airport, in São Paulo.

Currently, it aids more than 300 families in need from the neighborhoods Coréia, Vila Inglesa e Vila Santa Catarina through 2 main projects: the Early Childhood Center (CEI) and the Child and Adolescent Centre (CCA).

Its business model is based on educational and cultural activities and the revenue to keep the organization comes from a number of sources, such as its partnership with the public sector and charitable events, while the organization’s expenditure sources are mainly personnel expenses and third-party services.

The problem:

Its financial situation is volatile, given that it is highly dependent upon donations at large.

São Paulo City Hall was no longer its main revenue source (through the projects CEI and CCA) in 2012, but the Regional Board of Education of Santo Amaro instead. The rest of its revenue came from several donations that in 2014 reaching 38% of the complete revenue. However, the amount of donations and their overall value have significantly decreased from 2012 up to now. Besides, the access to capital is restricted to lines of credit for natural persons – directors of Lar and partners of Santa Fé Portfolios – asset manager associated to Lar.

The solution:

Lar da Bênção Divina came to SITAWI seeking a bridge loan in order to aid its operations until October, when it is hosted the annual fundraising dinner, an event that is known for providing about 20% of the annual revenue of the organization. SITAWI granted the organization a social loan in the amount of R$ 75,000 in August 2015.

The impact:

The social impact of Lar occurs by means of education when children, young adults and vulnerable populations in the surrounding of Congonhas Airport get introduced to music, culture and arts.

Until 2015, more than 2,3 million soups were served, 2,789 children supported, 4,900 families assisted and an average of 261 assistance session per year.

Mobile Metrix is a non-profit organization founded 2010 that aims to gather data about the base of the pyramid population. This way, they trace “invisible” people who live in segregated communities that are not taken into account on traditional surveys, remaining forgotten in the fields of employment, education and health.

Mobile Metrix

Mobile Metrix is a non-profit organization founded 2010 that aims to gather data about the base of the pyramid population. This way, they trace “invisible” people who live in segregated communities that are not taken into account on traditional surveys, remaining forgotten in the fields of employment, education and health.

The problem:

Mobile Metrix signed a contract with a multinational consumer goods company to conduct a health and hygiene survey in communities in Rio de Janeiro and Recife. Given some difficulties in the cash flow, it was lacking adequate resources to conduct the survey, whereas the payment was being arranged for the organization.

The solution:

SITAWI loaned R$ 100,000 facilitating the implementation of the project.

The impact:

The loan smoothed the survey implementation, thus, it improved the employability of young people living in the communities, drew attention to community needs in health and hygiene and provided training in such areas for the locals.

Founded in 1998 and headquartered in Belém, Pará, the Peabiru Institute is a Civil Society Organization of Public Interest (OSCIP), devoted to Eastern Amazon – Pará, Amapá e Maranhão.

Peabiru Institute

Founded in 1998 and headquartered in Belém, Pará, the Peabiru Institute is a Civil Society Organization of Public Interest (OSCIP), devoted to Eastern Amazon – Pará, Amapá e Maranhão.

Its mission is to add value to cultural and environmental diversity and support social development processes in Amazon.

The problem:

Lack of working capital for expenditure on projects, given that their agreement with INCRA does not permit any anticipation of funds for operations, working under reimbursement scheme only.

The solution:

SITAWI social loan in the amount of R$ 55,000 in order to cut down on pre-financing costs and increase both the organization’s financial sustainability and project effectiveness.

This way, the organization will raise the support level provided to 60 families that handle native bees in the Island of Marajó.

The impact:

The ATER-Marajó Project is a 30-month program to assists 676 families in two Brazilian cities – Ponta de Pedras and Cachoeira do Arari, in the Island of Marajó- with extremely low IDHM (a specific HDI used to measure the human development levels in Brazilian cities).

With the loan provided by SITAWI, the organization was able to resume the project, carrying out socioeconomic diagnosis, elaborating plans to participative social organization, performing productive activities and selling local products derived from meliponiculture – honey production from native bees.