Years ago I was solicited for a donation from a corporation which gave micro-loans to people in third world countries. This organization had given out tens of thousands of loans for $100.00 or less. The positive effects on the recipients, their communities and their country were extraordinary. I was very interested in how these results could be reproduced in the United States.

Today we find that there are many non-profit, micro-loan organizations, many are still overseas although some now operate in the US. My experience with many small entrepreneurs in my investment advisory occupation has drawn me toward a personal involvement is this type of charitable endeavor. When I ask my clients “How did you get started in business?” I am amazed at how long and openly they speak! They also express a desire to assist other first time small business people. It is my belief that they would be willing to loan $1,000 - $5,000 to potential new small businesses if they could “mentor” that business.

When I made a list of what type of business in the US could be funded for these small amounts it was much longer than I had envisioned. It could be someone simply needing an oven for a home catering business, a painter in need of new ladders, or people in need of computers for home-based work. An individual with a desire to become a small business owner but at the lower end of the economic scale, the disabled, wounded soldiers returning from Iraq, former prisoners, or those coming off of welfare would be the ideal candidates for a micro-loan. Most of these first time small business people have no collateral so the demand for these loans would be great. It is notable that the payback rate of non-collateralized micro-loans is historically around 96%.

Mentoring is a very important to the success of the program. In the event that a donor is unwilling or unable to fulfill the mentoring role, it will be critical to utilize available resources such as SCORE (Service Corps of Retired Executives).

It has become my sincere desire for this to happen; therefore my associates and I have created The Mentor Fund. The Mentor Fund’s mission is to provide such uncollateralized micro-loans to the underserved. It is our goal to source both funding and mentors and match them with deserving recipients.

Sincerely,
Richard Rodman, Founder

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Our recipients will become micro-business owners experiencing individual self-sufficiency, personal growth and increased incomes. An improved economic state can often result in greater self-esteem, an enhanced family dynamic, decreased levels of crime, less domestic abuse and improved children’s school performance & marital stability. The Mentor Fund believes that financial independence along with skills growth allows participants to develop the habits and beliefs consistent with the mainstream middle-class.

The Mentor Fund believes that providing financial independence and skills growth will lessen the need for entitlement and social programs and in turn trickle up to tax relief for everyone, improve community economics, sustain poverty reduction and improve community economics. In addition, because these loans will be repaid to The Mentor Fund with interest, the organization stands to be a uniquely self-sustaining non-profit organization.

For more information contact:

Angus Dobbie
Executive Director, The Mentor Fund
(347) 449-0223
info@thementorfund.org

 

The Mentor Fund Inc. is a non-profit corporation governed by a Board of Directors
and Advisors in compliance with 501(c)3 regulations.

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