NESsT Lirio Fund: Empowering Brazilian Entrepreneurs for Change
A Transformative Push: NESsT Lirio Fund Expands to Brazil
As part of its ongoing dedication to enhancing livelihoods in Latin America, the NESsT Lirio Fund has decided to expand its operations into Brazil. This move aims to empower small and medium-sized enterprises that create dignified job opportunities while actively contributing to environmental conservation.
Supporting Sustainable Enterprises
Launched in 2018, the NESsT Lirio Fund seeks to generate quality jobs for individuals from marginalized backgrounds across Latin America. With a particular focus on the Andean and Amazon regions, the fund aims to address underlying causes of poverty while promoting climate action. The initiative currently supports fourteen enterprises across Colombia and Peru and is now accepting applications from socially conscious organizations in Brazil.
NESsT's Legacy in Brazil
NESsT has been active in Brazil for over a decade, successfully aiding high-impact enterprises through its acceleration programs. This has resulted in the creation of more than 40,000 job opportunities, positively affecting over 500,000 lives. With this legacy, the NESsT Lirio Fund's expansion holds significant promise for the region.
Bridging Gaps for Sustainable Development
Mariana Lima, the Investment Officer for the Lirio Fund in Brazil, acknowledged the ongoing efforts and the need for further growth in the region. She noted that traditional funding sources often overlook the significant potential within communities possessing deep-rooted knowledge of the rainforest. The NESsT Lirio Fund aims to bridge this funding gap by offering attractive loan terms and technical assistance to underserved enterprises.
Loan Structures Tailored for Success
The NESsT Lirio Fund offers loan amounts ranging from $100,000 to $500,000 USD, customized to meet the unique needs of each applicant. These loans come with favorable terms, including lower interest rates, minimal collateral requirements, and extended repayment periods. Moreover, the fund provides valuable business assistance to ensure these enterprises not only fulfill their loan obligations but also thrive in the long term.
Critical Timing for Economic Support
The expansion of the NESsT Lirio Fund comes at a crucial time when Brazil is grappling with escalating economic and environmental challenges, notably within its Amazon region. With an emphasis on an impact-first strategy, NESsT undertakes a comprehensive due diligence process, utilizing an impact framework to assess the efficiency of their investments. Each year, they present investors with detailed metrics focusing on job creation, earnings, and environmental conservation.
Targeting Marginalized Workers
The fund specifically targets rural and marginalized workers often trapped in the informal economy, with incomes below the minimum wage. The goal is to increase their earnings by 25% to 50% while improving their overall livelihoods.
A Proven Commitment to Impact
Chad Sachs, the Chief Investment Officer of NESsT, emphasized the organization's successful track record of identifying robust investments through meticulous due diligence and impact measurement practices. The locally-based loan managers' profound market expertise further strengthens the fund's approach, enabling them to deliver substantial, sustainable returns for investors.
Strategic Investment for Growth
The NESsT Lirio Fund targets businesses involved in sustainable agriculture, eco-tourism, and inclusive employment. To qualify for funding, enterprises must exhibit a minimum of $200,000 in annual sales and two years of operational history. Preference is given to those adhering to organic, Fair Trade, or Rainforest Alliance standards, ensuring that investments foster sustainability and community development.
Empowering Social Enterprises
As countries respond to pressing social and environmental issues, partnering with innovative enterprises becomes vital. Kirsten Dueck, CEO of NESsT, highlighted how tailored support for small and medium businesses can drive impactful change in Brazil, particularly within a country characterized by stark inequalities. Her vision is to expand sustainable practices across the region while contributing significantly to the preservation of vital planetary resources.
Enterprises aimed at improving livelihoods and supporting environmental conservation efforts in Brazil are encouraged to apply to the NESsT Lirio Fund.
About NESsT
NESsT is dedicated to investing in enterprises that create quality jobs for underserved communities while promoting environmental sustainability. Since its inception in 1997, NESsT has committed over $37 million and has equipped more than 36,000 entrepreneurs across 50 countries with essential support. Through its acceleration efforts, NESsT has bolstered over 260 enterprises, resulting in the creation of more than 112,000 formal jobs, thereby transforming the lives of around 1.7 million people in marginalized communities worldwide.
Frequently Asked Questions
What is the NESsT Lirio Fund?
The NESsT Lirio Fund aims to enhance livelihoods and promote sustainable development in Latin America by investing in small and medium-sized enterprises.
How does the fund support businesses?
The fund offers loans between $100,000 and $500,000 along with tailored business assistance to ensure success and sustainability.
Who can apply for the NESsT Lirio Fund?
Businesses with a minimum of $200,000 in annual sales and two years of operational history, focusing on sustainability, can apply.
What types of enterprises does the fund target?
The fund specifically seeks enterprises in sectors like sustainable agriculture, eco-tourism, and inclusive employment that promote positive social and environmental impacts.
What is the broader goal of the NESsT Lirio Fund?
The overarching aim is to alleviate poverty, boost economic growth, and foster sustainable development in marginalized communities across Latin America.
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