The Seed Capital project is simply the creation of a committee to promote income generation and job creation at the community level. This committee manages a small revolving loan fund that is accompanied by training and basic oversight, and helps people to use productive economic activity to provide for themselves.

Phase One: The identification of the Seed Capital Committee – At least 3 people volunteer to provide input and oversight. They cannot be loan candidates and must accept that the record for lending will be public, as the peer-pressure from the community will be one basic incentive for prompt payback of loans, and also adequate supervision of who gets the loan funds. 

Phase Two: Training and Selection of Clients – The basic training module on “The Sustainable Cycle” is offered first to prospective clients, especially to explain the development aspect of the lending program, and the desire to capitalize only viable economic enterprises. The application form is presented as part of this training, where businesses must define their margin and their prospective investment plan.

Phase Three: Disbursement and Recycling of Loan Funds – The committee reviews the application forms, and based on availability of funds, presents a recommendation for monthly disbursement. Monthly disbursement and payment records are public, used to determine the plan for lending, and also sent to donors. 

Donors can give to a Seed Capital fund in a specific community, or provide financing for individual business projects, much like a sponsorship program only for businesses. The range of the loans is defined by the local committee, but so far has been between $100-$500. If requested, specific businesses can be presented for a donor, with a description, picture, and period reports on the progress. 

In Colombia and many other developing countries, aspiring business people, out of desperation, have felt the only option for starting a business was to take loans from the “daily payment” loan sharks that charge as much as 10% per month, and collect using physical violence.  The Seed Capital project is also a way to free people from virtual slavery. Furthermore, after very strict quarantine requirements for the COVID virus, the seed capital program has become the major resource of funding for many people.