Small Loans, Big Support

HOPE International’s exclusive interview after the collapse of the Soviet Union in the 1990s,…

In the 1990s, after the collapse of the Soviet Union, Jeff Rutt, a builder from Lancaster, Pennsylvania, partnered with his church to bring containers full of clothes, food, and medical supplies to the struggling city of Zaporizhzhia, Ukraine. The region was grappling with hyperinflation and high unemployment. After several trips, a local pastor solemnly told Rutt, "What we need is not charity, but empowerment."

The supplies shipped from the United States did alleviate people’s immediate needs but also fostered dependency. Moreover, how could local businesses compete with these free goods? The well-intentioned aid ended up further weakening the local economy.

After thorough research, Jeff Rutt explored a different approach to charitable assistance: instead of providing free handouts, he began offering business funding to those in need, giving them a "hand up." This shift meant that those in need received not just material aid but also dignity and opportunities to utilize their talents and skills.

Starting with 12 small loans in Ukraine, the international HOPE organization (hereafter referred to as HOPE) was founded in 1997. Over more than two decades of growth, its reach has expanded to Central and South America, Eastern Europe, Africa, and South Asia. Its ministry now encompasses four pillars: credit, savings, entrepreneurship, and discipleship.

Jeff Rutt, the founder of HOPE, built his "love your neighbor" philosophy on the principle of empathy: help others in the way you would want to be helped. Current President Paul Greer emphasizes that people need to recognize and value what they already have, including their dreams, community relationships, and unique talents. HOPE seeks to partner with them, fostering a collaborative relationship with those they assist, working together to glorify the Lord.

The international HOPE organization has become a model for microfinance, built on four pillars: discipleship training, business training, savings groups, and microloans. It aims for holistic growth—personal, social, material, and spiritual. But is this approach business or charity? How is it sustained and operated? What impact does it bring? Below is our interview with Micah Curry, Senior Director of Microfinance Programs, conducted at HOPE's headquarters in Lancaster, Pennsylvania.

Using resources in the right place

KRC: Microfinance has been practiced for many years, and while its intentions are good, it is often misused or abused. What measures does HOPE take to ensure that loan clients use the funds for their intended purposes? What are the consequences if a client fails to repay the loan?

柯: The mission is to glorify God, with microloans serving as a tool for sharing the gospel, helping people run businesses, and providing for their needs. Within this framework, relationships are built as partnerships, rather than merely creditor-debtor relationships.The goal is not profit but a willingness to continually invest in people, which is the calling HOPE has embraced.

We provide clients with all the necessary information and maintain transparency to protect those who are vulnerable to exploitation by loan sharks. In addition to loans, we offer savings groups, providing clients with a safe place to save money. Through these small communities, participants hold each other accountable, and discipleship training is conducted within these groups.

While we strive to assess borrowers and their business plans thoroughly to prevent lending to those unable to repay, instances of non-repayment do occur. In such cases, we view it as an opportunity to demonstrate biblical principles in our interactions. Our first step is to respectfully remind clients of their commitment and responsibilities. We then collaborate with them to establish a feasible repayment schedule, providing ample opportunity for fulfillment. If a client still fails to meet their repayment obligations, we must responsibly cease financial relations and refrain from extending further loans to that individual. Nonetheless, we continue to pray for them, hoping they overcome their challenges.

KRC: As a nonprofit organization, how does HOPE utilize the interest income generated from loans?

柯: HOPE is committed to self-sufficiency and sustainable operations, not solely relying on donations. We have established mechanisms designed to provide consistent resources to those in need, unaffected by fluctuations in donation levels.

The interest income from loans is used to cover the organization's personnel expenses, ensuring the operation and growth of its programs. It also serves as loan capital, remaining in the local area to support economic development. If there is surplus, HOPE seeks the next region in need of its services, continuing to provide a helping hand to those in need.

What we aim to see is the power of recycled profits being reinvested to create lasting impact in the local community, rather than bringing the profits back to the U.S. headquarters.

Seeing the true need

KRC: How does HOPE decide where to establish its programs?

柯: We start by identifying regions with lower access to financial services or a lower percentage of individuals with bank accounts, focusing on underserved areas. We also consider where we can live out the gospel and shine light in communities that have had less exposure to it.

Another key consideration is the strength of the local church, as the ministry's savings groups operate through church partnerships. Through these partnerships, we identify mission-minded individuals who share a vision for the value of business in local development, helping to advance the ministry's impact in the area.

Since its founding, HOPE has equipped over 13,000 churches. The organization focuses on training and walking alongside local churches to empower them. As one team member put it, our role is "to make the bride of Christ look more beautiful." So, how can microloans and savings groups be used to equip and grow churches?

Before establishing a new program, we first engage in conversations with denominational leaders. For example, in Rwanda, HOPE's work began with an invitation from the Anglican Church to help them realize their vision of using savings as a ministry model. Collaboration with local churches is key to HOPE's continued growth and impact.

We ensure an equal partnership with churches, working together as co-laborers for the Kingdom and the gospel, encouraging one another along the way. Of course, we have encountered instances where churches have "reached out" asking us to donate for various purposes. HOPE clearly communicates and establishes boundaries—our ministry is focused on helping people start businesses and teaching them to save. We formalize this partnership through signed agreements with churches, ensuring both sides clearly understand their respective responsibilities.

KRC: Running a business is never easy, especially in the economically challenging regions that HOPE serves. What kind of support does HOPE provide to its loan clients in this regard?

柯: Yes, in developing countries, even accessing basic infrastructure like reliable water, electricity, and transportation can be a significant challenge. What we do is provide business training rooted in biblical principles, even before granting a loan. This training helps entrepreneurs understand HOPE as an organization, the purpose of loans, and what it means to run a business well. The training focuses on principles rather than specific instructions—we don’t tell clients what products to sell or where to set up their business. Instead, we encourage them to develop their own ideas about managing their businesses, fostering a sense of ownership.

The training materials cover topics such as: what constitutes good customer service; how to make your product stand out in the local market; and how to separate business and personal expenses. HOPE also recognizes the value and impact of peer influence. We gather clients who have shown outstanding development in their respective fields to share their experiences—how to treat employees well, how to handle taxes, and how to turn business operations into a form of service for God's Kingdom.

HOPE has a presence in both cities and rural areas, believing that small businesses can create job opportunities. We encourage our clients to observe which types of businesses are thriving in their communities. Clients also help one another—some are in seafood wholesale, others in retail. As relationships are built among them, they can collaborate in their operations and complement each other effectively.

People are the greatest resource.

KRC: The ministry has been developing for over twenty years—what lessons have been learned? What challenges are currently being faced?

柯: There are many challenges, yet the resilience, creativity, and generosity toward their communities that we witness from our clients give us great encouragement. HOPE has come this far because we’ve found the right coworkers—whether in the leadership team at our Lancaster headquarters or the loan officers working directly with clients in remote areas. Most importantly, they share HOPE’s vision and mission, and carry a deep passion to serve those with fewer resources.

In addition, as a global organization, risk and quality management are equally important. We must ensure that, in our efforts to expand, we do not neglect our Christ-centered core mission.

Over the past few years, due to lockdowns and city closures caused by the pandemic, many clients suffered financial losses. We accompanied and supported them with flexibility and creativity.

The current high inflation is affecting daily expenses. We have responded by increasing credit limits, enabling clients to purchase materials and equipment, or by helping them find alternative suppliers to make their product pricing more competitive.

Armed conflicts and political instability have also brought significant challenges. After the outbreak of the Russia-Ukraine war, we witnessed the resilience and perseverance of the Ukrainian people. We continued lending to help keep business activities going. Haiti is another country plagued by turmoil. HOPE’s savings groups, in partnership with local churches, work to support the people there.

KRC: Please share a few memorable stories..

Ko: In Nyiraminani Donathe, Rwanda, she first obtained a loan of 150,000 Rwandan francs (about 150 USD) from HOPE in 2011 and opened a small grocery store selling salt, rice, and beans on the street. Now, in addition to wholesaling daily necessities like rice, oil, and sugar, she also runs a restaurant and owns six rental houses. These businesses not only sustain her family’s livelihood but also employ seven workers. During the pandemic, she provided transportation and food to the community as a way of giving back.

Jovelee Maala from the Philippines came to HOPE’s partner, the Center for Community Transformation (CCT), where she met the Lord. Since then, she started learning to save with just $1.81 per week and received her first loan of $72, which she used to expand her scrap business and open multiple branches.

The waste processing center that supplied Jovelee's goods was forced to close due to a landslide, which led her to shut down one of her stores. During the pandemic, all her businesses came to a standstill. However, with the business knowledge she gained from CCT, she sought new opportunities and started a milk tea business. Today, she can send her children to school without financial burden, care for her family, provide employment for over a hundred people, and assist the church in building a chapel and outreach work.

She said that HOPE and CCT brought her financial success, but the treasure of her life is Jesus Christ. In Ukraine, Artem used a loan to open a restaurant. After the Russia-Ukraine war, he is committed to serving displaced people. Currently, about half of his 24 employees are people who had to leave their homes because of the war.

These individuals were originally just small business owners, yet they were willing to give back to their communities and serve the Kingdom, which has been a great inspiration to me.

KRC: How can Christians and churches invest in charitable organizations like HOPE?

柯: HOPE has designed several programs to help individual Christians or churches understand and experience the circumstances of loan clients (please refer to the website https://www.hopeinternational.org/take-actionIf God moves you, besides giving financially, you can also serve the community with your talents.

Microloans convey the concept of stewardship in a unique way, combining the Great Commission to make disciples of all nations with the Greatest Commandments to love God and love our neighbors. What HOPE does is both mercy ministry and missions—it shares the truth while lending. We believe that the most effective messengers of the gospel are often local people; their transformed lives are the best testimony. We hope readers will consider getting involved to expand the impact of their giving.

From the development of the international HOPE organization and the stories of its clients, we see clear evidence that people are the greatest resource. When individuals use the gifts and creativity God has given them, they can make a meaningful impact on others, on their communities, and for the Kingdom.

To learn more and get involved, please visit the website. https://www.hopeinternational.org/.

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