U.S. approves $10 million loan for Honduran small businesses

The United States has approved a $10 million loan for MiCrédito, a financial institution in Honduras, in a project aimed at expanding credit for micro, small and medium-sized businesses.

At least 50% of the funds will support trade between the United States and Honduras. The money will finance purchases of U.S. goods and services and help strengthen supply chains, U.S. authorities told EFE.

The project was formalized at a signing ceremony in Washington involving Caroline Vik, head of policy at the U.S. International Development Finance Corporation, and Verónica Herrera, MiCrédito’s regional executive director. “This project reflects the strength of the alliance between the United States and Honduras by supporting entrepreneurs, deepening trade ties and strengthening supply chains,” Vik told EFE.

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This project reflects the strength of the alliance between the United States and Honduras by supporting entrepreneurs, deepening trade ties and strengthening supply chains.

Vik said the United States was preparing a broad cooperation plan for the region, with energy, agriculture and health serving as cross-cutting pillars. Honduras’ finance minister, Emilio Hernández Hércules, Central Bank President Roberto Lagos and Trade Representative Melvin Redondo attended the ceremony.

Lagos described such agreements as relief for Honduras as El Niño has affected the country. “Employment generation must definitely be pursued in partnership with the private sector to make community development more effective and subsequently ease the effects of any crisis caused by drought,” he said.

MiCrédito was founded in Nicaragua in 2004 and began operating in Honduras in 2023 after acquiring all shares in Financiera Finca Honduras. It now has 26 branches and more than 15,200 borrowers, mainly micro and small business owners in commerce, services and agriculture. The deal also comes as Washington strengthens ties with the government of Honduran President Nasry “Tito” Asfura. The DFC said the financing line would expand credit access for thousands of Honduran businesses that buy agricultural inputs and manufactured goods.

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Employment generation must definitely be pursued in partnership with the private sector to make community development more effective and subsequently ease the effects of any crisis caused by drought.