I want to tell you the story of a man and his family.

(L-R: Fernando, Cliotilda, Lucia, and Cristina.)
I met Fernando Arteaga about a month ago, he is a street guard in my neighborhood but I hadn’t met him till more recently as he is not on a street I normally travel. He found out I was helping another guard with basic English acquisition and asked if I could do the same for him. Of course! Thus started our friendship. As time progressed I came to learn he had been born in a northern province, in the city of Ibarra, but had spent most of his life living and working construction in communities near Quito. He changed to working as a guard when his knees became too bad to continue in his previous profession. In his current job he works 24 hours straight and then has 24 off with over an hour each way for his arduous commute. I also discovered that he has a small side business selling nutritional supplements to local people but can’t really expand this endeavor due to a lack of capital. Just last week Fernando invited me to come visit him and his family and this past Saturday ended up working well for both of us.
Fernando wasn’t kidding about his commute! It took well over an hour to get to his house. I was introduced to his family, his wife of fourteen years Cliotilda, and his two daughters Lucia and Cristina. Lucia, the elder at age 17 (Cliotilda’s child from a previous relationship, adopted by Fernando), informed me her dream is to be a doctor. She also told me she had to stop school at age 10 to help out at home. Then there was vivacious Cristina, 8 years old, still in school and dreaming to be an engineer one day. A family friend, Monica, was also visiting that day with her young son Dario. We all took a neighborhood tour where along the way we bought fish for lunch and a few other items at the local market. Cliotilda prepared a delicious lunch of batter-fried fish with rice and a particularly tasty aji.
Somewhere in the visit the girls got more comfortable with me, as well as fascinated with my digital camera (I don’t think they’d ever seen one up close), and we ended up taking a good number of pictures, and after every picture they would all crowd around to see the picture on the tiny display screen!

(Having fun with the camera.)

(Their house, rented for $100 a month. L-R: Cliotilda, Lucia, Cristina, and friends Monica, and Dario)

(Cliotilda really wanted a picture of herself with her bible; over lunch we had a long talk about how her faith is an important part of what keeps her going.)

(Me with Lucia and Cristina.)

(Monica and Dario.)

(Cliotilda in her kitchen proudly displaying her delicious lunch!)
I left with Monica, after a 6-hour visit, as she had to go to work and I wasn’t quite sure which bus I needed to take. It turns out she is a nurse in a local clinic and this common interest of health provided an instant bond and enlightening conversation. The whole visit had been one of those random adventures that turns into an incredibly powerful, humbling, and informative encounter; I feel very grateful for all I experienced that day.
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Upon reflection of all I had come to know about Fernando and his family my first thought was, what a potentially great candidate for a micro loan! A micro loan is a loan, often without interest, given in quantities small enough that most banks refuse to service the people who need them. These loans are used to jumpstart businesses and give people in poverty a chance to work themselves out of it, versus pure charity, which often just creates dependency. I asked Fernando if he was interested and the response was an enthusiastic yes! I immediately contacted people at Kiva.org (an internet based Micro Finance Institution – MFI) and through them got a hold of a MFI called Mifex that is based in Guayaquil. I was super pumped to tell Fernando until I got the news that Mifex currently restricts their business solely to Guayaquil and nearby coastal areas; they do not work in Quito and didn’t know of anyone who does.
That was it, I had tried but there just didn’t seem to be anywhere else to go… Yet, it didn’t feel right just letting it all die on that one email. I don’t know much about economics but what if I could come up with the money through family and friends? I knew he couldn’t need too much; this is Ecuador after all! From MFI research I had discovered the success or failure of the whole micro loaning process rests on the shoulders of individual case workers who travel to applicants houses, work, wherever, get to know family, friends, bosses, landlords, etc. all to predict whether the applicant would be likely to carry through on their monthly repayments. This is more or less what I had already done!
I decided to get more information I initially asked him to write me out a plan of how he would use funds should he receive them, but he had not done so when I checked in a while later. I was a bit peeved, did he want help or not? The irritation lasted until he told me his “writing wasn’t so good” and could he dictate it to me? I felt a little stupid for thinking he had just blown me off.
The nutritional/health products that Fernando sells range from powdered drink-mixes chock full of vitamins and minerals to a special shampoo used to revitalize ones scalp and hair. He buys what he can and then sells it at a slightly higher price, an example being his “Biocross” nutritional drink mix, which he buys at $15 and sells at $20. However, he never has enough capital to expand his business through buying in larger quantities, when almost all his combined earnings are going to rent, food, and small necessities. He currently sells out quickly whenever he can buy new product. For example, during the last two weeks he sold all but one of his items (26/27 items sold). He has told me his dreams for the future are to be his own boss, to one day own his own house, and to give his girls a better life than he’s had. Fernando believes a small loan can give him the boost he needs to reach his dreams.
I next started talking to people who know Fernando but aren’t family. Monica fit the bill perfectly and from our first meeting I felt she was the kind of person who would tell me what she really thought. She is also very levelheaded and thus I decided her opinion of Fernando would be a valuable one to have. She told me he is a devoted father, neither smokes nor drinks (o so common among the destitute), a devote Christian, and that in her mind, after years of knowing first Cliotilda and then Fernando, that the payments would be made in full and on time.
I’ll be honest, even after a visit where I go to know his whole family and was able to see them all interact as well as hear testimonies from those who know him – all pluses for Fernando, I’m still not 100% sure he would repay. But, you know what, I think he deserves a chance. We have a choice each day, do we believe people as a whole inherently desire to do the right thing and just need a chance, or is everyone just looking out for numero uno no matter the consequences? The worst that happens is that he can’t or won’t repay, which with the amount of money under consideration amounts to a drop in the bucket and the money still goes to a family that can use it. The best? A man and his family’s lives are kick-started to provide a better future for them all.
Lucky for Fernando a generous friend of mine thinks the same and in a few days I intend to the present Fernando with a contract to sign and his loan!