1.What kind of projects does the Program fund?
Through grants and/or loans, the Program will encourage projects that promote Access to financial services for microentrepreneurs and low-income people in Latin American and the caribbean through the application of technology. Projects must be innovative and long-term sustainable and potentially replicable in other sectors and / or countries.
2.What kind of organizations does the Program fund?
The program can provide resources to public or private organizations such as:
- Providers of Financial Services of various types including for-profit, non-profit, regulated or unregulated credit unions, microfinance institutions, agricultural cooperatives that provide financial services, banks, insurance companies, and NGOs
- Networks, associations or federations of financial institutions
- Private credit bureaus and credit information service providers
- Providers of electronic payment platforms
- Research centers / Universities
- Partnerships among the organizations listed above
3.How I can apply for funding?
If your idea is consistent with the priorities of the Program, visit the “Enter an Idea” page and input your idea electronically using the idea form.
4.Is there a deadline for submitting applications?
The deadline to submit ideas is July 15th, 2011.
5.What are the minimum and maximum amounts for the grants?
The program can provide grants, loans and/or technical assistance up to US$ 300,000, according to the logic of the project, the envisioned cost-benefit relationship and approval by the funder. The organization or organizations that apply must contribute or show co-financing of at least 30% of project cost. If loan funding is required financing conditions will be established based on the financial viability of the applicant organization.
6.How much must my organization contribute as counterpart funding?
Each institution is required to co-fund between 30% and 50% of the total amount of the Project proposed. The percentages depend on the size and level of the development of the country in which the project would be implemented.
7.What rules apply for the counterpart funding?
a.At least half of the counterpart contribution must be made in cash to cover Project implementation.
b.The other half may consist of non monetary contributions including the use of offices or conference rooms or use of equipment and time spent by employees of the institution for specific project activities.
c.The payment for services rendered to the project is not considered counterpart contribution, although institutions should consider the cost of services as a key element in ensuring the long-term sustainability of the project.
8.Can my organization request assistance from other organizations to meet counterpart funding requirements?
Yes. The executing agencies can obtain funding from various sources, including national and international government agencies, NGOs, foundations and bilateral and multilateral donors.
9.Can my organization simultaneously obtain funds from the Program while also receiving funds from other sources for the same project?
Yes. But this Information needs to be detailed in the Idea form.
10.Can the Program finance infrastructure costs?
No. The program does not fund any type of physical infrastructure including construction or purchase of property, buildings, offices or permanent equipment such as heavy machinery.
11.What kind of project costs can be covered with funding from the program?
Program resources may be used for:
a.Consulting services for companies, agencies, institutions or individuals from IDB member countries.
b.Seminars and/or workshops.
c.Trainers, lecturers or facilitators.
d.Development of training materials.
e.Acquisition of licenses, computer programming and computer equipment on a smaller scale.
Although the program can cover the purchase of minor equipment such as POS terminals, laptops, printers and scanners, these costs should represent a small percentage (30% or less) of total project cost and be within the limits negotiated during the design phase and as stipulated in the agreement.
12.What project costs cannot be covered by the financing of the program?
The resources of the program may not be used for:
a.Investments in physical infrastructure (construction, land acquisition/ property or permanent equipment such as heavy machinery).
b.Direct lending to the institution.
c.Repayment of debt.
d.Purchase of raw materials (agricultural and industrial).
e.Purchase of a motor vehicle.
f.Salaries of employees of the institution.
g.Consultants who collaborate in the design of the Project generally cannot be financed with program funds for Project implementation.
h.Operating expenses, which can be included as part of the counterpart contribution.
i.In general, the resources of the program cannot be used to cover sales or import taxes associated with the acquisition of goods or services contracts, unless the executing agency is a nonprofit agency or organization government.
j.In general, the resources of the program cannot be used to cover expenses incurred prior approval of final Project document.
13.Does the program cover the salaries of the institution?
No. The resources of the Program cannot be used to pay regular expenses such as salaries of staff of the institution.
14.Is it possible to recruit the assistance of consultants on projects using resources from the program?
Yes. The resources of the program can cover the payment of outside consulting services to consulting firms, agencies, institutions or individuals from the 39 IDB member countries.
15.Can the program cover the administrative costs from the project?
Yes. The program can co-finance expenses for project management, including hiring a Project coordinator or a Project team. However, administrative overheads such as salaries of staff of the institution need not be paid from the counterpart contributions.
16.What is the duration for the application process?
The call for proposals ends on July 15th. If preselected, between July and September, a member of the Program will contact your organization to explain next steps in the process of developing the technology strategy to be presented to the Donor Committee for approval.
17.If the Donors Committee approves my project, when can I expect the first disbursement?
The average time between Project approval by the Donors Committee and the first disbursement is approximately six months.
18.How does the Program make disbursements?
The grants of the Program are made in several installments, and are structured according to the logic of the Project and its milestones or completion of goals. Usually the first amount is 5-20% of the total project. Subsequent disbursements may vary depending on the progress of the project and of completed counterpart contributions. Each project will be assigned to a member of the IDB / MIF team in the country of implementation, who will monitor disbursements.
19.My organization is currently implementing a project funded by FOMIN. Can my organization apply to the Program?
Yes. However the FOMIN does not finance the extension or expansion of projects, so the additional project idea must be completely new with different objectives.
20.What the Program consider important in the final decision to fund?
Innovation: Projects should introduce new and effective approaches to promote private sector development and poverty reduction.
Demonstration purposes: Projects should show potential for adaptation and/or replication in other sectors and / or other countries.
Sustainability: Projects must have compelling operational plans and high potential for financial sustainability after the programs resources are fully disbursed.
Partnerships: Projects eligible for the program is done with local partners to provide between 30% and 50% of the Project costs.
Additional Elements: Program resources should be critical to the outcome of a Project and should be the applied to the specific initiative proposed.
