The Pucheng County Women's Sustainable Development Association (PCWSDA) was formed in 2005 to provide loans and business training to poor families so that they could start or expand micro businesses. From inception through April 2010 it has disbursed over 7,700 loans totaling more than $1.9 million (RMB 12.9 million). It has achieved a 100 percent loan repayment record. These efforts have increased household income by up to 100 percent, and have resulted in more education for children, better nutrition and health care, and improved housing. These efforts have also fostered a greater sense of hope, self-esteem, and independence for the clients and their families.

The 1990 Institute chose to support the Pucheng Association not only because it operates in a high-poverty area, but also because it has a strong and committed management and staff, an excellent business foundation of policies, procedures, and processes, and a sterling operational track record. In addition, the Institute has had an excellent working relationship with the Shaanxi Provincial Women's Federation, having cooperated for ten years on the Spring Bud Program. In addition, we also have strong support from Plan China and the Pucheng County Women's Federation, who provide technical and social services to PCWSDA clients.

The critical contributions that the 1990 Institute provides to the PCWSDA are business education, strategy, and access to capital for growth.

Why microfinance in China?

Sixty percent (780 million) of China's population still live in rural areas and many earn less than $1.25/day--the World Bank standard for poverty in 2005. This population has virtually no access to capital, business training, or other financial services needed to improve their standard of living.