3) Description of your products or services: Products and Services.:-Solidary Credit: for groups of 5 persons with solidary guarantee – Graduated Credits for senior entrepreneurs in Graneen and who have experienced a growth in entrepreneurship – Permanent Education program: forming of group and management relations – Program of Access to new markets. Impact of the Program: It develops culture of work; generates a sustainable income, improves education in managerial aspects, the employment, poverty, extreme poverty health and school performance is improved. Customers: Persons with needs, entrepreneurs with scarce economic and social resources excluded from the formal financial service that develop their micro entrepreneurship to improve their living conditions and that of their families. Solution: the permanent support in their working and living places secures the development of the credit products and training as needed. Several capacities, needs and realities of life are recognized. We have Customer’s Committees to share with the customers’ opinions regarding the work of credit advisors, effectiveness of the products and suggestions for possible innovation. Innovation: Is a local actor that develops a micro finance system under an integral vision (credit plus education) professional and compromised in obtaining operating and social self sustainability. It works in the zones being attended (door to door contact) It narrows the gap between entrepreneurs and banks.

4) Description of the operational model: A- The implementing of Solidary Groups was adopted as a micro credit methodology. Each group to be formed at least by five entrepreneurs that solidary undertake the payment of the loan. They develop independent economic activities to increase their income through the solidary credit, the training and technical assistance. B. Description of the Operating Model: 1 – Research of zones to be developed: Visits are made to government and non government institutions of the zone, meetings with local people and references to obtain information. 2 –Massive notice of meetings made in order to stimulate as many as possible micro entrepreneurs of the zone to be part of the Program and undergo the initial training. 3 – Pre Disbursement Training: micro entrepreneurs attend and assimilate the methodology and prepare their own business plans. The credit assistants are in charge of disseminating it in the zone. 4 – Delivery of credit. Once the previous stages have been approved, the credit is approved and payment made. Installments are paid on a fortnight basis in the collecting bank.

5) Description of the financial model: Entrepreneurs in need pay on fortnight installments throught the collecting bank. A – The Access Mechanisms to the Microfinance Program are: a) Permanent dissemination of the Program. B) Advertisement in radio, television, and streets. C) Advertisement and organization of special events. D) Visits of the credit advisers to the homes of potential customers (door to door contact). E) Contact and recommendations through local references and those of the borrowers. B) Other financing sources in addition to repayment of customers 1) Financing lines of second line institutions. 2) Donations C - Self sustainability. It is hoped to reach financial sustainability at the end of 2006. The strategy adopted is the increase of new customers and the increase of credit amounts to those that are customers in order that the increase of the average of credit amounts leverage the costs in favor of those in need.

      Client fees represent this approximate percentage of operational budget: 34%

6) Key operational partnership: A) Operative Partnership – Main Partners: FGM has entered into Technical Cooperation Agreements with other countries (Banco del Estado de Chile) with Media, Contracts with business: telephone, mail, logistics (Andreani, CTI, Impsat) Agreement with local Universities (traineeship Regime) Embassies, Chambers of Commerce, Foundations (Compas, Conin, Fucaes, Aragon, etc) and Ministeries to cooperate with implementing the program or holding Symposiums. FGM agreed with the government that those that benefit from subsidies have to work in their micro enterprises as a counterpart of the subsidies obligations, assuming the responsibility before the Work Ministery. The Government of Mendoza gave a non repayable contribution for a special training program for its customers B) Opportunities: Lack of knowledge of microfinance; Lack of integral training in zones in need; Alliance of Technical Cooperation with local institutions. C) Challenges: Disseminate microfinance through the training media: Develop micro financing technologies AdHoc; create and merge common strategies with other organizations.

7) Current outreach:

What is the order of magnitude of the potential demand for your products or services? Which
    other low-income groups, countries or regions could benefit from it? Try to quantify (number
    of clients, market size in currency):
Specialized studies (IDB 2003) estimate that in Argentina there are 2 million persons that are micro entrepreneurs. These studies estimate that the demand of microfinance services are approximately 150.000 micro entrepreneurs. Today, less than 15.000 are benefited. This means that the number of persons benefited by the Microfinance program might be increased in future to 150.000 micro entrepreneurs.

8) Scale-up strategy: