What is Choukoun?

Choukoun is a micro business project started by a group of people in Essex, Connecticut and Deschapelles, Haiti who saw a need to provide credit to rural Haitians who had, or who would like to start, small businesses who would not otherwise have access to credit. Choukoun provides small loans and advice to people in rural Haiti in an effort to combat poverty and joblessness.

What is micro business?

The concept of microcredit was started in the 1970s by Muhammad Yunus who won the Nobel Peace Prize in 2006 along with Grameen Bank, which he started.  Its concept is to provide credit in the form of small loans to poor people who would not ordinarily have access to credit thereby enabling them to break the cycle of poverty. 

Who are the Borrowers?

The borrowers are a cross-section of the community. Currently, they include teachers, farmers, tailors, repairmen, computer technicians and carpenters.

How are the Borrowers selected?

When funds are available for new loans, people in the community are invited to submit an application describing the project, their experience, and their plan for repayment.  The Advisory Boards review the applications but the Essex Advisory Board makes the final determination of who receives the loans to avoid any appearance of favoritism. Borrowers must  (a) describe a valid business idea that will benefit their community, (b) demonstrate s/he has competence in either the business or in the proposed business, and (c) demonstrate that the proposed business has a more than reasonable chance of success.

What are some of the loans that have been given?

Many loans have been given.  For example, one of our largest loans was to a farmer who bought a portable pump to deliver water from an irrigation canal to his field.  He was able to water his field in the dry summer months thereby increasing food production for the community.  He also pumped water to his neighbors’ fields for a fee thereby creating a source of revenue to pay back his loan.

One of our smallest loans was to an artisan who bought scissors, dishwashing soap, thread, needles, stiff cardboard, and varnish to make attractive baskets out of plastic wrappers he finds discarded throughout the countryside.  Since there are a limited number of people in the community who have the funds to buy the baskets, mentors in the United States are working to find a market for the baskets. 

What is the size of the loans?

Loans range from $250 to $2,500.  The average size of the loan is $1,150.

What interest is charged?

Interest is charged at a rate of 10% per annum which is much lower than the current commercial rate in Haiti and lower than that charged by many microcredit projects.

What is the repayment rate?

Currently, 80% of the borrowers have made payment of interest and/or principal on their loans.

Does Choukoun do anything else beside give loans?

Yes. Choukoun also provides business advice and training to borrowers.  It also provides mentors to help borrowers grow their business.  Choukoun also introduces many borrowers to commercial banking for the first time as all borrowers are required, as a condition of their loan, to open a bank account at a local bank.

Choukoun is presently encouraging two rice farmers to put part of their rice field into a different system: intensified rice production  (SRI ).  Using the same seeds and less water, farmers in other developing countries have been able to greatly increase production from the use of SRI.  Choukoun is providing guidance in SRI and also guaranteeing the income that they would have gotten had they planted that section of their field in the traditional way.  That enables them to take a chance on the new system.  When it works, others will be inspired to use the method themselves. 

Does Choukoun have any employees?

Since its inception in 2007,  Choukoun has conducted all of its operations entirely through volunteers until March 2010 when it hired two Haitian college students who were displaced from their studies in Port au Prince because of the earthquake.  They visit the borrowers on a regular basis and report to both Advisory Boards with respect to the borrowers’ businesses and the repayment of their loans.These two students are working only on a part-time basis, until their school starts again.  It will give them some experience in their field of management and also will help Choukoun to provide closer ties to the borrowers. 

Why Haiti?

Haiti, just a short distance from the United States, is the poorest nation in the Western Hemisphere.  80% live under the poverty line and 54% live in abject poverty.  The unemployment rate is 80%.  The minimum wage is less than US $5.00 per day.  Choukoun provides opportunity to make a difference in the people and the communities in which they live and work.

Why Deschapelles?

Jenifer Grant, one of the founders of Choukoun is the daughter of the founders of Hôpital Albert Schweitzer, which is in Deschapelles. Dr. Larry Mellon and his wife, Gwen Grant Mellon, read of the work of Albert Schweitzer and decided to devote the rest of their lives to working with those in need.  The hospital (hashaiti.org) has provided uninterrupted health care since 1956.  It is a “hopital de reference” for the area, providing surgery, high-risk ob, a neonatal intensive care unit, pediatrics and internal medicine.  It has two operating rooms, its own lab, x-ray and pharmacy, and generates all its own water.  It served over 1,000 patients immediately following the January 12, 2010 earthquake, often with as many as 500 patients in its 90-bed hospital facility.   HAS now houses a prosthetic lab, established and funded by Hangar Prosthetics Foundation.  Patients who needed amputations following the earthquake as well as patients who had lost limbs for other reasons now have hope for their future as they receive prostheses. 

The hospital serves as the hub of medical care in the Artibonite Valley.  However, HAS also provides outreach services through extensive Community Health and Community Development projects.  HAS has six outlying dispensaries which provide preventive, health education, and basic health services.  Community Development activities focus on reforestation and wells and potable water projects. 

Jenifer Grant was inspired to begin this small micro-business loan program as she knows many people in the area.  After she had been approached by several people who had good ideas to begin or expand their businesses but lacked capital, she collaborated with people in Essex, CT to establish this  program. 

Where is Choukoun located?

Choukoun is located in two places,  Deschapelles, Haiti and Essex, CT as Choukoun is governed by two advisory boards, one in Essex and one in Deschapelles.  All the loans are made to people in the Deschapelles area.

Where is Deschapelles?

Deschapelles is a town in the Artibonite Valley in central Haiti.  It is approximately 2-3 hours north of Port au Prince.

How Can I Help?

You can help by donating money to Choukoun!  With your donation, we will be able to make more loans to people in the Artibonite Valley. Donations are used many times over. Nearly 100% of your donation is used to make loans.  As loans are repaid, the principal is reused to make loans to other borrowers.  So your donation is used many times over to help many Haitians initiate or grow their businesses. If you are interested in helping Choukoun, please click here.

A micro business project to combat poverty in rural Haiti.