Details About Microloans

We believe it is a matter of Christian stewardship and good business practice to be transparent with finances and operations for microloans. Following are the financial practices of (“UB2”). This agreement is binding as regards any and all agreements made between UB2 and the participants in UB2’s microloan program, and it supersedes any previous agreement to which UB2 has been bound to its constituents. Please note that the use of the male pronoun in the following copy in no way suggests a gender preference as regards the selection of Entrepreneurs.

  1. Terms: Persons receiving loans for the development of microenterprises are “Entrepreneurs.” Intermediaries acting on behalf of UB2, administering the loans, are “Field Partners.” Persons who use the UB2 website, making loans to Entrepreneurs via Field Partners, are “Lenders.”

  2. Application for a Microloan: Entrepreneurs make application for a loan through a Field Partner, whereby they are properly vetted.

  3. Acceptance of a Microloan Application and Discrimination Policy: An application for a loan from an Entrepreneur is reviewed by a Field Partner and the application is either accepted or rejected based on risk, track record of the Entrepreneur, and other qualifications. No loan is accepted or rejected based on any non-merit factor including but not limited to ethnicity, national origin, color, caste, religion, gender, disability, age, or social standing. If a loan application is accepted, the Entrepreneur is recommended on the Lend page of the website along with a photo, a description of him and his work, and the amount of the loan request rounded up to the nearest USD 25 increment.

  4. Making Microloans: Lenders make loans to Entrepreneurs using one of two methods, using the online service provided on the Checkout page or by sending UBuild2 a check or money order. All monies which are designated as loans are treated as loans without surcharges by UB2. For example, when a Lender makes a loan of $50, the Entrepreneur receives $50 (in his local currency).

  5. Contracts and Interest Rates: The Field Partner, and the Entrepreneur make contracts with one another as regards interest rates, repayment schedules, and any special programming which the Entrepreneur will be responsible for as a part of his business building activity (e.g., training in bookkeeping). Field Partners may assign reasonable rates of interest to the loans they host in order to recover their administrative and program expenses and inflation. The interest rates for loans may vary depending on local conditions, such as inflation and government regulations. UB2 covers its own operating expenses through gifts designated as “donations.” Lenders lend to Entrepreneurs at their own risk with the understanding that monies may not be repaid. Lenders are not paid interest on their loans. Repayment schedules vary, depending on the circumstances of the Entrepreneur. However, they may not be for any longer than nine (9) months.

  6. Community Building: It is a part of UB2′s programming to intentionally build community among its partners through social media networks, especially Facebook. Entrepreneurs, Lenders, Field Partners, and UB2 interact by posting updates concerning their activities. If an Entrepreneur does not have access to the online tools necessary to do this, his Field Partner will make the necessary arrangements on his behalf using the resources he has at his disposal. Persons and organizations which participate with the community building tools used by UB2 accept responsibility for the outcomes of the relationships they build with others.

  7. Loan Fulfillment: When Lenders fulfill an Entrepreneur’s loan request, the money is transferred to the Entrepreneur through the Field Partner with cash or another medium appropriate as regards the Entrepreneur’s business venture, such as agricultural products and supplies, livestock, or inventory for his shop. Partial fulfillment of a loan request may be made at the discretion of UB2.

  8. Repayment of Microloans: As an Entrepreneur builds his business, he repays his loan according to his agreement with his Field Partner. In addition, he participates in any special programming according to his agreement with his Field Partner. Further, the Entrepreneur regularly reports on the development of his businesses to his Field Partner.

  9. Late Payments and Defaults: If an Entrepreneur is late in making a payment on his loan, the Field Partner is responsible for collections. If an Entrepreneur defaults on a loan, after due process of attempting to collect the loan and determination that further efforts would be in vain, the loan is written off by the Field Partner and UB2, and appropriate reporting is done. The Lender assumes this risk and has no claim on repayment of a loan should the Entrepreneur default.

  10. Repayment and Reallocation of Microloans: When an Entrepreneur successfully repays his loan, he may apply for another larger loan from UB2. Lenders are informed of the repayment of the loan made by the Entrepreneur they lent to, and they are given the opportunity to redirect their loans to other Entrepreneurs, to donate them to UB2, or to be repaid their loans.

  11. Orphan Loans: UB2 informs Lenders of the repayment of their loans multiple times via email. However, if after 90 days a loan is not redirected by the original Lender, it will be re-designated as an Orphan Loan, and reallocated at the discretion of UB2.

  12. Responsibility: A Field Partner may only invest any cash balances belonging to the UB2 program in conservative, interest-bearing, liquid assets, such as savings accounts and certificates of deposit. Any and all speculative investments including real estate, livestock, dowries, bride price, stocks, bonds, currency, gold and other precious metals, options, and futures are strictly prohibited. UB2 funds may only be used for activities identified in UB2’s mission, which is to build microenterprises and farms. Thus, relief work, personal loans, bribery and so forth are not acceptable uses of UB2 funds.

  13. Tax Deductions: UB2 is a non-profit, public charity (501(c)3). All donations to UB2 are tax-deductible. However, at no time may Lenders claim a tax benefit for loans. In other words, one cannot take a tax deduction for money they have not actually given away. On the other hand, if loans are converted into donations, they may qualify as a tax deduction. It is the responsibility of the Lender to make this qualification. UB2 is not responsible for the Lender’s determination of whether or not the money they have lent or given to UB2 is tax-deductible.

  14. Disputes: The Lender, upon making loans and/or donations to or through UB2 agrees to resolve any and all disputes by final and binding arbitration according to the laws of the State of California and any other jurisdiction whereby legal authority is held concerning the matter disputed.

  15. Website Use: UB2 retains the right to develop its website at any time according to its administrative needs. UB2 does not share any of the information it gathers as regards the use of its website with 3rd party organizations for any purpose. Lenders, Entrepreneurs, Field Partners, and others who participate in the activities of UB2 are responsible for remaining up to date on any changes made therein which might affect the nature of their relationship with UB2. UB2 will provide timely notice of updates to appropriate parties via email and website revisions. The content of UB2’s website is proprietary and may only be used by UB2. Constituents of UB2 may only use the content of the website according to its purpose as defined by UB2. Permission for other uses may be granted by UB2 to a website user on a case-by-case basis for actions such as research. Any and all information shared by Lenders, Entrepreneurs, and Field Partners on the website UB2 may access, disseminate, and share with appropriate parties in order to comply with local and national laws, respond to government requests, manage technical issues with the website, and address customer service issues. It is not permissible for anyone to ever use any of the content found on the UB2 website to harm, harass, manipulate, or in any other way infringe on the freedoms and rights of anyone or anything associated or not associated with UB2 through any type of electronic or non-electronic means. Offenders will be prosecuted to the fullest extent of the law. UB2 reserves the right to suspend or terminate the use of the website by anyone for any reason. To the best of its ability UB2 posts and permits posting on the website the most accurate information available as regards its Field Partners and Entrepreneurs. However, in the event of fraud on the part of an Entrepreneur or Field Partner, UB2 cannot be held financially, socially, politically, or emotionally liable for any losses, financial and otherwise, which a Lender may incur.

Revised 3/12/17