Explosive population growth has created social and economic challenges for Mexicans working in the industries near the U.S.-Mexico border. The local government and private sector have not been able to respond to the need for housing and services at prices workers and their families can afford.

As a result, many new settlers build homes with discarded materials, such as wooden pallets, used tires, cardboard and plastic sheeting. In time, some are able to improve their living standards, but the majority lack the financial resources to build dignified housing. The border area is one of the most economically active in the world, with industries employing nearly 1 million people, providing them with much hope and a decent income.

Recognizing the need for housing near the US-Mexico border, CHF International/Mexico initiated a home improvement loan pilot project in 1996 in Ciudad Juárez. With funding from the Ford Foundation, the Inter American Foundation, Johnson & Johnson, the Cummins Engine Foundation and other private sector companies, the pilot project has been expanded, creating two non-profit organizations in Mexico, Fundación Habitat y Vivienda (FUNHAVI) and Fundación para la Vivienda Progresiva (FVP), to provide families with affordable loans to improve their homes. Today, FUNHAVI and FVP are working in Ciudad Juárez, Nuevo Laredo, and Ciudad Acuña to implement the program and administer loans for the improvement and creation of decent, safe housing.

In addition to housing loans, both programs have also begun providing loans for entrepreneurs to start or improve upon small businesses. For many, the high interest rates of formal banks makes it difficult, and sometimes impossible, to obtain loans for such endeavors. FVP and FUNHAVI provide fast, affordable loans. In the words of one client, "FVP provides smiles and confidence with its loans."

In 2006, FVP and Kiva.org, an innovative website that links ordinary people with entrepreneurs in the developing world to provide loans, partnered to allow anyone to lend to one of the many clients of FVP. Learn more about FVP's partnership with Kiva.org here.

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