Why did we file a Form 1-A (Reg. A) with the Security Exchange Commission (SEC)?
This week we published on our website: "OUR MicroLending LLC’s Reg.A qualification on December 23rd by the Securities and Exchange Commission (SEC) to sale up to $5,000,000 Unsecured Investment Certificates (Certificates)”. The question is: Why are we doing this? Which is the purpose of selling that much in Certificates?
To accomplish OUR’s Mission statement of providing microcredits to Microbusinesses or unbanked entrepreneurs, we need a steady and permanent flow of funds to meet our demand, thus continued helping micro-entrepreneurs through our microloan program. This demand has been bigger than what we have expected given that the funds available from our shareholders, friends and relatives were not enough to cover our demand.
Such opportunity forced us to look for different alternatives to fund the loans. Therefore, we found that through a Regulation (A) Offering Statement under the Securities Act of 1933, and once the filed Form1-A is qualified by the SEC, we could sell up to $5,000,000 in Investment Certificates starting in the minimum amount of $1,000 with the maturities and the interest rate that have been established in the Offering Circular.
Thinking besides our needs and considering that there are different sizes of investors looking for new alternatives, for high social impact investment, or socially responsible investments with reasonable or risk adequate yields, we decided that: The Certificates will be offered in the minimum amount of $1,000, and in multiples of $100. The Certificates will have maturities of 6 to 18 months from the date issued, with a fixed interest rate depending on the term and based on a formula tied to the Treasury Bill ( See he Offering Circular).
With such characteristics, these securities offer four important advantages: 1) small investment (almost like saving); 2) adequate rate of return or yield versus its risk; 3) high social impact and 4) an Offering Statement Qualified by the SEC.
We strongly believe that with this new alternative we would meet the needs of our borrowers, offer an alternative investment for those interested in socially responsible investments and accomplish company’s Values, which is “We believe in lending and investing money combining ethic and financial goals, where a socially responsible investment can finance economic activities with a positive social impact, while obtaining a fair and reasonable profit”
And this is why we did it…we invite you to invest with us at www.ourmicrolending.com
See qualification letter below.
Emilio M. Santandreu
CEO
1/10/12
