Make new friends but keep the old, one is silver and the other gold.
The US is certainly seeking to mint some new friends and allies around the world. In an age where your economy depends on everyone else’s, and everyone else’s depends on yours, it is critical to look beyond your own immediate interests and foster success in others.
Yesterday, it was announced that the US Agency for International Development (USAID) and the Department of State have struck up new partnerships in Latin America to plant the seeds of mutual financial benefit. USAID will work with three private banks in the region to offer up $98.5 million. This pot of money will be available exclusively for local lending to small and medium-sized enterprises, known as SMEs.
USAID is an agency of the US government that is interested in supporting US foreign policy goals by providing assistance – economic, development, and humanitarian – worldwide, and certainly these new partnerships will nurture the entrepreneurs of Latin America.
These partnerships are created with the goal of aiding struggling SMEs in Latin America, where many businesses fail to meet their potential because of lack of access to the capital needed to thrive. With the help of these guaranteed loans, some 4,000 SMEs will now have the access to credit necessary to allow businesses to grow, creating local jobs and stimulating economies.
Nicaragua will now see $13.5 million coming their way for local financing, while El Salvador, where half of all its economic activity can be attributed to SMEs, will greet $25 million as Mexico welcomes $60 million from these new agreements.
Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson spoke highly and hopefully about the newly created partnerships, saying that they “reflect the United States’ commitment to job creation, entrepreneurship, and the economic success of citizens of these nations.”
These partnerships are investments that strengthen the ties between Latin America and the US. Hopefully, Latin American SMEs will be able to achieve their full potentials with this new capital and benefit us all because in today’s global economy, when your friend succeeds, you succeed.