Company Profile
Root Capital
Company Overview
Root Capital’s mission is to pioneer finance for grassroots businesses that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places.
Root Capital is a nonprofit social investment fund that provides credit and financial education to grassroots organizations—such as farmer and artisan associations as well as private businesses— in developing countries that have socially and environmentally responsible practices. Headquartered in Cambridge, Massachusetts, Root Capital currently has field offices in Costa Rica, Guatemala, Mexico, Nicaragua, Peru, and Kenya. By offering loans and financial training to small and growing businesses in rural areas of the developing world, Root Capital aims to fill the “missing middle” of finance— serving organizations caught in the gap between microfinance and traditional banking. Root Capital’s support enables borrowers to take advantage of good business opportunities and rising demand for their products by providing loans and technical assistance needed to grow operations, invest in infrastructure, or manage cashless periods before harvest time.
Company History
Founded in 1999, Root Capital has grown dramatically over the past decade. In 2008, Root Capital disbursed $41 million in loans to 145 clients in 26 countries, representing a 50% increase in disbursements from 2007. Root Capital’s 2009 operating budget is $5 million and current staff numbers 35. As of December 31, its lending capital is nearly $25 million. Loans range in size from $25,000-$1 million and support the production of coffee, cocoa, nuts, essential oils, and other sustainable natural products.