Colin Droster
Tom Eggert of WorldWise Microfinance.
Tom Eggert: Microfinance is about restoring dignity and opportunity.
One small Madison nonprofit surely can’t fill the gap left by the Trump Administration’s drastic cuts in foreign aid. But the founder and president of WorldWise Microfinance says the group’s mission — providing loans for entrepreneurs in developing nations — carries even greater significance in the wake of dwindling U.S. support.
“We know that even small amounts of money in the right place can create huge change for people,“ says Tom Eggert, UW-Madison emeritus professor. “By attacking poverty at the individual family level, we can help create some long-term wealth.”
The logo for the 2025 Nonprofit Issue.
Inspired by his Peace Corps experience, Eggert joined with students in his sustainable business class in launching the microfinance program to aid survivors of the 2010 Haitian earthquake. It has since expanded its reach to the Philippines, the Dominican Republic, Ghana, Kenya and most recently Uganda.
WorldWise operates by soliciting contributions from donors — many from the Madison area — and then working with local partners in developing countries to distribute the funds. It made a record 615 loans totaling some $130,000 last year, with 88% of those loans going to women entrepreneurs.
The model centers on group lending, where small groups receive loans together, fostering accountability and peer support. No member can access a new loan until all have been repaid. Nearly 70% of loan recipients have contributed to a savings account for the first time and more than 50% of families report eating at least one more meal per day.
One loan recipient, Fe Ruizol of the Philippines, shared her story with WorldWise for its 2024 annual report. A widow with three sons, she used the money to put herself through cosmetology school and then start her own beauty salon.
“Since my husband died tragically, I’ve been the sole source of income,” says Ruizol, 44. “The loans from this project have been an essential part of my ability to provide for my family.”
The U.S. Agency for International Development (USAID) was formally shut down in July, with oversight of remaining foreign aid transferred to the State Department. That has left millions in vulnerable communities facing the loss of essential services from healthcare to food security, advocates say.
“I saw firsthand how different methods of economic development were impactful in marginalized communities around the world,” says Ali Syverson, a former USAID employee now assisting WorldWise. “Unfortunately, the poorest are often overlooked by their own governments and that’s where international aid can really help.”
WorldWise has just hired its first paid staff person to help its 18-member volunteer board in raising additional capital. A recent fundraising event at the Garver Feed Mill on the city’s east side drew a full house as the group works to increase its profile in a community overflowing with nonprofits.
But Eggert emphasizes that microfinance is more than providing financial support; it’s about restoring dignity and opportunity by investing in people, not just projects.
“We’re not sending just money into these countries,” he says. “We’re looking for organizations already committed to helping more people get access to the banking system and helping their families escape from poverty.”
