WOCCU TIFI Project Helps Establish First CUSO in Guatemala

New enterprise allows for expanded lending that is off limits to credit unions

September 30, 2021

MADISON, Wis.—World Council of Credit Unions worked hand-in-hand with its member credit union association in Guatemala to establish in August the nation’s first credit union service organization (CUSO), which is able to provide loans to members whose businesses grow into registered corporations—something credit unions have been unable to do previously in the Central American country.

The CUSO, Inversión y Desarrollo Crediticio Comunitario, S.A., is owned by a group of more than 20 credit unions affiliated with Federación Nacional de Cooperativas de Ahorro y Crédito de Guatemala - FENACOAC who contributed US $5.1 million to fund its creation. It was developed with the support of the WOCCU Technology and Innovation for Financial Inclusion (TIFI) Project—an activity funded through the USAID Cooperative Development Program (CDP). TIFI team members provided resources to support the planning, preparation and establishment of the CUSO.

Establishing a CUSO was a necessary legal step to help FENACOAC’s credit unions grow their business lending portfolios. Guatemala’s General Law of Cooperatives prohibits credit unions from providing financing to registered corporations, which means that once a small-to-medium enterprise (SME) becomes registered, they can no longer work through their local financial cooperative for needed finance and must turn to banks for financial support.

“For more than 50 years, FENACOAC has partnered with credit unions that have supported entrepreneurial members since the beginning of their commercial activities. The CUSO makes it legally possible to continue working with those same members once their businesses become legal enterprises, by helping them meet working capital needs, pay for operating expenses, and purchase assets and raw materials,” explained FENACOAC Business Coordinator Luis Perez. “The business owners also have the comfort of knowing credit union professionals working in the cooperative spirit will continue paying attention to and safeguarding their financial needs.”

Any profit generated by the CUSO will go back to the credit unions that funded its creation. Credit unions will also benefit by being able to provide other services registered corporations will require, such as loans and insurance for their employees.

“The entire goal of the TIFI Project is to help credit unions increase lending to small-and-medium enterprises and deploy available capital effectively. The fact that our team was able to work in unison with WOCCU’s member credit unions to develop a legal solution to the lending limitations they faced is a win for cooperative development and a model that can be replicated elsewhere, if necessary,” said Megan O’Donnell, WOCCU Senior Vice President of International Projects.

The WOCCU TIFI Project also works to grow SME financing initiatives in the African nations of Kenya, Burkina Faso and Senegal. You can learn more about the TIFI Project here.

World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.

World Council has implemented 300+ technical assistance programs in 90 countries. Worldwide, 82,758 credit unions in 97 countries serve 404 million people. Learn more about World Council's impact around the world at

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Contact: Greg Neumann
Organization: World Council of Credit Unions
Phone: +1 608-395-2048

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