Woman-to-Woman Business Loans Help 206 Entrepreneurs

A municipal microfinance initiative in Mérida is giving women entrepreneurs the financial boost they need to start or grow their businesses. Business loans have already benefited more than 200 women this year.

Mayor Cecilia Patrón Laviada’s “Crédito De Mujer a Mujer” program delivered its fourth round of loans in 2025 at a ceremony in the southern community of San José Tzal. Since January, the initiative has provided 206 women with a combined 1,963,512 pesos ($108,800) in financing for small businesses ranging from butcher shops and bakeries to beauty salons and laundromats.

“We set out to contribute to positive change so that every mother who wants to improve herself can do so,” Patrón said during the loan distribution event. “With the Woman-to-Woman program, Mérida women can access up to 20,000 pesos ($1,100) to strengthen or start their business and improve their community.”

The program targets women who are often overlooked by traditional banking systems. Many lack the collateral or credit history required for conventional business loans, mirroring challenges faced by women across Mexico’s informal economy.

María Lucila Iut runs the Estética María beauty salon in San José Tzal. She used her 11,000-peso ($610) loan to buy new furniture and equipment for her shop. “With this support I now have more tools to grow and offer better service,” she said. “I feel very grateful and motivated to keep moving forward.”

The program goes beyond just handing out money. It includes comprehensive support designed to build participants’ leadership skills, self-esteem, and confidence while creating a network of women supporting each other in business.

According to data from Mexico’s National Institute of Statistics and Geography, 39% of Mexican women own no financial products, and fewer than half have access to savings accounts. The gender gap in financial access persists across Latin America, where studies show microfinance programs can improve women’s economic independence and household decision-making power.

Research on microfinance in Mexico has shown mixed results on income growth but consistently positive effects on financial stability and wellbeing. Women who participate in these programs often avoid selling assets to cover debts and report increased trust and household authority.

Patrón emphasized that many program participants are heads of household seeking to build better futures through self-employment. The initiative specifically targets women in Mérida’s southern communities and various neighborhoods throughout the capital.

“Mérida women have talent, capacity, and drive to succeed,” the mayor said. “This program was born from listening to them, from understanding that they only need someone to believe in them. As a woman, I committed to having a city government that believes in you and helps you reach your goals.”

Business Loans for Equality

The Woman-to-Woman credit program forms part of the current administration’s 2024-2027 commitment to gender equity and local entrepreneurship. Officials position it as a cornerstone of municipal economic development strategy with social justice at its core.

Banco Compartamos, Mexico’s largest microfinance institution, reports that women account for roughly 88% of its 2.6 million clients nationwide. The bank’s village banking model serves groups of 10 to 50 women who screen each other for creditworthiness rather than relying on traditional collateral requirements.

Microfinance programs in Mexico face ongoing challenges including high interest rates, limited financial literacy among borrowers, and structural barriers that keep women in the informal economy. Experts emphasize the importance of coupling loans with business training and financial education to maximize impact.

Pro Mujer, a nonprofit social enterprise operating across Latin America, recently partnered with southeastern Mexican lender Avanza Sólido to expand women’s access to responsible financial services. The organizations cite persistent structural barriers that limit women’s entry into formal financial systems.

Women interested in Mérida’s program can apply at the Departamento de Fomento Productivo de la Dirección de Desarrollo Social.

Program Quick Facts

206 women received business loans in 4 distributions during 2025
Total investment: 1,963,512 pesos ($108,800)
Maximum loan amount: 20,000 pesos ($1,100)
Business types funded: butcher shops, stationery stores, fruit stands, beauty salons, bakeries, laundromats, crafts, and car washes
Program includes leadership training and confidence-building support
Application location: Departamento de Fomento Productivo, Calle 65 #368-A between 40 and 42, Centro, Mérida
Office hours: Monday-Friday, 8 a.m. to 3 p.m.
Contact: 999-924-6900, ext. 81819 or 81812

Sources: La Jornada Maya, Poverty Action Lab, The Borgen Project, Pro Mujer