A soldier from the 1st Bn., 8th Inf. Reg., 3rd AAB, 4th Inf. Div., distributes equipment from the micro-grant program to a local Iraqi businessman who plans to expand his business. The micro-grants are expected to boost the local economy. Photo by Spc. Chastity Boykin

With the improvement of security, the business community is in a better position to grow. But in order to grow, some small businesses need some help.

Soldiers from the 1st Battalion, 8th Infantry Regiment, 3rd Advise and Assist Brigade, 4th Infantry Division, recently distributed micro-grants to 36 small business owners in Maysan province.

The micro-grant program is designed to stimulate the local economy by improving and expanding local businesses, said Maysan Provincial Reconstruction Team economic advisor, Donna Carter.

U.S. forces issue micro-grants in sums of up to $5,000 to Iraqi small business owners who are chosen after a deliberate application process. Approximately 30 days after the micro-grants are issued, U.S. troops will follow up to assess the business owners’ progress.

A micro-grant recipient and local car-repair shop owner said he plans on using the new equipment, a car jack, tools, and a generator, from the grant to improve his business and expand his shop.

According to Sgt. 1st Class William Riley, project manager for Maysan, with Battery A, 3rd Battalion, 29th Field Artillery Regiment, assigned to 1st Bn., 8th Inf. Regt., business owners who wish to receive a grant must first provide a plan of action of how the grant will be used. Businesses are then screened according to how the grant will impact the individual business and the local economy.

“Many of these shops lack the essential equipment to efficiently conduct day-to-day operations. By providing tools to help make these shops viable economically, it provides an opportunity for them to grow and contribute to the overall economic health and stability of the province,” said Riley.

DVIDS
Story by Spc. Chastity Boykin

Life is beginning to return to normal on the streets of Taza, Iraq, after a car bomb devastated the primarily Turkish city in Kirkuk province, in late June.

Lt. Col. Hugh McNeely, the deputy commander of 2nd Brigade Combat Team, 1st Cavalry Division, was welcomed by Taza city mayor, Talib, and street vendors alike Aug. 24, as he came to see how the city has continued its recovery.

According to Talib, the city has running water, electricity and functional sewers again. Many businesses have reopened their doors, and a large number of the people who were living in tents have moved out to stay with relatives.

Although things are going well, the mayor said residents of the city still need help.

“We need a lot of goods,” he said. “The city still needs to provide for the victims of the attack and it needs help to do it.”

After the attack, the city relied heavily on donations and support from the Government of Iraq, various non-government organizations and 2nd BCT but, recently, supplies have dwindled.

At one point soon after the attack, they actually had too much and were losing some perishable goods, said McNeely. Now, supply levels have dropped and the people need further assistance.

“As long as you have people in the tent city, and their houses aren’t rebuilt, there is a requirement to provide for them,” he continued.

One way the GoI has pledged to support the victims of the attack is through grants and payments to rebuild their homes, repair business and replace goods lost or destroyed.

Talib said he had recently submitted more than 400 applications to the GoI regarding these payments, and he expects that they will be paid fairly quickly.

“This will allow them to get back on their feet,” said McNeely.

After speaking with the Talib, McNeely visited several reopened businesses along the market street in Taza.

In recent weeks, 2nd BCT has delivered several micro-grants to businesses in the area to pay for damages and purchase new supplies.

“Obviously, many people lost a lot in the attack,” said McNeely. “This is an infusion of cash that helps them rebuild their businesses.”

Taza has also constructed a new burial site and monument to honor those who lost their lives during the attack.

“They [Taza residents] took a temporary grave site and made it into a very fitting monument,” said McNeely. “It’s very nice, very well done.”

Although there is much that still needs to be rebuilt, Taza is making progress, and McNeely and the others who visited were excited to see it.

“The city is functioning, the stores are open, and the people are going on with their lives,” said McNeely.

MNF-I

As violence decreases in Iraq, non-governmental organizations and relief organizations play an increasingly important role in restoring social, cultural and economic stability. Since 2003, the U.S. Agency for International Development has invested more than $150 million in Iraqi micro-loans.

The Rakkasans of 3rd Battalion, 187th Infantry Regiment, 3rd Brigade Combat Team, 101st Airborne Division (Air Assault) living in rural Yusifiyah recognized an economic challenge facing the citizens in their area. They searched for a solution to the scarcity of loans available for independent business owners.

The result is a non-governmental organization known as Izdihar. The organization uses USAID funds to implement a loan program. Izdihar established regional offices and training loan officers to evaluate potential recipients and disburse loans.

“It’s great because it teaches responsibility and independence,” said Staff Sgt. Jeremy Smith of 3-187th Inf. civil military operations team.

Smith, a native of Fontana, Calif., met with USAID representatives to establish the program in Yusifiyah. “Before this program, the business owners had no support,” he said. “Now they have hope.”

The loan officer for Yusifiyah is Mohammed Malik, a small businessman himself. After attending training in Baghdad, Malik walked the streets of Yusifiyah to advertise the new loans.

There he found Almasaodi.

Alamsaodi forms ground beef, onions and spices around skewers and cooks them over a fire. Then, he serves the meat in a pocket of unleavened bread, cucumbers and tomatoes. His kabobs may be delicious, but they aren’t as profitable as he needs.

Almasaodi wants to buy a new refrigerator for his restaurant, but profits from the kabobs are too small. He is unable to take out a loan, lacking collateral and a credit history.

The loans disbursed through Izdihar have different requirements and are intended to help business owner such as Almasaodi. Malik said Almasaodi met the loan criteria because of his “experience, reputation and knowledgeable workers.”

Almasaodi borrowed $1,500 to buy chairs, a generator, cooler and to increase his daily purchasing of meat and ice.

Malik also plans to offer loans to businesses that sell women’s clothing, truck repair services and cooking equipment.

The Yusifiyah micro-loan office establishment shows an important shift in focus for military operations. “It’s not just about security; it’s about making Iraq a better place to live,” said Smith.

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By Capt. Steve McGregor
3rd Brigade Combat Team, 101st Airborne Division

A large percentage of new businesses in the U.S. fail within the first year. Starting a business in Iraq is no different, if not harder, but with the help of Marines with Company F, 2nd Battalion, 3rd Marine Regiment, Regimental Combat Team 1, four Iraqi businessmen have hopes of beating the odds.

Senior leaders of the company met with the businessmen, a carpenter, a pharmacist, a car painter and a mechanic, July 7, at Gnather Iraqi police station and handed them each a micro-grant to help jump start their businesses. The grants were available as part of the Micro-grant Program, started by RCT-1 in an effort to improve the economy in its area of operations by supporting small business owners.

Approximately $10,000 was distributed among the four businessmen, who were chosen based on an assessment by Marines and IPs while on patrols.

“We had [business owners] fill out questionnaires,” said 1st Lt. Aaron Brusch, Executive Officer, Company F, 2nd Bn., 3rd Marines. “Out of the 50-plus questionnaires we received back, [leaders in] our company prioritized which of them seemed most likely to benefit from the grants.”

The store owners who applied for the grants were prioritized based on the type of service they provided, how much the grant could help each individual improve their business and how their improved business could contribute to the overall economy.

Each recipient was excited to receive the funds. All said they would either hire more workers or buy supplies they previously could not afford.

“I can’t explain how happy and grateful I am to the Marines for helping me and my business,” said Wassan Ahmed Ali. “This will greatly help me, and I appreciate the Marines for everything that they have done to help me and other Iraqis.”

Marines with the company later followed up with the business owners to see how much the grants really helped their businesses.

“All have either hired new workers, bought more supplies or expanded and improved their stores,” said Brusch.

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By Cpl. Chadwick deBree and Cpl. Steven McGinnis
Regimental Combat Team 1