Root Capital Founder and President William Foote was recently honored with an Ashoka Fellowship , one of the most prestigious awards in the social entrepreneurship field. A global organization, Ashoka supports those who share qualities traditionally associated with leading business entrepreneurs - vision, innovation, determination and long-term commitment - but are committed to systemic social change in their fields. Ashoka Fellows are recognized for their innovative solutions to some of society's most pressing social problems.

From casserole dishes and pie plates to cookie jars and tortilla warmers, creations made by artisans in Pomaire -a dusty village of 6000 about 40 miles outside Chile's capital city-have sparked consumer interest in the U.S. To help the Pomaire artisans take advantage of this growing demand, Root Capital recently loaned $30,000 to Comparte, a local non- profit focused on improving the lives of Chilean handcraft workers, and Laarsen Associates, Inc., an importer of handcrafted kitchenware, for the purchase of containers to help meet demand during the busy holiday season. Comparte exports more than 6,000 hand-crafted products from 400 workshops to nearly 30 countries each year, selling close to $1 million worth of Chilean goods. The non-profit makes frequent visits to Pomaire throughout the year to ensure that no child labor laws are broken and that work conditions are safe.

Since the 18th century, families in Pomaire have produced naturally lead-free clay bakeware and cookware. The process has been handed down for generations: no glaze or varnish is used, and the clay is dried naturally. Prior to being fired in the kiln, the clay is smoothed and burnished with an agate stone, resulting in a distinctive appearance for each piece. For many years, "Pomaireware" has been ubiquitous in Chile, but with the advent of plastics and cheap imports, local demand for the products has declined significantly, creating economic hardship for the community, where residents earn a meager average monthly salary of $200 (US). With increasing demand from American consumers, however, this handcraft product now has the potential to provide improved economic opportunity.

Chile has a long history of winemaking, going back to the conquistadores who brought grape vines with them in the mid 16th century and planted vineyards. Half of Chile's wine is produced in the Maule Region, where the industry has become an economic lifeline amidst rates of poverty and unemployment that are the worst in the nation.

Root Capital is entering a new realm by partnering with the winemaking cooperative Viñas Chequen (Chequen). Chequen's goal is to transform grape producers into specialty wine exporters, which will boost income and add value by entering desirable niche markets, such as organic and Fair Trade, which command price premiums.

Root Capital is proud to announce the opening of our new South American regional office in Peru. Spearheaded by Lima-based Investment Officer Daniel Rivera , our presence in Peru will help increase awareness of Root Capital in the region and ensure we're able to maintain close relationships with our borrowers-a critical need given our plans to increase South American loans from $8.5 million in 2006 to over $38 million in 2011. Our expansion also helps Root Capital reduce geographical risk in our portfolio by balancing loans in Central America with ones in South America. In the event of a hurricane or other calamity, this hedge allows us to protect the work we do globally and ensure the success of our mission.

Root Capital's approach was recently featured in the journal Microfinance Insights as an example of innovative lending. The article is entitled "From grower to green market: Bridging the rural finance gap".

The Milken Institute and the German Marshall Fund of the United States highlighted Root Capital as an innovator in their recently released report entitled "Transatlantic Innovations in Affordable Capital for Small- and Medium-Sized Enterprises."