NPR, together with Dean Karlan, visited southwest Uganda to see how the Sustainable Market Inclusive Livelihood Pathways to Self-Reliance (SMILES) program, a Graduation program evaluated by IPA, is helping families in refugee settlements and host communities build more stable incomes.

A key takeaway from the conversations (read the transcript here) was that access to capital alone is not enough. Recent cuts in humanitarian aid mean there is less money circulating in local markets. A business setback could mean less food on the table or children missing school, so families are understandably cautious about borrowing and investing.

The program is testing a group “block grant” model. Instead of delivering all funds individually upfront, a portion is pooled so families can borrow when they feel ready and repay as their businesses grow. This gives people more flexibility and can help the same budget reach more households over time.

IPA, AVSI Foundation, and DAI are evaluating whether this approach helps families invest more confidently when resources are tight and whether it can be a cost-effective way to expand support to more communities. The aim is to ensure Graduation programs continue to deliver impact even as conditions change.