Constanta Foundation – the first microfinance organization in Georgia, was founded in 1997 as a local none commercial entity. It started microcredit operations in October 1997 with the granted funds from Save the Children (SC)/UNHCR. In 1999 Constanta received two-year grant from SC/USAID, developed successful expansion model, set up regional branches and thus became the first microcredit provider in remote areas of the country. In the year 2001 Constanta introduced a novel outreach office methodology that enabled foundation to receive an award from CGAP. In a very short period of time the Foundation managed to set up several service points and thus enlarged its operations extensively. In the same year, besides its standardized group loan product, Constanta brought in additional loan products: an individual, and agricultural loans and loans for small tourism development, enabling those clients who substantially developed their business and maintained good credit ratings to gradate either to advanced group loan product or to move to individual loan.