Kiva.org – Give a little loan

The ability for the internet to directly connect people across the globe has begun a unique form of alleviating poverty called micro-lending.  Leading this revolution is San Francisco based Kiva.org, which provides person-to-person lending in the developing world.  This means that anyone can provide a loan of as little as $25 to a farmer is Cambodia or a grocery store owner in Samoa.  By harnessing the power of the internet Kiva has been able to attack poverty and global economic imbalances by providing direct economic stimulus to small business and entrepreneurs within the developing world.

Kiva has partnered with local organizations to identify potential recipients of a micro loan and then distribute these loans.  These entrepreneurs profiled on the Kiva website with descriptions of the individual or group, as well as their business and the proposed use for the funds.  Then users like you or me can select a business to make a loan to.  Loans typically end up being provided by a combination of lenders which make up the $500 to $1500 requested by the recipient.

Before Kiva there were few options for these small businesses to obtain loans, and if they could it would be at an obscene rate.  I encourage you to get started providing micro loans.  I’ve been loaning for over two years – see my lender page – and I’ve found it to be a great way to help those who are looking to develop a means to support themselves and their families.  You can learn more about the economics behind microfinancing, browse through profiles of small businesses looking for a loan, and of course fund a loan all at the Kiva.org website.  And if you have an AmEx card please vote for Kiva in the American Express Members Project – it could bring them a $1.5 million grant.