Microfinance, Kiva, and You

One of the biggest problems facing people in developing countries who are trying to get out of poverty is the first step out of the hole. Often enough, if a person had just a little capital to get themselves started, they could do the rest. Enter micro-loans, one of the most creative poverty reduction tools in the last 50 years. It has been very successful in many parts of the world, and provides those in poverty with that hand up (not hand out) that they need. But how can you and I be a part of all this? Enter Kiva:

This is a big deal. We're talking about letting the average Joe get involved with making a serious difference in the battle to eliminate severe or absolute poverty across the globe. You better get excited. Kiva (which is Swahili for unity) lets you loan to the working poor through unique small businesses in the developing world. By choosing a business on Kiva.org, you can "sponsor a business" and help the world's working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you've sponsored. As loans are repaid, you get your loan money back.

Kiva partners with existing microfinance institutions. In doing so, they gain access to outstanding entrepreneurs from impoverished communities world-wide. Their partners are experts in choosing qualified borrowers. That said, they are usually short on funds. Through Kiva.org, partners upload their borrower profiles directly to the site so you can lend to them.

This is legit (endorsed by The Wall Street Journal, BusinessWeek, the BBC, The Village Voice, and CNNMoney), unspeakably exciting, and has jaw-dropping potential.

www.kiva.org