Have you heard of microfinance? Simply put, it means small loans for those unable to secure formal loans. With as little as $25.00 you can help struggling entrepreneurs in poor areas of the world realize the dream of owning a small business.
Kiva is different from charities that help people connect with others they choose to sponsor. Although Kiva.org does connect sponsors with individuals in need, the money that changes hands is in the form of small business loans,in small dollar amounts.
For the sum of $25.00, a person in an impoverished area will have a chance to start a business. Of course, it generally costs more get a business going, but with a number of people willing to loan money, the dream may be realized sooner than later. Many of those whom are helped by a system such as Kiva are not eligible for other types of loans.
By using the Internet as its framework, Kiva is able to keep overhead costs down thus passing along money to those who need it. Email updates can be provided so lenders can follow the progress of businesses they have sponsored.
Making such a loan would be a nice way to say Happy Holidays or you can give a gift certificate to someone you care about who would enjoy the experience. One small loan can change the lives of those working to start a business and can also help their families and communities.
Kiva will be featured on CNBC’s Business Nation tonight, so check your local listings if you would like to learn more about this opportunity.