International 'Microlender' Sets Sights On Helping Hard-Hit At Home (AUDIO)

You may know the Web site Kiva.org for its groundbreaking use of microloans, which allow Americans to loan as little as $25 at a time to small business owners in developing countries. Now, NPR reported on Tuesday, Kiva has set its sights on helping hard-pressed entrepreneurs at home.

"Even before the credit crunch, small business loans were hard," said Premal Shah, the president of the San Francisco-based Web site. "Post credit crunch it's really, really hard. So, Kiva started thinking, 'Wow, we're allowing people in the developing world to request loans, why not un-crunch America and allow people here in the U.S. to request loans and see if the Internet community wants to fund them.'"

Kiva loans are a wonderful alternative for small business owners who have to overcome obstacles like buying large equipment without credit. But the decision to start loaning domestically has some Kiva lenders questioning the site and its mission to alleviate poverty.

"There are over 2 billion people in the world who live in extreme poverty," said Tom Behan, a retired marketing executive in Seattle. "Poverty is defined by the U.N. as trying to survive on less than $2 a day.

"It also means they don't have access to basic necessities that we have here in the U.S. ... and the services of thousands, maybe hundreds of thousands of religious and nonprofit groups that are dealing with every kind of need."

Listen to the NPR's story about Kiva.org and one of the American small business owners the site has helped:

What do you think about extending domestically the same kind of loans that poor business owners can receive abroad?

You can learn more about how Kiva works and even find a small business owner to loan to at Kiva.org.

Comments

[Solja]

I'm glad they have opened up to US businesses BEFORE we lose them all and our country starts looking like a 3rd world country.

Anyone who doesn't want US small businesses to gain access to much needed funding is simply unAmerican. WE COME FIRST, ALWAYS.

[patsijean]

I am a Kiva lender and have contributed my $25 each to 6 loan requests by entrepreneurs in 6 countries-- countries that do not have the resources that we have in the US. $25 in Bosnia goes a long way, not so much here. The payback rate has been 100% so far and I see no reason why that will not continue. I prefer that Kiva stay out of the US. One only needs to visit the Kiva site and read about the people applying for loans to understand. Kiva is one great program.

[PressPassTV]

Awesome! This is the kind of support that communities need right now. Organizations like Reflect and Strengthen, who build community and support among young women, or provide other critical community services, have been forced to cut back programming or shut their doors since the recession began.

http://www.youtube.com/watch?v=rgKDTlDKY6c&feature=channel_page