In these times of financial crisis, one of the things that we are all learning…if we didn’t already know it…is that business runs on capital. But what if you’ve got a business that is so small that no bank is willing to bother with you? What if you are in a part of the world known for instability and no bank is willing to take the risk? Where do you go for the $500 that would make all of the difference in improving your business and enabling you to hire employees, and feed you family, and send your children to school?
You turn to microfinance organzations that make loans to businesses all over the world. Where do these micofinances organizations get money, well until recently the answer to that was wealthy philanthropists. But now small business owners all over the world can turn to people just like you and me through an organization called Kiva that matches donors to small business owners.
For just $25 you can change a business and through that business, you can change a family, a community, and with enough of us working together….the world.
And after your small business owner pays back your $25, you can take the money and spend it on a manicure or going to the movies….or you can lend it again. And again.

Please at least go take a look at Kiva and see if you might be willing to help with a loan of $25 or more. And if you go and there aren’t any available loans for funding, please know that it isn’t always that way. Sometimes there are 500 business owners waiting for loans. Recently, Kiva changed the policy of waiting until a loan was entirely repaid before freeing up the money that was paid back to withdraw or re-loan. This freed up a LOT of money to loan and there has been a temporary shortage of loans available for funding. But new loans are added all of the time and I am sure that the shortage of needs is only temporary so if Blog Action Day has things jumping on Kiva even more than it has in the last month, PLEASE check back.
What are the odds that these business owners will actually repay you? Pretty darn good actually. As of October 13, 2008, the average default rate is 1.34% with a delinquincy rate of 4.03%. You can increase those odds by choosing to lend in politically stable areas with microfinance organizations with well-established track records of payment. The choice is yours. You can make loans in particular sectors of the economy, to women, or men, or in particular countries or regions of the world. You can take a chance by loaning to those in Iraq or other troubled areas or choose a less troubled region.
Two more things. Would you let me “invite” you to Kiva? (Just email redneckwomandesign [at] yahoo [dot] com and I’ll get an official email invite to you from the Kiva website) I’d kind of like to see what impact my blog has made. And once you join, would you consider joining Team Catholic, the group of Catholic donors on Kiva? I know that there are more of us on Kiva than have actually joined.
Where else can you get such “interest” out of a small investment of $25? You can change a life, and when you are done changing one life, you can take the money and change another one. It feels good and I am not the only one who thinks so. Here is what one Team Catholic member says about her experience with Kiva
Although I just joined the Catholic team last month, I have been contributing to Kiva since March ‘07 and within 6 months time made 6 $25 loans. I have now grown those original loans to 22 by reloaning. What a wonderful way to give a gift that keeps on giving. I have also given 4 gift certificates to family members as birthday/Christmas gifts. Hopefully, these family members will spread the word too. I believe Kiva is a wonderful way for me to live my faith as a caring & compassionate Catholic. ~Nancy from Team Catholic
LORD, who may abide in your tent?
Who may dwell on your holy mountain?
Whoever walks without blame,
Doing what is right, speaking truth from the heart;
Who does not slander a neighbor,
Does no harm to another, never defames a friend;
Who disdains the wicked, but honors those who fear the LORD;
Who keeps an oath despite the cost,
Lends no money at interest, accepts no bribe against the innocent.
Whoever acts like this shall never be shaken.
Psalm 15
Other Blog Action Day Posts to check out:
Blog Action Day Haiku
Blog Action Day: Microfinancing - Money & Investing