Loans that change lives

Half the world’s population lives on $2 a day, but many of those individuals are excluded from traditional means of financial support because they are self-employed or hover just above the poverty line. For them, a loan of as little as $100 can make a significant difference.

Kiva helps bridge this gap and fight poverty by connecting individual donors to owners of small businesses who need microloans. Kiva does this by partnering with other organizations to identify those in need of assistance. Through Kiva’s Web site, donors are able to choose a business to sponsor and can immediately make contributions in increments of as little as $25 toward the amount the business needs.

Unlike other organizations, the support individuals provide through Kiva is a loan, not a donation. All money contributed online goes directly to the sponsored business, and the business repays the loan within a set amount of time. Throughout the loan repayment, donors can communicate directly with the business they choose to sponsor. They also receive regular e-mail updates on progress.

With its unique focus on reaching people in rural areas who have few opportunities to receive microloans, Kiva is giving entrepreneurs throughout developing countries access to the capital they need to lift themselves out of poverty.

www.kiva.org