1. Micro-Lending

2. What is micro-lending? Microcredit is the extension of very small loans (microloans) to those in poverty designed to spur entrepreneurship. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit.

3. Why microcredit? Microcredit emphasizes building capacity of a micro-entrepreneur, employment generation, trust building, and help to the micro- entrepreneur on initiation and during difficult times. Microcredit is a tool for socioeconomic development.

4. Using the Web to micro-lend Multiple Internet-based organizations have developed platforms that facilitate a modified form of peer-to- peer lending where a loan is not made in the form of a single, direct loan, but as the aggregation of a number of smaller loans. There are several ways by which the general public can participate in alleviating poverty using Web platforms.

5. Small Loans. Big Impact. Can a $50 loan really make a significant impact on a persons life? Absolutely! While $50 may seem small, it is important to remember that the working poor typically live on less than $2 a day. To them, a $50 loan is roughly equivalent to an entire months income. With that extra income, they can buy supplies or equipment that can help them start new businesses or earn more income from their existing businesses.

6. Kiva empowers individuals to lend to an entrepreneur across the globe. By combining microfinance with the Internet, Kiva is creating a global community of people connected through lending. As of November 2009, Kiva has facilitated over $100 million in loans. Kiva's mission is to connect people, through lending, for the sake of alleviating poverty.

7. "Kiva" is a Swahili word which means "unity" or "agreement". Kiva was co-founded by Matt and Jessica Flannery, when they were 28 and 27 respectively. PayPal provides Kiva with free payment processing. Kiva's is the first account at PayPal with a free payment processing agreement. Anyone with an email address can create a Kiva Account. Anyone who can make payments using a credit card or PayPal account can be a Kiva Lender. You can lend as part of any number of teams on the Kiva website, such as the CSU team or the Stuff You Should Know Podcast team

8. How Kiva Works

9. Kiva was born of the following beliefs: People are by nature generous, and will help others if given the opportunity to do so in a transparent, accountable way. The poor are highly motivated and can be very successful when given an opportunity. By connecting people Kiva hopes to create relationships beyond financial transactions, and build a global community expressing support and encouragement of one another.

10. How Works 1)It all starts with our Field Partners, which are microfinance institutions operating around the world. 2) The Field Partner uploads the entrepreneurs profile to Kivas website. 3) Lenders like you browse the entrepreneurs profiles and choose someone to lend to, using PayPal or their credit cards (as little as $25!). 4) Kiva provides the funds to our Field Partners. 5) Over time, the entrepreneur repays her loan. 6) When lenders get their money back, they can re-lend to another entrepreneur, donate their funds to Kiva (to cover operational expenses), or withdraw their funds to their PayPal accounts.

11. Microloans key objectives are the relief of poverty, the advancement of education and the relief of sickness in the developing world through the provision of microloans and grants. The services are charitable and not-for- profit. Microloan provides small loans to groups of women across sub-Saharan Africa. Microloan is committed to helping the poorest of the poor to help themselves in order to change their lives for the better.

13. LendforPeace.org is a not-for-profit Internet platform that allows individuals like you to make small loans to specific micro-entrepreneurs in the Palestinian Territories. Using the site, you can make a loan directly to a vetted micro-entrepreneur in the West Bank. LendforPeace work with US government-approved microfinance institutions on the ground to deliver your capital along with training and guidance to low-income individuals who are interested in starting or expanding their own small businesses. Founded by two Jews and two Palestinians, LendforPeace.org was created to enable people of all faiths and backgrounds to make a tangible difference in the Israeli-Palestinian conflict. Our mission is to use micro-lending to promote economic opportunity and political stability in the Middle East.

14. Pro Mujer fights poverty by establishing sustainable microfinance organizations that provide an integrated package of financial and human development services that women require to build and improve their small businesses. With a steady income, good health, and improved self-esteem, women are empowered to become agents of change and lift themselves and their families out of poverty. Pro Mujer currently operates in Argentina, Bolivia, Mexico, Nicaragua and Peru, and has plans to expand into other countries in Latin America. US$159 million in loans were disbursed in 2009. Currently serves 202,000 clients and approximately one million children and extended family members. Pro Mujer provides poor women in Latin America with the means to build livelihoods for themselves and futures for their families through microfinance, business training, and healthcare support.

16. MicroPlace is a social business owned by eBay. MicroPlace wants to alleviate global poverty by offering investments that enable loans to hardworking poor people. What's a social business? It's a financially sustainable company that has a social mission. A loan of a $20 can allow a poor woman to start a business and work her way out of poverty. In many countries, organizations that function like banks make loans to the poor. These organizations need funds to lend to the poor. Your investment helps fund these organizations. You are paid a return for the funds you invest. You can fight poverty and get your money back with interest! MicroPlaces mission is to help alleviate global poverty by enabling everyday people to make investments in the worlds working poor. *This website gives you back your money back with interest, unlike the other sites which are interest-free, which do you think is more helpful to those in need?

17. Created by Bonnie Sizer Resident Assistant Colorado State University See slide notes for display tips and do not print this page!