Kiva

Guide Note

Through the U.S. based non-profit organization, Kiva, donors can make loans to individuals in third world countries for small business start-ups or expansions. These loans are called microloans, as the amounts needed are often smaller than traditional lenders will fund, especially if a borrower has little or no collateral. The goal of Kiva is to reduce poverty by giving poor people in developing countries the resources they need to earn a better living.

The Kiva.org web site allows potential lenders to search through pictures and descriptions of borrowers and choose who they would like to fund. When enough money has been collected to fulfill the borrower's request (a process that often happens in a matter of hours), the money is transferred via PayPal to Kiva's field partners where it is dispersed to the entrepreneurs. Field partners are also responsible for managing and collecting the loans. Once repayment is complete, the loan is transferred back to Kiva through PayPal and returned to the original lenders. Because Kiva is a non-profit organization, PayPal waives all fees associated with the money transfers.

Fast Facts

1. 501(c)(3) non-profit organization organization
2. Launched: October 2005
3. Founders: Matt and Jessica Flannery
4. President: Premal Shah
5. Headquarters: San Francisco, California
6. Loan duration: Usually 6 to 12 months
7. Loans successfully repaid: Over 99%
8. Minimum loan amount: $25
9. Fund type: Private Investor
10. Loans made through Kiva: Over $27 million
11. Average loan size: About $500
12. Entrepreneurs funded: Over 39,000
13. Lenders using Kiva: Over 275,000
14. Kiva means "unity" or "agreement" in Swahili