How Kiva Works

I've chosen to post two separate blogs because this is a lot of info. I'd like to give an update on our Kiva loan. As you know, we pledged to donate a portion of our profits to Kiva.org, an online organization that allows you to loan money to business owners in developing countries (impoverished countries don't have the financial means to provide loans to individuals to begin or grow a business, this creates a vicious cycle of poverty that is almost impossible to break out of without outside help, which is why we believe Kiva is such an amazing concept). We're talking loans as low as a few hundred dollars to a few thousand, any amount of which someone can donate (you can even lend as low as 10 dollars). Kiva chooses these outstanding entrepreneurs based on the recommendations of existing microfinance institions in severely impoverished areas, who are familiar with the individual's background, both personal and business. Kiva.org then provides all this info on their website, kiva.org, for viewing. In short, the process goes like this:
1. Lenders pick a business on kiva.org and make a loan using their credit card.
2. Kiva transfers the funds to local partners who disburse the funds to the business owner.
3. Over time, repayments are made by business owner who also provides business updates
4. Funds are returend to lender, who then may re-lend the amount or withdraw (we pledge to always re-lend).

So that's how it works...stay tuned to find out more about our sponsored business owner.