From the Curious Cat Investing and Economics Blog: Microfinancing Entrepreneurs:

Kiva is another interesting organization that lets you loan directly to an entrepreneur of your choice. In fact, I have just placed $350 in loans to 5 business entrepreneurs (in Kenya, Mexico, Cameroon and Azerbaijan) - and a made a $50 donation to Kiva. Kiva provides loans through partners (operating in the countries) to the entrepreneurs. Those partners do charge the entrepreneurs interest (to fund the operations of the lending partner). Kiva pays the principle back to you but does not pay interest. And if the entrepreneur defaults then you do not get your principle paid back (in other words you lose the money you loaned). I plan to just recycle repaid loans to other entrepreneurs.

The Kiva web site does a great job of using the internet to create a direct connection between those with money to lend and those in need of money to grow a business.

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