Matt and Jessica Flannery were living in Africa when they saw how enterprising people were when it came to setting up businesses with almost no money. It gave them the idea to set up an on-line micro-loan system that has so far allocated $10m to budding entrepreneurs around the world.

As a former vet of the Band Aid era, I can wholeheartedly say that Kiva is cool, sustainable and not in the least way a charity. They have my vote, and my money.

Yoh, kiva, a perfect formula to make a difference

With the help of Paypal, online organisation Kiva, has bridged the gap between the haves and have nots but want to do something about it. At last, they have made it easy for us comfortable individuals in the West to finance micro-loans for enterprising folks throughout the Third World. That's right, you finance and get back your money, (not donate) and you can support a small business ventures overseas on a proper business footing.

Check out the Kiva home page and all becomes clear. You look through a list of people all round the world with projects in need of funding. Pick the person you want to support. In a few clicks your $25 is transferred to Kiva and immediately allocated to that person via Kiva's partner micro-loan company in the field. Congratulations, you just helped launch a small business venture.

And most important, for all the cynics out there, this is not a donation into a vacuum deal. You will get your money back when the loan is repaid at the end of the year! What is not to like?!!

Risk v reward

In principle, you get your principal "loan" back in full. That makes for a hell of a twist, or a massive deviation away from a traditional charitable donation. Participating in a Kiva project is a bit like sending back a Remembrance Day poppy or a Red Cross badge at year end and getting a full refund!

Kiva are very business-like though, and ask you to be aware of the inherent risk of a micro business loan. ie

Of the $2,027,035 of loans with completed loan terms, the default rate is 0.2%. However, past repayment performance does not guarantee future results. When you lend money, you may lose all or some of your principal. You should be aware of the different types of risk and find the right loan option for you, with respect to repayment risk and social return. Quote.

In the current atmosphere of foreclosure and delinquency rates in America, risk is not quite the word I would be using.

Kiva community

Stick around the site, and not only can you see exactly where your money has gone, but you can keep uptodate with progress from the real human being benefitting from the loan.



The program is all about linking and participation, so you also see the other side of the micro-loan equation, as in the lenders, their circumstances, their motivation to lend some cash in $25 blocks. Yes $25 blocks! one or several as part of an on-going plan, as you wish.

Check 'em out. Oprah has and she liked it, and so did News Week... and Mrs Ed and me are enthused too. Enough said. And if you are looking for ideas for Christmas, forget my online stores for meaningless humor books and DVDs. Send some Kiva gift certificates. They are all very iTunes-esque - as in, easy and personal, in an online gifting kind of way. Click on, it is addictive and about the most fun you can have with a keyboard.

K is for change

I have a feeling this Kiva deal is going to change the world, seriously. Kiva will prove to others who doubt the motives of the West, that us everyday folks aren't all tarnished with a myopic multi-national corporate brush. When these hands-off micro loans take root, it won't take long for the word to spread around the globe that everyday folks in America and Europe do have a heart, don't give money with strings attached, and do like to see other people doing well off their own efforts.

Remember, Kiva is cool and show-cases real people in need of a few hundred bucks' loan so they can provide for themselves forever, not just a day. This is the classic lend them money for fishing lines and they can eat for ever deal. Clickety click.

(Now, where's the map. I need to double check that Namibia is where I think it is.)