Kiva, an international Microlending site, has an online Microlending platform for businesses within the United States. The Southwest Initiative Foundation (SWIF), as one of Minnesota’s leading microlending organizations, has partnered with Kiva to provide crowd-funding to southwest Minnesota.
Crowd-funding is the newest wave in financing small business projects in a new and different way. Using crowd-funding will directly involve friends, family, community members, and beyond. The idea is based on small loans making a big impact in the lives of business owners and the communities in which they live.
Lenders (anyone) can log into the Kiva website and search for a business project and loan $25.00 at a time. Lenders can loan more if they like, but the idea is to promote the idea on social media sites which will provide an opportunity for others to get involved in the project.
The money pledged to a business project is an interest free loan that the business owner will pay back. One of the goals is that lenders will look at this as a way to help others; it is not a gift, so once this loan is paid in full, lenders can look for another project to fund. A typical lender on Kiva has eight active loans going on at one time.
Empower people around the world $25 at a time!
The Foundation believes they have an important role to play in this new and innovative way of supporting local projects.