The notion of neighbors helping neighbors financially seems as mythical as the townsfolk of Bedford Falls’ rallying behind George Bailey (Jimmy Stewart) in “Its a Wonderful Life.” Yet, reality might be trumping fiction online as a number of micro-lending services match individual borrowers with individual lenders. This trend was chronicled in yesterday’s Wall St. Journal and by this blog back in August. The Journal article listed a number of firms including:
The article outlines how each of these websites are starting to pick up the slack left by ever stingier banks. On the far end of this good lending spectrum which the WSJ didn’t cover is an organization called Kiva which helps people help entrepreneurs in developing nations. Here’s a bit of info from Kiva’s website.
Kiva lets you connect with and loan money to unique entrepreneurs in the developing world. By choosing a loan on Kiva, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the entrepreneur you’ve sponsored. As loans are repaid, you get your loan money back.
While Shakespeare cautioned “neither a borrower or lender be,” the seeds of a bountiful future for many are being spread via a different kind of green goodness–cold hard cash. Spreading money to the right places can yield bountiful results. And this, for both the giver and the receiver, is a very good thing.