Microfinance in the US gets a boost

Caption: Viki Sinipata is one of the microentrepreneurs whose loan was funded by Kiva.org users. Her business offers support and companionship to the elderly.

Viki Sinipata is one of the microentrepreneurs whose loan was funded by Kiva.org users. Her business offers support and companionship to the elderly.

Microfinance in the US gets a boost

From: Rachel Dornhelm
Length: 00:03:53

A number of Web sites help Internet users fund entrepreneurs from developing countries. Now one of the biggest, Kiva.org, is allowing users to make microloans to small business owners in the U.S. Read the full description.

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Piece Description

Microfinance is a big focus in the international development world. It means getting small loans and financial services to the poor and underserved, generally in the developing world. But as the credit markets in the US freeze, interest in microloans in the United States is on the rise. People who were previously bankable are turning to these comunity institutions that lend on average $7,000.

Now, one of the high profile websites that helps individual Internet users loan to microentrepreneurs from Kenya to Cambodia is getting involved in the US. The site Kiva.org has started posting the profiles of US small business owners, to raise capital for their loans. Even the owner of Kiva says he's unsure how this social experiment will play out.

Broadcast History

Versions have aired on Marketplace (written around a specific news peg) and VOA

Transcript

INTRO: Microfinance is a big focus in the international development world. It’s the process of getting small loans and financial services to the poor and underserved. And there are now a number of websites that help Internet users fund entrepreneurs from Kenya to Cambodia. Now, one of the biggest, Kiva.org, will allow users to make microloans to small business owners in the United States. Rachel Dornhelm reports.

TEXT: In January, Vika Sinipata fulfilled a long time dream. She opened her own business. Assisting the elderly.

Sinipata 1 “Usually in the afternoon I just make her tea.” [SFX OF STARTING WATER, fade under]

TEXT: On this day, she is at a client’s house, near San Francisco.

Sinipata 1a “And then I make her sandwiches” [fade under]

TEXT: Sinipata got the idea for the business after taking care of her own relatives. What she couldn’t get was a line of credit.

Sinipata...
Read the full transcript