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Sure, we all feel like we could use a loan--but we can all offer them, too, by investing in microfinance. Here's the deal: you donate or invest a small amount of money and your lender funnels it to entrepreneurs in impoverished areas who wouldn't otherwise be able to secure funding for their small businesses. As their business expands, they pay back the loan; either to you, with interest, or to the lender, who rolls it into new loans for other business owners. Whether you're trying to support artisans around the world—or just find a unique gift for the pickiest person on your list—check out these lenders to see which causes catch your interest.
1. Women's Microfinance Initiative
The brainchild of Maryland residents Robyn Nietert and Betsy Gordon, Women's Microfinance Initiative started in 2008—and now, less than two years later, they've funded 680 loans to 329 women in Uganda with no defaults. Projects include raising turkeys, growing eggplants, selling soda, and opening a cafe. WMI doesn't tell the women what to do with the money—other than, "start a business"&mdashand loan amounts range from $50-$150 with a 20 percent annual interest rate.
2. Microplace
Microplace, a branch of eBay, lets you search for a borrower based on the level of poverty, the focus of the loan (women, green businesses, rural areas, Fair Trade), the number of institutions you're lending too, geographic region, and return on your investment. Lend to Fair Trade coffee farmers in Tanzania, small business starters in Texas, or developers in southern Brazil—and get your initial investment (plus interest) back when your borrower repays the loan.
3. Kiva
When you choose a project through Kiva, you can see exactly who you're donating to, how close they are to their goal, and what they plan to do with the money—so whether you'd like to help Simon Matiko with the last 26 percent of his loan for improvements to his poultry farm; Chey Sarom with the 47 percent she needs to fund her embroidery business; or Jackeline Meza Cango with the remaining 46 percent of a loan for her catering company, there's a person—and a business—you can connect with.
4. Lend for Peace
While Lend for Peace works similarly to the other lenders on this list—you distribute as little as $25 to a micro-entrepreneur and, when it's paid back, you can withdraw your investment or re-lend it—the business and people supported by the loans are all residents of Palestinian Territories. The company hopes that economic opportunities in the region will lead to political stability—and peace; borrowers include grocers, farmers, and shopkeepers.
5. United Prosperity
A microloan with United Prosperity doesn't go directly to your entrepreneur; instead, the company consolidates funds from investors, uses them as guarantees for banks near the recipient you've chosen, and then relies on the bank to offer a loan for more than the guarantee—for example, if United Prosperity receives $600 in funding for retail shop owner Rinku Devi in India, the bank will loan her $1,091.91—and lenders get their money back when the loan is repaid.
6. World Vision Micro
World Vision has been offering microloans for more than 15 years to borrowers in almost 50 countries--and, in the last year alone, has created or improved 1 million jobs. From food stand owners and jewelry sellers in Mexico to grocers and bakery owners in Rwanda, you'll contribute to projects that improve and develop businesses all over the world with loans starting at $25—and once your loan is repaid, it's cycled back into the company's giving plan to help even more entrepreneurs.
7. World Concern
At World Concern, microloans are part of a bigger plan that offers education, clean water, medication, farm animals, and job training to people in poverty-stricken areas. Donate to business owners in Haiti, Bangladesh, and Bolivia—with loans starting at $65—to help pull communities out of financial difficulty.
More about Microfinance
16 Big Green Ideas We're Thankful For
TreeHugger Gift Guide: For the Philanthropist
Meet Robyn Nietert of the Women's Microfinance Initiative: Building Businesses, and Lives, One Loan at a Time
How to Choose a Green Charity
How to Go Green: In the Community
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