Comments on: Kiva Opens Up Lending to the US http://mykro.org/kiva-opens-up-lending-to-the-us/2009/06/ Just another WordPress site Thu, 26 Jan 2012 18:28:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Gina Harman http://mykro.org/kiva-opens-up-lending-to-the-us/2009/06/comment-page-1/#comment-29757 Gina Harman Thu, 11 Jun 2009 17:44:13 +0000 http://mykro.esmexecdesigns.net/?p=364#comment-29757 ACCION USA where I am the CEO is one of Kiva's partners. None of you who thinks this a bad idea is likely to see me as an "objective" voice. But there are some facts here that should be known: 1. Our loans are not interest free. 2. They are not made to those with access to the financial mainstream. They are made to the businesses on +Main Street so often mentioned these days - usually followed by the fact that banks no longer lend to them. The overwhelming majority of AUSA's clients (over 15 years of lending in the US) may have a bank account but they don't have access to capital. Banks don't lend to home-based businesses - we do and those businesses provide communities with day care services so people can go to work, and women an opportunity to take care of themselves and their families by owning a sewing machine or making tamales. Banks don't lend to start-ups - they require 3 years of experience (read with profit .) We do. Banks don't lend to those who have run a business successfully but haven't established a credit score in the US. But we do. Banks don't lend to women who can't establish an independent credit score because they don't have a lease or electric or phone company bill in their own names to prove they are able to pay. These facts don't argue against an equally impactful set of facts that there are millions of people around the globe who are starving. There are. But I hope they at least add some food for thought about just how easy it is for immigrants and minorities, women, to get their business capital needs met by US Banks and other Financial Services. ACCION USA where I am the CEO is one of Kiva’s partners. None of you who thinks this a bad idea is likely to see me as an “objective” voice. But there are some facts here that should be known: 1. Our loans are not interest free. 2. They are not made to those with
access to the financial mainstream. They are made to the businesses on +Main Street so often mentioned these days – usually followed by the fact that banks no longer lend to them. The overwhelming majority of AUSA’s clients (over 15 years of lending in the US) may have a bank account but they don’t have access to capital. Banks don’t lend to home-based businesses – we do and those businesses provide communities with day care services so people can go to work, and women an opportunity to take care of themselves and their families by owning a sewing machine or making tamales. Banks don’t lend to start-ups – they require 3 years of experience (read with profit .) We do. Banks don’t lend to those who have run a business successfully but haven’t established a credit score in the US. But we do. Banks don’t lend to women who can’t establish an independent credit score because they don’t have a lease or electric or phone company bill in their own names to prove they are able to pay.

These facts don’t argue against an equally impactful set of facts that there are millions of people around the globe who are starving. There are. But I hope they at least add some food for thought about just how easy it is for immigrants and minorities, women, to get their business capital needs met by US Banks and other Financial Services.

]]> By: Peter Frerichs http://mykro.org/kiva-opens-up-lending-to-the-us/2009/06/comment-page-1/#comment-29709 Peter Frerichs Thu, 11 Jun 2009 02:05:23 +0000 http://mykro.esmexecdesigns.net/?p=364#comment-29709 I agree with the author. This is an option. Nobody is forcing lending to the U.S. I'm of the opinion that if you have taken the time to get to know microfinance and have considered becoming a lendor, then you are more than likely a thoughtful person that is capable of rational decision-making. We should not look at a loan to a U.S. client as a missed opportunity for someone in a less developed country. This is not a clear link and pure conjecture at this stage in the game. Any market opening in the field in my opinion is a good thing. I agree with the author. This is an option. Nobody is forcing lending to the U.S. I’m of the opinion that if you have taken the time to get to know microfinance and have considered becoming a lendor, then you are more than likely a thoughtful person that is capable of rational decision-making. We should not look at a loan to a U.S. client as a missed opportunity for someone in a less developed country. This is not a clear link and pure conjecture at this stage in the game. Any market opening in the field in my opinion is a good thing.

]]>