Slate recently reviewed various types of micro-lending organizations. As Brady previously posted, micro-lending has a very low default rate, in Grameen Bank’s case in particular as low as 2% (compared to 4.5% default on the first two years of student loan repayment). As consumer consciousness becomes more aware of social return, through such ideas as triple bottom lines and Fair Trade, it is not surprising that micro-financing also finds popularity and support. Micro-financing fills a niche in providing very low loans to the asset-less poor, a concept not considered viable by standard banking institutions.

Jude Stewart’s reviews are based on a rating system which considers user experience, trust, and effectiveness and includes details about each. There is a selection ranging from general donations to organizations which then determine how the funds are distributed, to groups which allow direct lender / recipient relations. The common factor through each is the low dollar amount, both in what is being requested for the loan and required minimum donations (generally $5 - $25).
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Kiva, a Swahili word meaning “agreement” or “unity”, is an amazing microfinance website that allows you to lend directly to people in need. As Brady posted previously, microfinancing is the loaning of small amounts of money to the asset-less poor. Matthew and Jessica Flannery, the founders of Kiva knew that while ” there were many microfinance institutions lending money to the working poor all over the world, none of them allowed average-income individuals to lend smaller amounts of money to someone else.” The lending minimum is only $25, and you are able to choose the exact person and business you wish your loan to benefit. As to repayment,

The chances of being fully repaid are pretty high. Here are some statistics:

* So far, Kiva has experienced a 100% repayment rate on all businesses with completed loan terms.
* Prior to Kiva, our Field Partners have historically experienced a >96% repayment rate with the poor they serve.
* In the past 30 years, over 100 million of the world’s poor have received a micro-loan and demonstrated a >95% repayment rate.

There are lists of the people, their business, their country and how they will use the money. 100% of the loan amount goes to the entrepreneur, Kiva is sponsored only through additional donations. You are able to view the amount already contributed until the total is reached, after which periodic journals are sent detailing the entrepreneurs progress. Once the loan is fully repaid, typically within 6-12 months, you may withdrawal the funds or reinvest. Kiva works with field partners in different countries who are in the communities working with the entrepreneurs to ensure success. Read more…

SustainAbility, started in 1987 to advise companies on sustainable business practices, has launched an online database of corporate sustainability reports called ‘Learn from the Leaders.’ The database’s interface is easy to use, if expensive. An annual subscription to the service is $7,500 with a discount for companies based in emerging economies. A one week free trial is available, though, so you can go check it out.

The information is well worth the price of admission, however, especially for companies looking to join the leading organizations in the invigorated corporate sustainability movement. The database contains strategies and best practices in well-defined aspects of sustainability ranging from governance and strategy to assurance and reporting standards. This is a well-designed and robust tool that will surely prove indispensable to many corporations and organizations.

A shop called Gifted Hands Gift Shop Program, at Crown Center in Kansas City, has just been brought to my attention. This is an inspiring example of someone finding a unique way to use business to help others. Their focus is the prevention of domestic violence, giving girls and young women education to help them recognize not only when friends are in abusive relationships, but also how to avoid becoming ensnared in one themselves. Their class teaches:
* The proper definition of domestic violence
* Characteristics of an abuser or “red flags”
* Characteristics of a victim
* Dynamics of the power and control cycle of domestic violence
* Definition of a healthy self-image
* Definition of a healthy relationship/What a healthy relationship looks like, sounds like, feels like…
* Economic empowerment through handcrafting skills
* Self-esteem enrichment through creative expression
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