The Power of the $5 Loan
First, a little bit of background. Bayou Microfund is a Kiva Trustee and we recently had our first micro-entrepreneur funded through Kiva Zip. He raised $5,000 in less than 2 months and has already begun paying back his loan.
Click here to read more about Alex Colby, his business, and his plans for the future.
Two amazing details caught our attention during our first effort with Alex. One was the geographic range from which funding was received – not just from all over the US but overseas lenders as well. From Taiwan to Copenhagen and everywhere in between! The other interesting takeaway was the $5 loan.
When Kiva changed the minimum lending amount from $25 to $5, I was skeptical. However, the number of $5 lenders proved me wrong. Out of 199 lenders to Alex’s campaign, 106 of them were for $5 – over 50% was raised by the $5 lenders!
Those $5 loans came from folks who simply wanted to share and help an entrepreneur. They came from grandmothers and students, workers and other entrepreneurs.
I came to realize that these $5 micro-loans are like drops of rain, that fall and form a small stream that then becomes a river which gushes forth and launches an entrepreneur. This is the power of the crowd and crowdfunding.
There are many of us who always have wanted to give back and Kiva Zip offers this incredibly powerful way to do it. The most amazing part? Once the loan is repaid, you can re-loan the money again – and again and again!
Will you be a $5 lender or maybe loan a bit more to a micro-entrepreneur? Make a loan, change a life!
Our second campaign is now live – click here to fund Heather and Sweet Luxuries Boutique Bakery!
Heather from Sweet Luxuries Boutique Bakery