"I often heard from people that the poor need to pull themselves up by their bootstraps," said Amihan Makayan, senior in the Hutchins program. "The reality is, in many places in the world, people do not even have boots!"
Eager to help others succeed, Makayan has created the SSU Kiva Team as her senior project and a challenge to students to reach out and help others succeed.
"I think it's really great and easy to loan," said Makayan. "Any individual can review the recipients' needs and decide if it's something that they want to support."
According to their website, Kiva is the world's first person-to-person micro-lending website.
It allows entrepreneurs in poor countries to apply for small loans, which they would otherwise be unable to receive. Since they live in such poverty, business owners and entrepreneurs lack the collateral and credit history necessary to qualify for a loan. The ease and simplicity of lending with Kiva is the essence of its success.
Based in San Francisco, the nonprofit company depends on lenders to provide loans as small as $25. Anyone can register as a lender with Kiva on their website and browse the ads of entrepreneurs around the world.
Men and women from various third world countries post ads asking for loans ranging from $100 to $1500 and above. Lenders browse the ads and contribute a minimum of $25 to any loan they like. Businesses vary from grocery stores to hair salons, Internet cafes to agriculture.
Most business owners are looking to invest in or expand their businesses, while others need a form of transportation or need to make structural repairs.
When a lender decides on a recipient, PayPal is used for payment. Once Kiva collects the funds, they are disbursed by one of the company's microfinance partners, who often provide training and other opportunities to increase chances of success.
The lender can track the entrepreneur's progress through journal entries and photos. Over time, the entrepreneur repays the loan and the lender receives full reimbursement. Once lenders are reimbursed, they can re-invest in another entrepreneur, donate to Kiva, or withdraw the funds.
"I am currently loaning to people from the Philippines, Cambodia, Peru, Dominican Republic, Lebanon and Ghana," said Makayan, who heard about the website from a friend.
"I was born and grew up in a third world country surrounded by poverty," said Makayan. "My grandmother was a farmer's daughter who didn't finish grade school, but was an entrepreneur."
Makayan's grandmother began by simply selling foods from her own house, eventually turning it into a bakery.
With her profits, she bought land and began to grow and sell fruits. As her growing business became even more profitable, she bought more land and eventually owned coconut plantations and a processing plant.
"By the time I was born, we were relatively wealthy and spared from the harsh economic realities facing many Filipinos," said Makayan.
Many are not so lucky but also do not want to rely on hand-outs. Many entrepreneurs receiving loans from Kiva see it as a to help themselves with dignity.
"The project matters to me because there are many people in the world like my grandmother that were born under very bad circumstances, but given a little bit of a push," said Makayan. "It's not a hand out, but a little support, with which they can surprise everyone around them."
Kiva has received a lot of attention across a wide spectrum of media.
The company has been featured in the Wall Street Journal and the San Francisco Chronicle, on the Oprah Show, on various news stations and even in magazines such as Glamour and Cosmopolitan, making it an even more popular way for average people to help others around the world.
"I love how it makes me feel," said Ann Carranza, a senior in the Hutchins program. "If we can give people a hand up as opposed to a hand out, I would do it any day."
Carranza is currently loaning to Ruth Viridiana Zamora, a woman in Mexico who is working with her mother to stock their store.
"My husband is from Mexico, so I am familiar with these little stores," said Carranza.
Zamora originally asked for a $725 loan, $25 of which Carranza provided. The fact that the loans do not accrue interest and are designed with affordable terms of repayment appealed to Carranza. Zamora will repay her loan over 15 months, beginning on May 15.
Carranza believes that the human service Kiva provides is wonderful. She urges students to contribute, and if $25 is too much for college students, she suggests pooling together with several friends.
"Get five friends together, each contributing just $5, and you will be able to sponsor someone," said Carranza. "Kiva is very searchable, so you can choose something that resonates with you."
Lenders are able to narrow their search for a recipient by gender, type of work, or region of the world. Lenders can also join a team or start their own team.
"I started the team to encourage other students to learn about microcredit and to track how much impact SSU students can make collectively," said Makayan.
As the captain, Makayan does not receive any portion of profit, but she is able to track the team's progress.
"We are all interconnected," said Makayan, who cited poverty issues as a cause for overpopulation, illegal immigration, environmental issues, and more. "Wouldn't it be great to be part of the real solution?"
Makayan hopes that students will see the positive impact of micro-lending and join the SSU Kiva Team in an effort to make a real difference in the world.
"Once you start lending, it becomes fun, and suddenly you are questioning if the money you're spending on dinner out is not better spent helping a single mother in Guatemala who is borrowing $125 to buy a new loom and fabric," said Makayan.
To join the SSU Kiva team, or for more information, visit www.Kiva.org
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