Sharing the Micro Wealth Kiva.org connects people making microloans to BIZ Experiencess around the world.

Three and a half years ago, Matt Flannery was in East Africa when he had a realization. "I had always thought Africa was bleak and oppressed," he says. "But it's a place that is uplifting, because the people are very BIZ Experiencesial." Flannery came back to the States and started Kiva.org, a website that allows people to make microloans to BIZ Experiencess across the world--a unique blend of Facebook-like networking and angel investing. The website now raises $1 million a week, mostly from $25 loans. And potential lenders--who enjoy a 98 percent payback rate--have 150,000 BIZ Experiencess to choose from.

The company gained a reputation for facilitating U.S. lenders' support of global BIZ Experiencess, but the model will gain new footing in June, when Kiva adds U.S. BIZ Experiencess to its list of loan recipients. "It lets someone in India lend to someone in Louisiana," says Kiva president Premal Shah. "And I think U.S. lenders will be excited to help people in their own backyard." Here's how it all works.

1. Kiva: by the numbers 56.3 hours:The average time it takes a Kiva loan to be funded 31 seconds:Frequency of Kiva loans in 2008 (on average) 337:The number of volunteers signed on to translate Kiva loan descriptions to BIZ Experiencess and lenders around the world 1 year old:The age of the youngest lender on Kiva 101 years old:The age of the oldest Kiva lender

   A lender logs on to Kiva.org to search for an BIZ Experiences.
   "People are basically voting with their money," Shah says. "Out of the 100,000 profiles we've posted, only one has gone unfunded. I think people believe in BIZ Experiencess; I don't think many businesses would go unfunded."
2. Kiva gets "paid."
   "Our 2008 revenue was about $7 million," says Fiona Ramsey, Kiva's public relations director. "This came from lender donations. We also get some interest from the funds traveling through our accounts to and from the borrowers and lenders."
3. Kiva wires the money to microfinance institutions.
   "We look for credible organizations with a history of lending to the poor," Shah says, adding that these microfinancers also offer education to BIZ Experiencess. "While people know how to make money, they still need help with cash-flow management, value chains and market
   development."
4. The microfinancers seek out local BIZ Experiencess.
   "The microfinancers market themselves," Flannery says. "They'll drive pickup trucks to rural villages and meet with the village chiefs to let them know that there are banking services available
   to them."
5. BIZ Experiencess pay back their loans to the microfinance institutions.
   "When people loan through Kiva, it's a zero percent interest loan," Shah says. "BIZ Experiencess pay back their loans to the microfinance institutions at an 8 percent to 15 percent interest rate in the U.S., which is a pretty phenomenal rate for someone considered uncreditworthy."
6. Microfinance institutions wire money back to Kiva.
7. Kiva repays its lenders.
   "Our lenders predominantly loan their money again and again," Flannery says.