Monday, May 19, 2008  

EditMe made its 101st Kiva loan today as part of our ongoing lending program. Since October 2007, EditMe has made at least two new Kiva loans per week, and has recycled the 22 loans that have been paid back into additional loans. Deferred revenue from customer's 6 and 12 month prepayments help to fund these loans, and EditMe donates 10% of each loan made to Kiva for operational expenses.

So far, this represents a total outlay of $2777.50. Though it may not seem like much, this has helped more than 100 entrepreneurs in developing countries to start or grow their businesses. Of these 101 loans, there has been 0% default and 0% delinquency. Compare that to the SBA default rate of 17%.

Part of this success is due to the "group" nature of many of these loans. As Kiva explains on their web site:

Group loans are a powerful innovation in microfinance, because they are often less expensive for partners to manage in terms of time and resources.  In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a 'group guarantee' (sometimes called 'joint liability'). Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults.

EditMe's 101st loan went to Señor de Lagunas Group. This is a group of women who rent grocery and supply stores in the commercial area of Raúl Salmón street in El Alto, Bolivia. As the group's Kiva page explains:

The “Señor de Lagunas” group has worked responsibly with Pro-Mujer for 10 years. Almost all the members have businesses selling supplies and food, which they acquire at wholesale prices to resell at retail prices. They need capital to rent stores on the Raúl Salmón street in El Alto, as this is a commercial zone suitable to selling these products, thereby guaranteeing greater income in order to support their families. For example, Mrs. Catita, a widow, is alone and responsible for 7 children, so she works with all her might to earn sufficient income for the well-being of her family.

Also see EditMe's Kiva lender page and previous updates #1, #2 and #3.