According to Jason Riggs, communications director for Kiva, microloans play a “pivotal role” for some small businesses, providing not just funding, but also financial literacy training and other services. Kiva is a nonprofit organization founded in 2005 that has issued $341 million in loans over the past seven years. It’s also worth noting that Kiva has a nearly 99 percent repayment rate.
“You don’t see larger banking institutions providing these sorts of loan services with the loans,” Riggs adds. “This is ultimately why microloaning is so important. It provides the means, skills and education to be successful.”