Kiva and the Micro-Lending Boom in California

California is in the midst of a micro-lending boom, driven by the rise of internet-based crowdfunding sites, including Kiva, Kickstarter, Indiegogo, and RocketHub.

The micro lending sites are opening new lending markets, in peer to peer lending. They are building new ties between lenders and California micro-businesses, with the lender more of a business development partner than a passive lender.

Micro-lending for years has long been an economic development strategy of community training and economic development agencies in California. In the old days of micro-lending—that is pre-early 2000s—micro-lending consisted often of private foundations or wealthy private individuals providing funds for nonprofit intermediaries to disperse.

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