The San Francisco, California-based nonprofit website Kiva.org has announced plans to help promote small business and entrepreneurial development through micro-lending in the Gulf Coast region, particularly areas impacted by the BP oil spill and Hurricane Katrina.
The initiative has received a $1 million grant from credit card company Visa and hopes to increase awareness of micro-lending in the U.S. - the central lending basis in Kiva's network for funding-hungry entrepreneurs and investors. According to the Wall Street Journal, only one percent of Kiva's more than 400,000 registered entrepreneurs are based in the U.S.
"Awareness of micro-finance is really low here," Premal Shah, president of Kiva, told the Wall Street Journal.
Micro-lending is a lending option that deals with smaller loans to be granted to entrepreneurs who, because of low credit or risk potential, cannot attain their financing needs.
Earlier this week, Kiva announed a new partnership with Accion Texas-Louisiana - a similar micro-lending organization specializing in loans for small business development in the two Gulf Coast states they represent.
On top of the Visa donation, many are hoping the initiative will enable entrepreneurs to finally launch their own LLCs in Texas, Louisiana and the rest of the Gulf region.
Tags : llc formation, small business management, tx
Posted: Oct 22nd, 2010