Microloans?

[iamrefreshed]

Anyone familiar with this concept? In particular this website…

microplace.com/

I’ve heard microloans are a great way to help the poor help themselves through building small businesses. Besides just regular charity, I wonder if this is a good way to help.

I wonder if this would be unethical since you could conceivable make money on your investment/donation.

Does anyone think the church would consider this unethical?

 

[BrianK2007]

The bible takes a dim view on usury, on the other hand I’m not sure if making an investment would really be unethical. And you don’t have to make a profit if you don’t want to.

You could also argue that you could potentially benefit from any charitable contribution. Let’s say I give $100 to a program to help the homeless. They use the money to help get someone off the streets. If I run a business this person could potentially be a new costumer that ends up doing thousands of dollars of business with me. Does this mean I should never make a charitable contribution? No, and if you do make a little profit off one of these loans it means you’ve helped establish someone.

 

[KarenNC]

Does anyone think the church would consider this unethical?

Well, I found this:
ccomaha.org/get_involved/programs/community_services.html
Catholic Charities in Omaha, Nebraska

Microbusiness Training and Development:
This program is designed to assist persons who want to start their own small business. The Microbusiness Training and Development Project offers training in business skills, micro-loans and ongoing technical assistance.

charity.org/site/c.gtJUJfMQIqE/b.2448901/k.4B20/When_Microloans_are_More_than_Money.htm
In 1997, in the aftermath of the war in Bosnia-Herzegovina, a microfinance program supported by Catholic Relief Services (CRS) began operations, targeting low-income female microentrepreneurs through group loans. Called MIKRA, the program serves women from every ethnic and religious group in Bosnia who run very small businesses.

Based on the above, I would say there is definitely precedent within official Catholic organizations for a Catholic to be invovled in funding microloans.

 

[iamrefreshed]

Thanks for the links Karen.

What I liked about the idea was the fact that 84% of the loans are to women with children.

I’m big believer in the power of mothers to change our world (and women in general). Men have tried forever and failed miserably. And that’s coming from a man!

As far as usary…these loans pay between 1-3% annually. You could certainly do much better in a CD!