News Article

While small business owners are finding it difficult to find the funds they need to keep their doors open, more of them are turning to nonprofit fundraising options that most commonly benefit developing nations.

As a result of a weak economy, nonprofit microlenders are working to help citizens and businesses at home, the New York Times reports. Traditionally, microfinance operates by granting very small loans to poor people, and is most common outside the United States.

However, microlenders are seeing an increasing demand for their services in the U.S. One organization, Kiva.org, has just launched a pilot program in the U.S. Grameen Bank, a microlender begun by Nobel Peace Prize winner Muhammad Yunus, also has plans to expand operations across the country, the Times writes.

Microlenders are also receiving support from the federal government. Last year's economic stimulus bill awarded $54 million to the Small Business Administration for assistance to microlenders.

Smaller microfinance groups are working to help their local communities as well. OUR MicroLending in South Florida awards average loans of $5,000, and since opening in 2008 has made 764 loans totalling $4.5 million, the Miami Herald reports.