If anyone wants to try this, I encourage them to. Stupid as it sounds I watched an episode of Oprah six or seven years ago where she interviewed some guy who had a little extra money, so he started a non-profit bank that makes loans to the poorest of the poor in a northern state somewhere in India. He used his own money to make small loans of approximately U$S50 to no more than U$S100, primarily to women, so they could purchase the basics to create their own start-up businesses. Sounded like a good idea to me, so I contacted Harpo Productions for more information. They put me in contact with others who have started similar programs.
I'm not the richest person in the world, but I can afford to lose $5,000 without feeling too bad. I'm also fortunate to have a husband who has a doctorate in Social Work and years of experience running Fundacion Por in Argentina. In 2005 we started our first loan outreach program in the poorest province in Argentina and it surprised us both at how easy and successful it was. The loans are paid back by folks filling out a savings account deposit form each month that includes their name and the number of the payment. The bank does the rest for free. We, however, personally make the loans using our own money and have the applicants sign legally binding loan agreements. With less than the equivalent of U$S100 housewives started home businesses from as varied as tailors to others who cooked up batches of remarkably good lemonciello (quite a kick and legal to brew in that country). We only had two people default on their small loans the first year and both of them defaulted because of bad luck (poor health and death). They were, we thought, excusable write-offs. We do not take any profit from the loans. All interest is plowed right back into the start-up programs.
This is our second year monitoring a similar program we started in the small pueblos around Oaxaca, Mexico. It's no less than fucking stunning to see the progress and success of someone who has nothing and no opportunity to produce anything suddenly able to make enough money to feed him/her self and his or her family by weaving because they can purchase a simple loom. Some of women in Oaxaca have used as little as U$S25 to start their own tllayuda stands (sort of like a taco, but even more humble) and selling fresh boiled ears of corn (elote) on street corners. The men who apply for small loans tend to paint traditional Miztec and Zapotec designs on scrolls of aged paper, or create painted wood carvings and surprisingly they actually turn coin selling their art to all the 'Mericuhn retirees who now flock to the City of Oaxaca for the winter. Several families have formed little co-opts where they all specialize in fired pottery, hand-made lace, and one woman has started a very successful cooking school for gringo tourists. One guy (who we're keeping a close eye on) started a pulqueria in front of his adobe abode. I wouldn't drink the stuff, but plenty of his neighbors and people passing by do.
We're definitely not the most wonderful people in the world, but it has been a lot more satisfying than just writing checks to the local food bank, senior center, animal shelter, and AIDS organizations -- all of which are on my "where to spread discretionary money around" list every year.
I thought about trying a similar small business loan program in my home state of Nevada, but I hate to say that except for the members of the local Shohone and Goshsute tribes, most of the folks feigning interest were just looking to get something for nothing. I'm all for charity, however, I'm more inclined to offer the kind of charity that was offered me when I was 16, kicked out of the house by my "christian" family, and had to live on the streets. Thanks to many people who broke the rules so that I could work (illegally, underage tending bar or non-union in the service industry) I was able to get a leg up in the world.
Of course, there are folks on LPSG who can't stand the idea that any of us posting about what we do to help others on this thread, but fuck them. I'm confident the naysayers lurking on this site are most likely the most pitiable.
And I agree a thousand percent, giving someone a sincere hug and being there to support them is one of the best things anyone can do.
