11.17.2006 - 09:55am ET

(CSRwire) November 17, 2006 | Silver Spring, MD--In one short week, nearly 900 web-savvy entrepreneurs from the U.S. and Canada made a connection with 31 low-income Mexican families living in settlements along the U.S.-Mexico border. They did it by making, by making US$24,000 in loans--$25 at a time-- through an innovative partnership between Kiva.org and CHF International.

Explosive population growth in part of Mexico has created social and economic challenges for nearly one million Mexicans working in the manufacturing industry along the US border. The local government and private sector have not been able to respond to the need for housing and financial services at prices that workers and their families can afford. As a result, many new settlers struggle to maintain adequate housing and lack capital to support their businesses.

In response, CHF International, a leading provider of humanitarian assistance and development services, established the Fundación para la Vivienda Progresiva (FVP), a locally registered nonprofit that has helped more than 31,000 family members improve their lives through loans, counseling, and other financial services. To date, CHF International and FVP have already distributed over US$3 million in small loans to low-income borrowers (40% of who are women) in the targeted area. In the past, the loan capital had been furnished by private sector partners including the Ford Foundation, the ALCOA Foundation, the Inter-American Foundation, Johnson & Johnson, and the Cummins Engine Foundation. Now, through the partnership with Kiva.org--the first person-to-person microlending website--CHF International is giving anyone with an Internet connection the opportunity to make personal loans directly to low-income individuals.

"By giving thousands of concerned individuals the chance to make a real difference in the lives of vulnerable families around the world, Kiva.org is truly on the cutting edge of philanthropy," said John W. Chromy, CHF's Vice President of External Relations.

"For our clients, an US$800 loan allows them to invest in the assets and equipment they need to establish their businesses for the long term. These loans make such a difference that more than 97% of our clients worldwide are able to pay the loans back within 30 days of their due date. This is a tremendous accomplishment!" said Chromy.

Through Kiva.org, any individual can review the profiles of hundreds of potential clients who are seeking small loans to expand their businesses and improve their livelihoods. These individual donors can then make loans to any number of clients. As a Kiva field partner, CHF International's local partners are responsible for identifying appropriate clients, posting their profiles, facilitating the loans, and ensuring timely repayment. By January 2007, CHF's partners in Afghanistan and Jordan will also be posting profiles on Kiva.org to connect low-income men and women in these countries to potential lenders.

To join thousands of other individual lenders throughout the world, visit www.Kiva.org and become a lender. To become an institutional partner supporting FVP's growth in Mexico, please contact nabdullah@chfinternational.org. Our partners make it possible for CHF to develop and introduce new loan products and expand our capacity to assist a greater number of low-income families in the communities where we work.

About CHF International: With a combined development finance portfolio worth over US$60 million, CHF International is one of the leading providers of microcredit loans and services in Latin America and the Middle East. Today, with a 20-year track record of success, CHF's 12 Development Finance Institutes in 11 countries are serving more than 400,000 borrowers, and are averaging a repayment rate of 97%. CHF's mission is to serve as a catalyst for long-lasting positive change in low-income communities around the world, helping them to improve their social, economic, and environmental conditions.

About Kiva.org: Launched in October 2005, Kiva's goal is to reduce poverty in developing countries by giving entrepreneurs the ability to build their businesses through flexible loans. Kiva is a 501(c)3 non profit organization that receives free payment processing from PayPal so that 100% of loan funds can reach the micro-entrepreneur and 100% can be repaid to the Internet lender.

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