Job creation and unemployment continues to be a hot-button issue as the United States pushes forward into the 2012 Presidential election season. The unemployment rate sat at 9.1 percent in May, according to the U.S. Bureau of Labor Statistics.
That's not acceptable for President Barack Obama and opposition candidates like Mitt Romney.
"We stabilized the economy, we prevented a financial meltdown, and an economy that was shrinking is now growing. ... But, I'm still not satisfied," President Obama said in June. "I will not be satisfied until everyone who wants a good job that offers some security has a good job that offers security."
But, what about those small business owners that are struggling to remain in business? Micro-lending organization Kiva is shifting their focus to include domestic loans along with its flagship international lending service.
The new Kiva initiative -- named Kiva City -- is aimed to give loans to small businesses in designated cities that have been impacted by the economic downturn. To date, Americans have lent $200 million to business owners in over 59 countries around the world. Now, loans to small businesses in American cities are funded in about a week, according to Kiva.
"During challenging economic times, smaller businesses tend to be more fragile or vulnerable than larger firms. Smaller businesses go out of business more frequently often as a result of cash flow difficulties. Those that survive are slower to rehire or replace eliminated jobs. And small businesses have fewer options with respect to access to capital," wrote Premal Shah and William M. Sheedy, Kiva.org and Visa Inc. in an article for The Huffington Post.
The first hard-hit area to benefit from Kiva City is Detroit. Among initial Kiva City borrowers include Crystal, a vegan brunch shop owner; Emily Ann, an organic clothing designer; and Delphia, a homeless shelter director. This isn't charity -- Kiva City borrowers repay their loans within a set period of time, just like traditional bank loans. Ideally, the loan gives the business enough capital to grow, contribute to the state economy and possibly create additional jobs.
"From tornadoes to Mississippi River floods, we've seen countless examples this year of how the individual actions of ordinary Americans, working in shared purpose for their neighbors, can help their communities recover from natural disasters. We believe the same model of personal action can help our nation's small businesses," Shah and Sheedy wrote.
Will Kiva City be as successful as the original Kiva mission? Time will tell, but things are looking positive so far.
Meagan Morris is a freelance multimedia journalist who focuses her work around important cultural and women's issues around the globe. Follow her on Twitter @upsidemeagan.
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