Micro Loans - For the Very Poor

Did you know that over 4 Billion people in the world live on less than $4 dollars a day?  Did you know that over 3 Billion live on less than $2 dollars a day?

It is true!

We  have approximately 6.6 Billion people on the planet and nearly 2/3 live in poverty that is beyond belief.  

So, one great solution is that we need to help people create jobs for themselves by helping them start a micro business such as a delivery service, a street sales business, a sewing business, etc.  You get the idea.  A business that does not require a great deal of capital to start but has an upside.  A business that will immediately help improve the life of the owner.

Since I have been a banker for nearly 35 years, I have had several organizations and friends encourage me to start a micro lending business to make loans to those in need.  There are already numerous non-profits doing this.  In researching the prospects of starting my non-profit micro loan fund I have discovered that most of the current funds charge interest rates from 12% on the low side to 30%++ on the high side.  This stopped me cold in my tracks.

Here is the problem, I can not morally charge interest to people that are living on less than $4 a day.  I just can not do it.  Numbers of loan funds are, but if that is what it takes I am not going to do it.  NOT ME!  Every time I read about or listen to some guys tell me how they do their loan program my eyes glaze over.  I told my good friend Tim about it and how I feel about what is going on. Tim said that I am suppose to "reform banking".  Once I get that done, I will know how to loan these people the money they desperately need. "Reform Banking!"  Every time Tim would say that to me, I would think, Tim, are you crazy?  (I never told Tim what I was thinking but if he reads this blog I guess he will know!  Sorry Tim).

Anyhow, today I was reading in Exodus: 22:25.  The Lord says that if we are going to loan to the poor we should not do it the way the bankers are doing it.  The Lord says we can not charge interest on loans made to the poor.  That is correct, we can loan to poor, we just can not charge them interest.  NOW that is "REFORMING BANKING"! 

I excited about that idea, I am in, do you have any interest in helping me if we don't charge interest or fees?  If so, reply to this email.


Ross