Microfinancing is loaning small amounts of money, but during the past few years these small loans have become big business. Until recently, Matt Flannery had never heard of the term microfinance, but it was something that would soon change the lives of people all over the world. He and his wife, Jessica, started Kiva to put poor people in touch with private lenders.

Microfinancing was started by Muhammad Yunus. Yunus is a professor of economics in the poor country of Bangladesh. The concepts he teaches in class aren’t at all what he sees in the real world around him. Banks don’t make loans to people who need $50 for supplies to start a street side business, so people have turned to loan sharks only to find themselves further in poverty.

Grameen Bank was founded by Muhammad Yunus to help fund interest-free microloans. He and the bank were jointly awarded the Nobel Peace Prize in 2006. In 2004, Jessica Flannery invited Matt to attend an event at Stanford University with her. The speaker would be Professor Yunus. The event would prove to be life-changing.

In 2004, Matt was working as a software developer for TiVo. Microfinance was a word he’d never heard, but he decided to attend the Stanford event for Jessica’s sake. After hearing Yunus speak, both Matt and Jessica knew they had something to contribute to the world. They didn’t have a clear idea yet what that would be, but they brainstormed for a year before Kiva was finally launched.

During the first year of their marriage, Jessica spent several months in Africa. Matt decided to join her, and he was amazed at what he saw. It’s common for Americans to get million dollar loans to start a business, but in the poorest parts of Africa, people need more like $100. With this money, they can become seamstresses, open bicycle repair shops, or provide food with a small retail store.

People are the same throughout the world. We talk about the “American Dream” to provide for your family and have a comfortable life, but it’s really a universal dream. Being an aspiring entrepreneur himself, Matt saw this drive in the people of Africa. It moved him to want to help them somehow.

One night back in America, Matt and Jessica were tired of brainstorming, so they jumped at the opportunity to build a website. They had heard so much negativity from people, but they knew Kiva would be something in which they could take pride.

Today, www.Kiva.org is more successful than anyone dreamed it would be. In two years, loans totaling more than $25 million have been given to over 250,000. The money comes from individuals who can loan as little as $25. They choose who gets the loan based on detailed profiles and updated reports. When the money is repaid, lenders are free to keep their money or re-loan it to someone else. Little people can now have a hand in changing the world.