In a move that could end up having a massive impact on US entrepreneurism, Kiva.org has introduced their peer-to-peer lending service to the US.  Kiva was originally built to alleviate poverty by creating a new capital market for global social entrepreneurs — to the US.

In their report on today’s announcement, TechCrunch reports,

Kiva will launch today with the ability to for anyone to make loans to 45 small businesses and entrepreneurs seeking funding from the areas of New York, San Francisco, Boston, Atlanta and Miami. The businesses range in purpose and services, from salons to landscaping to day care facilities. For example, a Queens, NY-based entrepreneur delivers baked goods to bodegas in New York. He is looking to raise $6000 to fund insulation technology for his trucks.

[Kiva CEO Premel] Shah tells us that the idea was first introduced by California’s first lady and journalist, Maria Shriver, when she visited Kiva’s office last year. She asked if Kiva’s model could be replicated domestically to support low-income entrepreneurs in the United States. Shah said that initially he wasn’t sure if lending within the U.S. fit into Kiva’s model of international development. But following the recession, the organization realized the opportunity and need to provide community driven, low-cost capital for the everyday small business owner in the U.S.

At Business Catapult, we think this demonstrates the viability of a market for funding entrepreneurs on many levels, expanding the scope beyond the traditional VC and formal angel network market that has thus far dominated the investment marketplace for growth businesses.  Today, only the SBA offers any type of funding for businesses that don’t promise the stratospheric growth that technology companies have been delivering to some early-stage investors over the past 15 years.

Many people in our community in Colorado are building a deeper understanding of the need and desire to invest in locally owned businesses that support a strong regional economy, keeping profits and jobs from leaking out to corporate headquarters.

Kudos to Kiva!