By choosing a business on our website and then lending money online to that enterprise, you can "sponsor a business" and help the world's working poor make great strides towards economic independence. Throughout the course of the loan usually 6-12 months), you can receive monthly email updates that let you know about the progress being made by the small business you've sponsored. These updates include reports on loan repayment progress, photos of new capital equipment, narratives on business growth and standard of living improvements, and more. As loans are repaid, you will get your original loan money back.It is currently being offered just in Uganda and because of the publicity they have been receiving, they are currently out of businesses to sponsor. Apparently if the company defaults on the loan, your loan becomes a donation, but none of the companies have defaulted yet.
You can see the businesses that are being sponsored here.
What do you guys think of this strategy for helping people in developing nations? What are the advantages of this over traditional aid that are pure donations?
(Source: Private Sector Development Blog)