San Francisco Microfinance Company kiva.org Funds Cockfighting Business in Peru

Kiva Microfunds
3180 18th Street, Suite 201
San Francisco, CA 94110

Kiva discussion forum: http://www.kivafriends.org/

Kiva customer service e-mail: kivacontactus [at] gmail.com

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kiva.org is a microfinance company that, according to their site: "lets you connect with and loan money to unique entrepreneurs in the developing world. By choosing a loan on Kiva, you can "sponsor a business" and help the world's working poor make great strides towards economic independence."

While browsing the Kiva site I came across this loan request:

http://www.kiva.org/app.php?page=businesses&action=about&id=36187

Which states, in part, "Sara Elva Vasquez Rodriquez runs a cockfighting business in the rural jungle town of Jepelacio, San Martin. Cockfighting is a passion for people all over Peru, including major urban areas ... They hold fights every Saturday night in a coliseum they built into the back of their home. They charge an entrance fee, handle the bets, and sell food and drink while the packed house bets and cheers on their favorite competitors ... Sara is requesting a loan of $700 (s/2000) to repay over 4 months. With the loan she would like to buy a freezer to keep various goods she serves her customers."

I wrote to inquire about their ethical standards and loan policies and received the following response:

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from: Kiva Staff
subject: Re: Lending - question regarding lending standards

Thank you very much for your email. As judging the ethics of any given loan is subjective, we have the following policy in place:

"Microfinance institutions will use their best efforts not to extend credit or loans to borrowers who are in any way engaged in prostitution, the sale or trafficking of adult or child pornography, lethal weapons, narcotics or illicit drugs, or who are otherwise engaged in criminal activities, including activities that could be related to terrorism. Failure to do so will result in termination of the Kiva Contract (hosting agreement)."

I notified my coworker who manages Kiva's partnership with this loan of your feelings about this posting. However, as all ethical judgments are subjective to one's cultural and religious background, we do rely on our lenders to only fund loans that they are comfortable funding. If we make an exception in this circumstance, I will certainly let you know.

Best wishes,
Rachelle Underwood
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