A year ago I learned about Kiva.org, a startup that makes microfinance loans to entrepreneurs in poor countries. Sometimes a loan of just a few hundred dollars is enough to help poor entrepreneurs start a new company that becomes self-sustaining and lifts them out of poverty. Full repayment of the loan is expected.

Last December I decided to try it. I sent in $25, which was pooled with the money from nine other people to provide a $475 loan to Lina Martinez Hernandez of Mexico. Lina is investing the money in her own restaurant. To date, Kiva has had a 100% repayment rate, and I thought I’d couldn’t lose anything by sending $25.

Since then, I’ve received notice of two repayments; Lina has repaid 50% of her loan. I don’t doubt she’ll pay back the loan completely, and I haven’t missed the money in the meantime. Someday I’d like to eat lunch at her restaurant.

Jeff Lindsay recently wrote about gambling on people, an idea that came to him after watching the story of Chris Gardner in The Pursuit of Happyness.

“In his moments of crisis, and in the lives of many I have known, a small amount of cash freely given could have made the difference between disaster and hope.”

I like what Kiva is doing. I think it could be called long tail philanthropy. Just as the Internet has facilitated the creation of many niche markets, it also brings purpose to a $25 loan that would otherwise be insignificant.