Invest in your community

Microlending is an idea that still is gaining traction, especially here at home.

That's why I'm so excited to see the new investment program launched by Iowa Valley Habitat for Humanity and the Housing Trust Fund of Johnson County - one of the area's first.

Maybe you already know that Habitat groups build and rehabilitate decent, affordable homes using volunteer labor. Homeowner families contribute hundreds of hours of labor, pay a down payment and take on a mortgage for the costs.

Habitat uses those mortgage payments and donations to build more houses - helping even more lower-income families put a roof overhead.

But donations to many non-profits have been thin in recent years, as families have struggled to keep their own roofs over their own heads.

By tapping into microlending, Iowa Valley Habitat opens up new options for would-be donors who find themselves long on generosity and short on cash.

The group wants to raise $40,000 for the project, which could be a model for Habitat chapters across the state and country - and for other non-profits here in Eastern Iowa.

For as little as a $500 buy-in, you can help support this year's Dottie Ray Women Build project.

Unlike a donation, you'll get your money back - with interest. At 2.5 percent interest, you won't get rich.

But it's another way to give and receive, to make an ethical investment in your community.

The idea behind microlending is to attack poverty by loaning small sums of money to borrowers too poor to qualify for typical loans. Those borrowers use the funds to start a small business or make other investments.

Microcredit has been used for decades around the world, making it possible for untold numbers of people to lift themselves out of poverty.

Microloans were used by more than 128 million of the world's poorest families in 2009, according to the Microcredit Summit Campaign, an international group dedicated to expanding the practice.

It's an elegant solution to complex issues of poverty - low investment, consistent return (microcredit groups routinely cite repayment figures that approach 100 percent), immediate benefits.

U.S. non-profits have been slow to dip their toes in the microcredit stream, although a number of groups will help U.S. investors fund projects overseas, making modest profit, or reinvesting to do even more good.

There's no reason for it to work any differently here at home - if only more local non-profits would take the plunge.