Uncrunch America

As one of more than 7,000 submissions to Change.org’s "Ideas for Change in America Contest," Uncrunch America provides an interesting solution to mitigate the credit crisis. The project proposes to bring peer-to-peer lending (first popularized by Kiva.org) to Americans. Kiva.org, which allows anyone with internet access to provide a small loan (typically $25-$50) to a micro-entrepreneur in the developing world, has been wildly successful in its three years of existence. So far, more than $55 million has been lent through the site.

Uncrunch America would allow Americans to benefit from the same lending methodology, while freeing idle money for productive use. Borrowers would be able to avail affordable loans to finance their small businesses, school loans, or health care expenses, while lenders would add social lending to their investment portfolios and earn a slight profit. Fast Company aptly summarizes the potential gains that could arise from this idea simply through the multiplier effect of money.

The project already has $1 million in backing from Lending Club, and if the project gains enough votes, it will be presented to the Obama Administration on January 16^th. Thoughts?