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POPSMicrolending -- An Alternative to Payday Loans? There's an interesting article in today's New York Times about "microlending" in the US. Microlending is common in third world countries, and involves small, short term loans provided as a stimulus to the economy. Recipients are typically small businesses or merchants. The New York Times article discusses microlending in the US as a possible alternative to payday loans . Sounds interesting.... but most payday borrowers are not using the money for an income-generating activity.