The on-going probe of short-seller middlemen has focused attention on the art of stock lending, which is now becoming a retail proactive as well. The fact is that the explosion in hedge funds and mutual funds that can short has led to surge in demand for loanable shares. The so-called middlemen found a growth market of sorts. To meet demand, more brokerages are hitting their retail accounts for shares. Charles Schwab offers a service that pays interest to accounts for the loans of 76 hard-to-borrow stocks. The other big online players are considering following suit. The practice can generate some short-term income for people without a lot of risk.  

For more:
- here's the MarketWatch article