Kiva Zip: Crowdfunding Small Business in Brooklyn NY

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Bringing Kiva Zip loans to low-income and financially excluded small businesses

in Brooklyn

Briefing to Brooklyn Chamber of Commerce

April 20131Monday, April 8, 2013

972,016 entrepreneurs funded since 2005

1.3mil registered lenders

In 2012 alone, US$150 mil crowd-funded loans

US$1mil every 2.5 days!

First, a little bit about Kiva.org

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#10% interest loan product funded

entirely via online crowdfunding


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#2Small starter loans up to $5,000 designed for low

income and/or financially excluded entrepreneurs


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Or ... #3“Getting ordinary folks to fund

loans to those small businesses traditional lending

cannot reach.”


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Completely new model of microlending specifically addressing needs of US micro-entrepreneurs

Kiva Zip loans offer small biz 0% interest substitute to funding your working capital using credit cards


Kiva Zip: reinventing small biz borrowing


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Trust =

Character + Competence


Kiva Zip “Trustees” and why they matter

In the Kiva Zip model of character-based lending, “Trustees” - organizations or individuals that work closely with small entrepreneurs - are absolutely crucial.

Trustees are those entrusted to recommend the most trustworthy small businesses for crowds to lend to:-

Identify eligible and deserving borrowers for 0% interest loan

Publicly endorse them on the Kiva Zip website

Support the borrower in their business (advice, mentorship, incubator space, networking)

Trustees have no financial risk if a borrower they endorse does not repay, but their reputation is tied to borrowers’ performance.


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How Kiva Zip works in practice:

Victor’s Cafeto CoffeeshopKiva Zip Story


Victor, Cafeto and a 0%, $5,000 loan


Victor’s ‘trustee’, MEDA


MEDA ‘endorsed’ Victor


Victor’s ‘crowd’ of lenders


Lenders expressing support, and even becoming customers


Victor updating his lenders


Victor is now 100% repaid…


…And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!


…And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!

The best metric of all:Victor’s 2 new coffeeshops

created 7 new jobs that didn’t exist 13 months ago exist


Victor then endorsed his friend Rocio for a loan


What’s in it for trustees?

Empower Clients

If you already work with financially excluded clients (unproven startups, or low credit score entrepreneurs)...

Kiva Zip will give the clients you endorse access to 0% business loans they would otherwise not qualify for

Promote what you

do

If you already do great work in your community that largely goes unrecognized or unpromoted...

being a Kiva Zip trustee automatically allows you to promote your work (in your own words) to >1 mil socially-conscious Kiva lenders everywhere. Also participate in Kiva PR initiatives.

Increase Impact,

Help Fundraise

If your organization’s potential funders care about tangible impact (businesses helped, $$ generated, jobs created)...

Kiva Zip helps you help more small businesses take off, faster. Endorsing a deserving borrower online takes 15min. Reducing time and cost for raising capital means you can impact more.


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Examples of Organizations partnering Kiva Zip as trustees

SEEDSPOTIncubator, AZ

GREENHORNSnonprofit, small farm-innovation

SYRACUSE UNIVERSITY Institute for Veterans & Military Families

TEAM ETSY LITTLE ROCKCommunity Center for African American Business

St Louis, MO

Oakland City Church (Pastor Josh McPaul)


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Trustees we’re partnering now in Brooklyn

CAMBA,Community Grassroots

& CDFI Flatbush

BOC Netnonprofit & CDFI - social and economic justice

RHONDA Schaller (individual)Artist, Writer, Educator at Pratt

Design Institute

TEAM ETSY New YorkCommunity of Etsy Sellers

Kiva needs BCOC’s help to connect/refer more grassroot organizations working with

excluded communities in BK - churches, communuty

outreach centers, education, immigrant communities, female empowerment

Recent BK-based Start-Uprecently funded via Kiva Zip in March 2013, wants to pay

it forward.


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Brooklyn Chamber of Commerce+ Local grass root orgs as trustees/recommenders

+ Kiva’s 1mil socially conscious lenders

Together: we can get work together to

finance good businesses commercial lending cannot reach


Other resources: Press, About Kiva, Kiva Zip borrower video

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Kiva Zip: Some recent press stories

✴Bill Clinton Launches Kiva Zip in Little Rock, AK http://www.opednews.com/articles/President-Bill-Clinton-Att-by-Michael-McCray-130320-618.html

✴Bill Clinton calls Kiva Zip a “very big deal” for small business http://techcrunch.com/2013/03/22/kiva-piloting-microlending-for-u-s-small-biz-clinton-says-its-a-very-big-deal/

✴Kiva funds one million entrepreneurs http://www.marketwire.com/press-release/kiva-touches-one-million-lives-worldwide-with-crowdfunded-loans-1768754.htm

✴Huffington Post articles on Kiva Zip http://www.huffingtonpost.com/kiva-zip/

✴Creating Jobs for Native Americans with Kiva Zip http://www.huffingtonpost.com/kiva-zip/

✴Kiva Zip and Character based lending http://www.fastcoexist.com/1679137/kiva-s-secret-project-to-let-you-give-peer-to-peer-loans

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And finally....If I haven’t run out of time -

Video: “Crowdfunding Small Business in Brooklyn, NY - 1 small loan at a time http://youtu.be/LZRp7CmPpi0

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http://www.kiva.org/live

Watch all loans as they happen live online!


Kiva Zip: Crowdfunding Small Business in Brooklyn NY

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