1. 1
Bringing Kiva Zip loans to
low-income and financially
excluded small businesses
in Brooklyn
Briefing to Brooklyn Chamber of Commerce
April 2013
1Monday, April 8, 2013

2. 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
2Monday, April 8, 2013

3. 3
#1
0% interest loan
product funded
entirely via online
crowdfunding
3Monday, April 8, 2013

4. 4
#2
Small starter loans up to
$5,000 designed for low
income and/or financially
excluded entrepreneurs
4Monday, April 8, 2013

5. 5
Or ... #3
“Getting ordinary folks to fund
loans to those small
businesses traditional lending
cannot reach.”
5Monday, April 8, 2013

6. 6
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
6Monday, April 8, 2013

7. Kiva Zip: reinventing small biz borrowing
7Monday, April 8, 2013

8. Kiva Zip: reinventing small biz borrowing
8Monday, April 8, 2013

9. Kiva Zip: reinventing small biz borrowing
9Monday, April 8, 2013

10. Kiva Zip: reinventing small biz borrowing
10Monday, April 8, 2013

11. 11
11Monday, April 8, 2013

12. 12
Trust =
Character +
Competence
12Monday, April 8, 2013

13. 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.
13Monday, April 8, 2013

14. 14
How Kiva Zip works in practice:
Victor’s Cafeto Coffeeshop
Kiva Zip Story
14Monday, April 8, 2013

15. Victor, Cafeto and a 0%, $5,000 loan
15Monday, April 8, 2013

16. Victor’s ‘trustee’, MEDA
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17. MEDA ‘endorsed’ Victor
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18. Victor’s
‘crowd’ of
lenders
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19. Lenders
expressing
support,
and even
becoming
customers
19Monday, April 8, 2013

20. Victor
updating
his
lenders
20Monday, April 8, 2013

21. Victor is now 100% repaid…
21Monday, April 8, 2013

22. …And he’s applying for a second, larger loan
for his 2nd coffee shop 1 year later!
22Monday, April 8, 2013

23. …And he’s applying for a second, larger loan
for 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
23Monday, April 8, 2013

24. Victor then endorsed his friend Rocio for a loan
24Monday, April 8, 2013

25. 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.
25Monday, April 8, 2013

26. 26
Examples of Organizations
partnering Kiva Zip as trustees
SEEDSPOT
Incubator, AZ
GREENHORNS
nonprofit, small farm-innovation
SYRACUSE UNIVERSITY
Institute for Veterans & Military Families
TEAM ETSY LITTLE ROCK
Community Center for African American Business
St Louis, MO
Oakland City Church
(Pastor Josh McPaul)
26Monday, April 8, 2013

27. 27
Trustees we’re partnering now in Brooklyn
CAMBA,
Community Grassroots
& CDFI Flatbush
BOC Net
nonprofit & CDFI - social and economic justice
RHONDA Schaller (individual)
Artist, Writer, Educator at Pratt
Design Institute
TEAM ETSY New York
Community 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-Up
recently funded via Kiva Zip
in March 2013, wants to pay
it forward.
27Monday, April 8, 2013

28. 28
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
28Monday, April 8, 2013

29. Other resources:
Press, About Kiva, Kiva Zip borrower video
29
29Monday, April 8, 2013

30. 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
30
30Monday, April 8, 2013

31. 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
31
31Monday, April 8, 2013

32. http://www.kiva.org/live
Watch all loans as they happen live online!
32Monday, April 8, 2013