1. 0% interest loan
product funded
entirely via online
crowdfunding
1

2. Designed specifically for
financially excluded, socially
impactful entrepreneurs who
need small starter loans up to
$5,000
2

3. Building off the success (and scale) of
Kiva.org around the world...
967,972 entrepreneurs
funded since 2005
67 countries
US$150 mil p.a. in
crowd-funded loans
US$1mil every 2.5 days!
3

4. ....built specifically around the unique
needs of US micro-entrepreneurs
4

5. Kiva Zip: reinventing small biz borrowing
• Expand access to 0% interest loans
• ...To small businesses not otherwise qualified for
conventional loans
• ...All loans are crowdfunded online from our lending
community
• We also lower cost of lending further by using digital
platforms (PayPal in the US)
• Which also directly connects borrowers with a ready
community of lenders who they can turn into fans
and advocates

6. How ZIP works: example of Victor, SF
Victor engages his
lenders with the
“conversations”
feature
Created 5
new part-time
jobs Repaid 10
months on time
Now applying
for a second ZIP Lenders can also
loan of check out his Yelp
profile
$10,000

7. How ZIP works: other borrowers
“Having 45 people invest in Pac Brew Labs is like hiring 45
brand ambassadors”,
Bryan, Pacific Brew Laboratory
“Kiva Zip is an invaluable resource for entrepreneurs”
Emiliana, Jarred Brine
“I didn’t think character based lending existed anymore. It’s an
amazing use of technology to bring us back to the basics.”
Cristian, J Style at Home Inc

8. 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:-
 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.

9. What’s in it for trustees?
If you already work with financially excluded clients
Empower (unproven startups, or low credit score entrepreneurs)...
Clients Kiva Zip will give the clients you endorse access to 0% business
loans they would otherwise not qualify for
If you already do great work in your community that largely
Promote goes unrecognized or unpromoted...
what you being a Kiva Zip trustee automatically allows you to promote
do your work (in your own words) to >1 mil socially-conscious Kiva
lenders everywhere. Also participate in Kiva PR initiatives.
If your organization’s potential funders care about tangible
Increase impact (businesses helped, $$ generated, jobs created)...
Impact, Kiva Zip helps you help more small businesses take off, faster.
Help Endorsing a deserving borrower online takes 15min. Reducing
Fundraise time and cost for raising capital means you can impact more.

10. Borrowers: who should you endorse?
In general, Trustees should endorse only those entrepreneurs who
They trust to repay (character-based assessment)
Possess the financial ability to repay (a new loan doesn’t increase indebtedness)
Character Assessment Minimum Criteria
Kiva Zip leaves it up to trustees to Must be met unless there are exceptional
make a judgment call in these areas circumstances
• The borrower's debt-to-income ratio must be
• Do you deeply trust that they are the kind less than 35%
of person who will commit to repaying their
loan? • The borrower cannot have over $3,000 in past-
due debt
• Do they have a viable business or
business plan? • The loan must be less than 75% of the
borrower's income
• Do you know what they will use the loan • The borrower cannot currently be in foreclosure
for and how it will impact their business? or bankruptcy
• Will this loan have a positive social • The borrower's annual income must be less
impact? than $100,000
• The borrower must be over 16

11. Endorsing a borrower is easy
Once a trustee has identified a borrower they want to endorse, there are five
principal steps before the borrower can begin fundraising for an interest-
free, crowd-funded loan on the Kiva Zip website:
1 2 3 4 5
Trustee Trustee Borrower Trustee Kiva Zip
application endorsement application review team review
Trustee fills out a For each borrower The borrower’s turn! Once submitted, Kiva Zip team’s
‘trustee application’ they endorse, Borrower completes every trustee final review before
form, telling Kiva Zip trustee writes a a ‘loan application’ gets to review posting it to the
(and lenders) why simple online the loan website.
they want to be a endorsement application
trustee •Their background
•Loan begins
• Describes the •Their business idea •Can choose to online fund-raising
•One-time borrower’s •“Why loan to me?” approve
character to •3-6 weeks to
•Online lenders •2-3 hours •Or suggest fund-raise
changes, depending on size
•20-30 mins •10 mins •Online form improvements to of loan
borrower

12. “Wow, Cool! How do we get started?”
1. Recommend all new trustees start with only 1-3 “pilot” borrowers
2. For each, 1st loan up to $5000
3. Only expand to more borrowers after 10 months’ total repayment
history (e.g. 2 borrowers with 5 monthly repayments each)
4. 2nd loan up to $10,000
5. 3rd loan up to $20,000
That’s it. Let me know if you have any questions?
Sulin Lau, Kiva Zip NYC
sulin.lau@fellows.kiva.org, mobile: 4156906510
website : zip.kiva.org

13. Appendix: other useful information about Kiva Zip
13

14. What do the loans look like?
 0% interest
 Business loans
 Small size – first loan can be up to
$5k; subsequent loans up to $50k
 Up to 24 months term
 Grace periods available for some
loans
 Repayments made in regular
weekly or monthly installments
 Disbursals and repayments
made electronically via Paypal
 Posted and ‘crowd-funded’ online

15. Example organizational trustee profile
Photo (or logo)
of the Link to
organization website,
Facebook page,
Twitter feed,
etc.
Information
on number of
borrowers
endorsed, and
repayment
data
List of
borrowers
endorsed
Information about the
trustee, how they will do due
diligence on borrowers, etc.

16. Example trustee endorsement
The trustee
endorsement shows up
as a tab on the
borrower’s loan page
We ask trustees four
simple questions
about why they are
endorsing the
borrower for a loan

17. Success stories
Borrower success stories in the press:
Seth Gold Carol Cooke DB Shroeder Tulio Cardozo
Bamboo Apparel Hot Dogma Depot Puzzle Piece Theatre Collaborative Benefit
Trustee partnerships in the press:
WEDC in New York Michigan Corps in Detroit American Dreams