Post on 12-Aug-2015
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Kiva Zip in NYC
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Kiva and Kiva Zip Background
The Kiva Zip Loan
Impact to Date
Cool Findings and Exciting Updates
Contents
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5My Kiva Lending Portfolio
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1,200,000+ Lenders
1,500,000+ Entrepreneurs
$650,000,000+Loans
98% Repayment Rate
A Brief History of Kiva
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Small businesses create
jobs in the United States
2 out of 3
small businesses hired just one additional employee
1 in 3We could be at full employment ifEvery day
small business loan applications are rejected by banks
8,000
Access to capital is consistently a
constraint to growth reported by U.S. small businesses
Top 3
What’s the problem? Job creators are constrained
8The big picture vision
A hundred years ago, banking was all about human relationships.
Now it is all about FICO scores, credit reports and balance sheets.
Kiva Zip retains the power of modern technology and data…
…But reinserts relationships into today’s transactional financial systems.
9What’s our solution?
Technology platform
Generous, patient capital
Social underwriting
1 2 3
10Our Bet
1 Increase access to capital for small business owners who might not otherwise qualify for microloans
2 Use technology to lower the cost of loan capital for borrowers
3 Connect Kiva’s million lenders more closely with the borrowers they are supporting
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Kiva and Kiva Zip Background
The Kiva Zip Loan
Impact to Date
Cool Findings and Exciting Updates
Contents
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For business purposes only
Small size:– First loans up to $5k, $10k with
Trustee– Agriculture loans up to $10k
0% interest, and no fees
Up to 36 months term
What Kiva Zip loans look like
Grace periods available for startups and agriculture businesses
Monthly repayment installments
Payments administered electronically via PayPal
Posted and ‘crowdfunded’ from our online community of lenders
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Pay for legal fees
Purchase vehicles
Hire staff and help
Improve their technology
Upgrade their websites
Market and advertise
Purchase inventory
Invest in equipment
Expand product lines
Our borrowers are using Kiva Zip to…
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We require that all borrowers on Kiva Zip: Be over the age of 18 Have a PayPal account or have the ability to set one up Are not currently in bankruptcy or foreclosure.
If you meet these criteria you qualify for a Kiva Zip loan. We believe in evaluating an entrepreneur’s network to evaluate “credit worthiness”. We make decisions less based on conventional financial metrics, and more based on a borrower’s demonstrated social network.
There are two primary components to getting a Kiva Zip loan:
1) Having a TrusteeTrustee endorsements help you qualify for the Kiva Zip program. A Trustee is meant to add credibility to you as you fundraise on our website, by vouching for your character and your business.
2) Inviting lendersWe require most borrowers to invite lenders to the Kiva Zip platform before you’re able to take advantage of our crowd of lenders. We view this is an important measure of your trust network and hope that these lenders keep you accountable for repaying the loan.
Qualifications of the Kiva Zip program
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Starting a Loan Application• Trustee Endorsement or No Trustee ApplicationDrafting a Profile• Private finances page and public fundraising profileApplication Review• Trustee review, Kiva NYC Review, HQ ReviewPrivate Fundraising Period• Required number of lenders to convert to being viewed publiclyPublic Fundraising Period• The wisdom of the crowdFully Funded!Repayment Cycle
The Kiva Zip NYC Team will be sending you tips and tricks throughout the process to ensure your best chance of success!!
The Kiva Zip Process
16How to Start
Borrowers can start the Kiva Zip process by visiting
https://zip.kiva.org/borrow
Trustees sign up and endorse borrowers by visiting
http://www.ustrustees.kivazip.org/
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Kiva and Kiva Zip Background
The Kiva Zip Loan
Impact to Date
Cool Findings and Exciting Updates
Contents
18Kiva Zip impact to-date
1300+ small businesses supported with 0% interest loans
$6.3m of microloan capital deployed
Over 50,000 lenders have made a loan
89% repayment rate (has been rising from 84% since June 2013)
55% of borrowers are ethnic minorities
Over half of loans have been to women
59 loans to veterans
19Kiva Zip NYC impact to-date
92 small businesses financed at 0% interest
$470,000 leveraged for NYC borrowers
50+ Trustees have endorsed a borrower
91.5% repayment rate
71% of borrowers are
ethnic minorities
+50% of loans have been to women
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Kiva and Kiva Zip background
The Kiva Zip Loan
Impact to Date
Cool Findings and Exciting Updates
Contents
21$10,000 First Time Loans
22Loan Matching – Thank you Deutsche Bank!
2395% Success Rate to Fund on Kiva Zip
24Social Underwriting Unlocking Access to Capital
Loans with LESS than 15 invited lenders 87%
Loans with MORE than 15 invited lenders
423 loans; 97% of portfolio
25 loans; 3% of portfolio
97%
25Social Underwriting Unlocking Access to Capital
26People-based finance is the means as well as the end !!
Increasing breadth
Increasing depth
Social underwriting is extremely powerful
It works1
It’s cheap2
It expands access3
It grows the movement!4
27Marketing and Engagement Tool
Supporters Connections Customers
Feleciai had over 500 lenders on her loan
Many of them sent her messages of support
She has increased her sales by being on Kiva Zip