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0% Interest Financing

& Beginner Farmers

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Crowdfunds $1mil in loans every 2.5 days

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xx% Kiva loans are farm + agriculture

stat

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0% interest loan product funded

entirely via online crowdfunding 

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....Designed specifically for small and/or new

businesses that have difficulty securing traditional

financing 

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How Kiva Zip works, and who it works for?

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1.“Beginning”

2.“Small”

3.“Strong social ties”

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“Beginning”“Beginning”

• new, unproven businesses• little or no track record• Zip designed as the "first rung of the

credit ladder" • suits those with short credit histories -

does not assess worthiness using FICO scores but competence and character instead

• Case Study: XXXX

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“Too Small”“Too Small”

• Some loans too small to be serviced profitably • Sulin to dig stats of what is too small a loan for

most lenders• Small lenders is Kiva's specialty

Graph: average US price for a dairy cow $2200average US Microloan range

Ave Kiva (international) loan = $431Kiva Zip USA loan range = $1000-$10000

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Built specifically around the unique needs of US micro-entrepreneurs

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“Strong Social Ties”“Strong Social Ties”

• Kiva Zip qualifies borrowers not by Credit Score

• ...but by the willingness of established community-based organizations to vouch (“endorse”) borrowers

• Community Ties and Human Trust are what count in the Kiva Zip model

• Farming by its very nature is invested in the land, and rooted in the community

• Case Study: XXXX

• 5 quick examples of different support organizations around the country who have endorsed beginning farmers because they believe in their farms, and in the farmer

6 reasons why Kiva Zip can help you lower barriers for Beginning Borrowers

Expand access to 0% interest loans ...To small and new farmers 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), no overheads = no fees or interest, only pay back the principal Which also directly connects farmers with an online “Social Network” of emotionally invested lenders These they can then turn into fans, customers and brand advocates!

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So yes, it’s a great vehicle. But the real fuel

is you.

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So yes, it’s a great vehicle. But the real fuel

is you.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.

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)

Borrowers: which farmers should you endorse?

Character AssessmentCharacter AssessmentKiva Zip leaves it up to trustees to Kiva Zip leaves it up to trustees to

make a judgment call in these areasmake a judgment call in these areas

Financial CriteriaFinancial CriteriaMust be met unless there are Must be met unless there are

exceptional circumstancesexceptional circumstances

• Do you deeply trust that they are the kind of person who will commit to repaying their loan?

• Do they have a viable business or business plan?

• Do you know what they will use the loan for and how it will impact their business?

• Will this loan have a positive social impact?

• The borrower's debt-to-income ratio must be less than 35%

• The borrower cannot have over $3,000 in past-due debt

• The loan must be less than 75% of the borrower's income

• The borrower cannot currently be in foreclosure or bankruptcy

• The borrower's annual income must be less than $100,000

• The borrower must be over 16

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Kiva Zip needs more trustees willing to endorse the farmers they believe in

• 3 Things you can do right now to start becoming a trustee

1. Think of 1 deserving borrower you know right now who could use a loan <$5000 - your pilot borrower

2. Think about why you TRUST in this farmer’s competence, and their character, and whether he/she is someone you’d vouch for - Y/N?

3. If Yes, send an email to Kiva’s New York rep: Sulin.Lau@fellows.kiva.org

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End with a Story

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By working together, we hope to have 100 of these stories this time next year.

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.