Kiva Zip Trustee Overview
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Transcript of Kiva Zip Trustee Overview
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US Trustee Introduction
Spring, 2013
January, 2014U.S. Trustee Introduction
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Kiva is a non-profit, based in San Francisco, that enables individual lenders to crowd-fund person-to-person loans to individual borrowers around the world.
Kiva made its first loan in Uganda in 2005, and has since made over one million loans in 75 countries.
Welcome to Kiva
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1,000,000+ Lenders
1,000,000+ Entrepreneurs
$500,000,000+Loans
99% Repayment Rate
Kiva’s impact to-date
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In 2011, Kiva launched Kiva Zip which aims to expand financial access to financially excluded and socially impactful entrepreneurs in the United States. We have three principle objectives:
Improving Access to CapitalWe support
entrepreneurs who would not qualify for conventional
loans
We leverage new technologies to lower financial
costs for borrowers
We facilitate local and global
connections that have a positive social impact
Kiva Zip
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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 3Full employment achieved ifEvery day
small business loan applications are rejected by banks
8,000
Access to capital
constraint to growth reported by U.S. small businesses
Top 3
What’s the problem? Job creators are constrained
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Traditional Banks
• Traditional banks are rejecting borrowers because of their credit score, years in business, cash flows, or collateral.
Kiva Zip
• Kiva Zip doesn’t evaluate traditional financial metrics. We evaluate borrowers based on character, reputation, trust, and relationships.
Trustees• Trustees help us find
entrepreneurs that could benefit from the Kiva Zip program. By vouching for an entrepreneur’s character, business, and social impact you are backing their credibility.
A new paradigm – social underwriting
Kiva Zip aims to change the way lending is approached in the United States. We believe in a different lens by which entrepreneurs are deemed “credit worthy”. We believe that an entrepreneur’s character and network of support and relationships are just as viable as traditional financial metrics.
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Trustees are able to partner with Kiva Zip and recommend specific small business owners that they feel could benefit from Kiva Zip.
It is the responsibility of Trustees to:
1) Find eligible borrowers for a Kiva Zip loan
2) Publicly endorse them on the Kiva Zip website
3) And provide ongoing support throughout the loan term
In your assessment of an entrepreneur’s fit with Zip, we ask that you evaluate their: Character: Is the borrower a good person? Do you deeply trust that they are the
kind of person who will commit to repaying their loan? Business: 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? Social Impact: Will this loan have a positive impact on the life of this entrepreneur?
Is this business making a positive impact in your community?
Trustees have no financial or legal liability whatsoever for Kiva Zip loans.
Trustees
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Community Development Corporations
Economic Development Corporations
Small Business Development Centers
Student Groups and Professors
Other Local Small Businesses
Neighborhood Associations
Startup Incubators
Religious Groups
SCORE Advisors
Non Profits
We have over 250 trustees on Kiva Zip
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Help fund entrepreneurs you believe inAfter completing your application you'll be able to endorse entrepreneurs for interest-free loans.
Showcase your impact We'll provide you with a profile highlighting the small businesses that you've supported.
Spread awareness of your workWith over a million lenders, Kiva is one of the most heavily visited non-profit websites.
Increase the economic vitality of your communitySmall businesses are the backbone of all communities. Seize the chance to support yours.
What’s in it for you?
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0% interest
Business loans
Small size – first loans up to $5k; subsequent loans up to $25k
Up to 24 months term
Grace periods available for some loans
Regular weekly or monthly repayment installments
Payments administered electronically via Paypal
Posted & ‘crowdfunded’ online
What Kiva Zip loans look like
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Pay for legal fees
Hire staff and help
Purchase vehicles
Upgrade their websites
Improve their technology
Market and advertise
Purchase inventory
Invest in equipment
Expand product lines
Our borrowers are using Kiva Zip to…
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Kiva has a network of over 1 million lenders. When a borrower fundraises, they have exposure to thousands of potential customers, brand ambassadors, and business advisors.
Watching hundreds of lenders around the world read your story, look up your business, and invest is very encouraging and builds confidence. We believe this is essential to business success.
The power of crowdfunding
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“Jerry, let us know where we can buy some of your Tuna jerky!” - Daniel
“Farming is no easy task and what you two are doing with your team is
inspiring to all of us who are beneficiaries of your labor.” - Nick
“G'day from Australia! You sound like you are on your path and doing good things. I hope your business is going really well! What is the web address to buy online please? Do you post to
Oz?” - Monique
“Thank you for believing in me and my dream. TopShelf now has 4 employees, without your help it would have been tough to reach this goal.” - Christina
“Did you know that your support helps me to hire 5 more people for this project? We are hiring! Please, spread the news! Thank you so much! Seriously!” - Anna
“You have helped make an almost impossible dream come true.....My heart is warmed and very happy....Be blessed and
prosperous always” - June
…and borrowers can engage directly with their lenders
Lenders can communicate directly with the borrowers they invest in…
Communication on Kiva Zip
14A Two Step Process
1) Create a Trustee ProfileThis is where you will promote the work you do and provide information about your organization.
2) Endorse a BorrowerAn endorsement is four questions about your relationship with the borrower you’re recommending.
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Please join us!
To learn more about the specifics of the Trustee partnership please check out our Trustee Training Manual.
To speak with a Kiva Zip representative please email us [email protected]
www.KivaZip.org