small business and startup funding in brooklyn: how kiva zip can help
DESCRIPTION
In 2012, one of the world's largest online crowdfunding platforms Kiva.org launched Kiva Zip USA, a 0% interest PayPal-enabled loan product designed specifically for US small business entrepreneurs who would otherwise not qualify for traditional loans. In the year since, Kiva Zip has successfully helped crowdfund starter loans for 200+ financially-excluded small businesses, and helped these businesses share their ideas and business ventures the crowdfunding community at large. And we know, with your help, we can do even more. - If you know/work for an organization who'd like to partner Kiva Zip by recommending potential beneficiaries of a 0% interest loan, write to us: [email protected] - Learn more about helping small businesses, one $25 loan at a time: https://zip.kiva.org - Support a small business in your own town: https://zip.kiva.org/loansTRANSCRIPT
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Bringing Kiva Zip loans to low-income and financially excluded small businesses
in Brooklyn
Briefing to Brooklyn Chamber of Commerce
April 20131Monday, April 8, 2013
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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
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#10% interest loan product funded
entirely via online crowdfunding
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#2Small starter loans up to $5,000 designed for low
income and/or financially excluded entrepreneurs
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Or ... #3“Getting ordinary folks to fund
loans to those small businesses traditional lending
cannot reach.”
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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
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Kiva Zip: reinventing small biz borrowing
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Kiva Zip: reinventing small biz borrowing
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Kiva Zip: reinventing small biz borrowing
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Kiva Zip: reinventing small biz borrowing
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Trust =
Character + Competence
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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.
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How Kiva Zip works in practice:
Victor’s Cafeto CoffeeshopKiva Zip Story
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Victor, Cafeto and a 0%, $5,000 loan
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Victor’s ‘trustee’, MEDA
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MEDA ‘endorsed’ Victor
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Victor’s ‘crowd’ of lenders
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Lenders expressing support, and even becoming customers
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Victor updating his lenders
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Victor is now 100% repaid…
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…And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!
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…And he’s applying for a second, larger loanfor 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
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Victor then endorsed his friend Rocio for a loan
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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.
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Examples of Organizations partnering Kiva Zip as trustees
SEEDSPOTIncubator, AZ
GREENHORNSnonprofit, small farm-innovation
SYRACUSE UNIVERSITY Institute for Veterans & Military Families
TEAM ETSY LITTLE ROCKCommunity Center for African American Business
St Louis, MO
Oakland City Church (Pastor Josh McPaul)
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Trustees we’re partnering now in Brooklyn
CAMBA,Community Grassroots
& CDFI Flatbush
BOC Netnonprofit & CDFI - social and economic justice
RHONDA Schaller (individual)Artist, Writer, Educator at Pratt
Design Institute
TEAM ETSY New YorkCommunity 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-Uprecently funded via Kiva Zip in March 2013, wants to pay
it forward.
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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
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Other resources: Press, About Kiva, Kiva Zip borrower video
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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
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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
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http://www.kiva.org/live
Watch all loans as they happen live online!
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