Katherine Lynch, the NYC Program Associate for Kiva Zip, explains the best way businesses can apply for a crowdfunded loan.

1. 1
Kiva Zip in NYC

2. 2
 Kiva and Kiva Zip Background
 The Kiva Zip Loan
 Impact to Date
 Cool Findings and Exciting Updates
Contents

3. 3

4. 4

5. 5My Kiva Lending Portfolio

6. 6
1,200,000+
Lenders
1,500,000+
Entrepreneurs
$650,000,000+
Loans
98%
Repayment Rate
A Brief History of Kiva

7. 7
Small businesses create
jobs in the
United States
2 out of 3
small businesses hired just
one additional employee
1 in 3
We 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

8. 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.

9. 9What’s our solution?
Technology
platform
Generous,
patient
capital
Social
underwriting
1 2 3

10. 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

11. 11
 Kiva and Kiva Zip Background
 The Kiva Zip Loan
 Impact to Date
 Cool Findings and Exciting Updates
Contents

12. 12
 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

13. 13
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…

14. 14
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 Trustee
Trustee 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 lenders
We 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

15. 15
Starting a Loan Application
• Trustee Endorsement or No Trustee Application
Drafting a Profile
• Private finances page and public fundraising profile
Application Review
• Trustee review, Kiva NYC Review, HQ Review
Private Fundraising Period
• Required number of lenders to convert to being viewed publicly
Public Fundraising Period
• The wisdom of the crowd
Fully 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

16. 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/

17. 17
 Kiva and Kiva Zip Background
 The Kiva Zip Loan
 Impact to Date
 Cool Findings and Exciting Updates
Contents

18. 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

19. 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

20. 20
 Kiva and Kiva Zip background
 The Kiva Zip Loan
 Impact to Date
 Cool Findings and Exciting Updates
Contents

21. 21$10,000 First Time Loans

22. 22Loan Matching – Thank you Deutsche Bank!

23. 2395% Success Rate to Fund on Kiva Zip

24. 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%

25. 25Social Underwriting Unlocking Access to Capital

26. 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

27. 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

28. 28
Thank you!
Katherine Lynch
katherinel@kiva.org
6508232261