Kiva Zip Trustee Overview

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  • Slides 3-7: 10 minutesSlides 9-14: 15 minutes + 5 minutes questionsSlides 15-20: 10 minutes + 10 minutes questions
  • Kiva Zip Trustee Overview

    1. 1. 1 1 US Trustee Introduction Spring, 2013 January, 2014U.S. Trustee Introduction
    2. 2. 2 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
    3. 3. 3 1,000,000+ Lenders 1,000,000+ Entrepreneurs $500,000,000+ Loans 99% Repayment Rate Kiva’s impact to-date
    4. 4. 4 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 Capital We 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
    5. 5. 5 Small businesses create jobs in the United States 2 out of 3 small businesses hired just one additional employee 1 in 3 Full 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
    6. 6. 6 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.
    7. 7. 7 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
    8. 8. 8 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
    9. 9. 9 Help fund entrepreneurs you believe in After 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 work With over a million lenders, Kiva is one of the most heavily visited non-profit websites. Increase the economic vitality of your community Small businesses are the backbone of all communities. Seize the chance to support yours. What’s in it for you?
    10. 10. 10  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
    11. 11. 11 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…
    12. 12. 12 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
    13. 13. 13 “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
    14. 14. 14A Two Step Process 1) Create a Trustee Profile This is where you will promote the work you do and provide information about your organization. 2) Endorse a Borrower An endorsement is four questions about your relationship with the borrower you’re recommending.
    15. 15. 15 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 at contactzip@kiva.org www.KivaZip.org

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