Kiva is a nonprofit organization that connects lenders to borrowers around the world to alleviate poverty through microloans. Kiva Zip allows individuals in the US to access small business loans of up to $5,000 through a network of trustees who review applications and endorse borrowers. Trustees can be individuals who know a borrower for 6+ months or organizations providing business support. Borrowers and lenders interact through an online platform, with loans as small as $25 funding within 3-4 weeks. Early results show over 200 loans posted, 120 trustees in 35 states, and an 86% repayment rate building local communities of support.

1. 1
US Trustee Introduction
Spring, 2013

2. Kiva is a 501(c)(3) nonprofit organization, headquartered in San
Francisco, with a mission to connect people through lending to
alleviate poverty. Leveraging the Internet and a worldwide
network of microfinance institutions, Kiva lets individuals lend
as little as $25 to help create opportunity around the world.
What is Kiva?

3. How does Kiva work?
The borrower meets
with the Field Partner
and requests a loan.
1
The Field Partner
disburses a loan to
the borrower.
2
The Field Partner uploads
the loan request to Kiva, it's
reviewed by a team and
then published on Kiva.org
3
Kiva lenders fund the
loan request, and
Kiva sends the funds
to the Field Partner.
4
The borrower makes repayments
and the Field Partner sends funds
owed to Kiva. Kiva repays lenders.
5
The lenders can make
another loan, donate to Kiva,
or withdraw the money.
6

4. How does Kiva make money?
• Tip from lenders
• Grants
• Donations
Because of this Kiva does
not need to charge interest
or fees to borrowers or
participating organizations

5. BUT WHAT ABOUT IN THE DEVELOPED WORLD?
Incredibly successful in the developing world,

6. Specifically, what about in the United States?

7. 25 million microenterprises exist
in the United States
but only 18,000 microfinance loans were made in
America in 20101
1http://fieldus.org/publications/2011CensusFacts.pdf

8. The statistic
“Only 2% of potential U.S. microfinance customers are
being served, compared to 17% in the developing world”2
2http://www.tsys.com/Downloads/upload/fall-ngenuity-journal-2012.pdf

9. Lack of small business lending
And it’s been getting worse…
Feb 2013
Small business loans3 2008 2011 Delta
$1m or less $712b $607b -15%
$100k or less $170b $140b -18%
3 http://www.sba.gov/sites/default/files/sbl_11study%20FINAL.pdf
And loans less than $50k are virtually non-existent

11. MFIs (aka Field Partners) are too few and far
between, and too traditional, in the United States

12. and Trustees

13. Lenders Entrepreneur

14. What do the loans look like?
o 0% interest rate
o First loan can be up to $5k;
subsequent loans up to $50k
o Up to 24 months repayment term
o Grace periods available for
startups and agricultural
businesses
o Repayments made in regular
weekly or monthly installments
o Disbursals and repayments made
electronically via Paypal
o Posted and ‘crowd-funded’ online

15. What are the criteria for the loans?
Minimum requirements:
• The borrower's debt-to-income
ratio (DTI) must be less than
35%
• The borrower cannot have
past-due debt
• The borrower cannot currently
be in foreclosure or bankruptcy
• The borrower's annual income
must be less than $100,000
• The borrower must have both
PayPal and Facebook
accounts
Character assessment:
• Do you deeply trust that the
borrower is 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?
• Do they meet the minimum
requirements for a Kiva Zip
loan?

16. Lenders Trustees Entrepreneurs

17. Trustees
• source Kiva Zip
borrowers
• review their business and
personal finances
• vouch for their character
• publicly endorse them on
the Kiva Zip website

18. Trustees Continued
• have no financial liability
for the loans, but their
reputation is tied to the
repayment rate of the
borrowers they endorse.
• can be either individuals
or organizations.

19. Types of trustees
Organizational
• provide support, training, or
assistance for the business
• help the entrepreneur develop
their business plan or provide
ongoing support for existing
business
• allow the borrower to start with
a 0% interest loan up to $5,000
that is paid back between 10
and 24 months.
Individual
• typically a close friend, mentor,
or advisor
• must have known the
entrepreneur for over six
months and have a good
understanding of the business
• allow the borrower to start with
a 0% interest loan up to $2,500
that is paid back between 3
and 12 months

20. Types of trustees Continued...
A few examples:
• Community Development Corporations
• Community Development Financial Institutions
• Economic Development Corporations
• Local Businesses
• Neighborhood Associations
• Nonprofits
• Religious Groups
• SCORE Advisors
• Small Business Development Centers
• Startup Incubators and Accelerators
• Student Groups and College Professors
• Etcetera

21. The ask
• Kiva Zip is still in the early
(Alpha) stage of development.
• Because of this, there is no
cost and minimal
requirements to join
• We do ask for a nominal time
commitment for the following

22. A bit about who you are, why you are interested in
Kiva Zip, and what due diligence you plan to conduct Trustee Profile

23. + an endorsement
• The four questions the
trustee answers about the
borrower on the Kiva Zip
website.
• The endorsement builds
the borrower’s credibility
and helps lenders decide
whether or not to make a
loan.

24. The in-depth Kiva Zip loan process
Trustee
application
Trustee
endorsement
Loan
application
Trustee
review
1 2 3 4
Trustee fills out
an application
form, explaining
why they want
to be a trustee
This is a one-
time, online
form, and takes
only about 30
minutes to
complete
For every
borrower they
endorse, a
trustee writes a
‘trustee
endorsement’
An endorse-
ment is only a
few questions
long and takes
only about 10
minutes to
complete
When the trustee
has submitted the
endorsement, the
borrower
completes a ‘loan
application’
This is a longer
application form,
and can take a
couple of hours to
fill out. Again, it is
all online to make
life easier!
Once the loan
application is
submitted, the
trustee gets a
chance to re-
view the loan
The trustee
can approve it
if they are
happy with it,
or suggest
changes if
they prefer
Finally, the Kiva
Zip team will
review the loan,
before posting it
to the website to
begin
fundraising
From there,
most loans take
about 3-4
weeks to fully
fund
Kiva Zip
team review
5

25. Why are borrowers so excited about Kiva Zip?
• Ability to access capital
• Zero interest or fees
• Easy, online application
• Flexible loan terms
• Building of community

26. Why are lenders so excited about Kiva Zip?
• Easy, one-click lending
on the Kiva Zip website
• Loans as small as $25,
and lenders can still get
their money back as
borrowers repay
• Cultivation of community,
both on the other side of
the globe and down the
street

27. Why are trustees so excited about Kiva Zip?
• Empower clients
• Engage community
• Promote through Kiva
• Fundraise via impact

28. Why are we so excited about Kiva Zip?
• Cultivation of community
through ‘conversations’
• Radical expansion of
access to capital
• Development and
leveraging of trust
networks

29. Early Returns
• Over 200 loans posted on the Kiva
Zip website
• Over 120 trustees in 35 states
• About a third of loans to startups
• 86% repayment rate
• Building connections and
community between and among
our borrowers and our lenders

30. Theresa Wilson
theresa.wilson@fellows.kiva.org
(330) 814-5069
Join the Kiva Zip
Community today!