From the Desk of:
Executive Vice President for
Neighborhood and Strategic Initiatives
World Business Chicago
We are all navigating unfamiliar territory due to COVID-19 and small and medium-sized business owners are feeling overwhelmed and sometimes alone in their quest to survive. We hope this newsletter will be informative and provide you with some much needed information and counsel.
April is Financial Services Month, so we are highlighting Kiva, a ChiBizHub resource provider that offers a nontraditional financing option for small and medium-sized businesses.
Kiva is an international nonprofit, founded in 2005 in San Francisco, with a mission to expand financial access to help underserved communities thrive. Their crowdfunding platform provides loans and unlocks capital for the underserved, improving the quality and cost of financial services, while addressing the underlying barriers to financial access around the world. Please see the full spotlight below for a compilation of 12 things to know about Kiva US loans.
Lastly, in response to the national health pandemic, we have launched a COVID-19 resource page on our website intended to help you find up-to-date information about all of the governmental, private and nonprofit resources and support available to you and your employees. We have also hosted a series of webinars, offering helpful information on grant programs, local resources and more. You can view all of this information, including the recordings of past webinars, at our ChiBizHub COVID-19 resources page.
Please be sure to review our list of upcoming online classes and events that may be beneficial to you.
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12 Things to Know About Kiva US Loans
1. Kiva is a nonprofit, that envisions a financially inclusive world where all people hold the power to improve their lives: Established in 2005 as the world's first personal micro-lending website, Kiva enables everyday people to pool small lending contributions to provide financial access to entrepreneurs across the globe.
2. Kiva US Loans are between $1,000 - $15,000, with repayment terms between 12 - 36 months, and 0% interest, $0 in fees.
3. Effective immediately, all new Kiva loans are eligible for a 6 month grace period: Borrowers will be asked what grace period they wish to have, automatically they are set at 6 months, but can request lower.
4. Kiva loans can be used for working capital: hiring or paying employees, renting a space, buying equipment, and more are all acceptable loan uses.
5. To be eligible for a Kiva loan, you must be:
a. Over 18 years old
b. Using the loan for business purposes
c. Business must be based in the United States
d. Not engaged in any of the following activities: multi-level marketing / direct sales; federally illegal activities (e.g. gambling, scams, hemp-related products); or pure financial investing (e.g. stocks)
e. Not currently be in foreclosure, bankruptcy, or under any liens.
f. Willing to demonstrate your social capital by having a small number of your friends and family make a loan to you (as little as $25 at a time).
6. The application should take about an hour to complete. The application contains:
a. The opportunity to share one’s personal and business story with prospective lender
b. A place to upload a photo of the borrower and his/her business
c. Internal questions about a borrower’s financial health
7. Kiva review can take between 1-2 weeks. Loans meeting these four qualifications are being prioritized:
1. Profile Quality
2. Business Validation
3. Social Underwriting
8. Kiva fundraising can take as little as 2 days, and as much as 45 days: the average time for US borrowers fundraising on our site right now is 8 days.
9. Kiva is different than the typical crowdfunder:
10. Borrowers can apply at kiva.org/borrow
11. Borrowers can get more information at kivaushub.org/borrower
12. Borrowers can ask questions about their application by emailing firstname.lastname@example.org
A Note to Resource Providers
ChiBizHub averages 1,000 visitors monthly, take a moment to add your events and online workshops to our calendar!
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