Kiva US: Our Mission
Dreams are universal, Opportunity is not.
Rethinking creditworthiness
Kiva uses social underwriting to determine the creditworthiness of a borrower. We will never reject an entrepreneur because of their credit, net worth, or years in business. We believe that creditworthiness can be established by evaluating your character and reputation.
How is that done? Learn more about Kiva’s innovative approach to social underwriting here.
Why do we lend to Small Businesses?
The “Missing Micro.”
Despite being the primary employers in the United States, small business owners face dwindling opportunities to access capital, with community banking down 50% over the past decade and 80% of small businesses unable to obtain bank loans.
ADVANTAGES OF CROWD-LENDING ON KIVA
Unique loan size
The average loan size of a Community Development Financial Institution (CDFI) is around $12,000. Kiva’s average loan size is $5,000.
We care about character, not credit scores
Kiva uses holistic underwriting criteria with no minimum credit score, household income or time in business and does not take collateral. We are able to serve clients who would otherwise not have access to capital.
Kiva distributes the cost
Traditional micro-lending is expensive and cumbersome. Typical micro-lenders would need to charge 88% APR (Annual Percentage Rate, a.k.a. the cost of the loan to the borrower) to break even on a $2,500 loan.
Access to the financial ladder
Kiva is the first rung of the capital access ladder. When clients graduate out of the Kiva system and are ready for additional financing, they can be referred up the capital ladder to other types of lenders.
Engage all stakeholders in a market
Kiva’s product creates a pipeline of clients for Technical Assistance providers. We also connect Kiva borrowers with local organizations to ensure they thrive through the Kiva process and beyond.
We lend where no one else will
60% of all businesses reporting having been rejected for other forms of financing prior to coming to Kiva.
