1. 1
0% Interest Financing
& Beginner Farmers

2. 2
Crowdfunds $1mil in loans every 2.5 days

3. 3
xx% Kiva loans are farm + agriculture
stat
3

4. 4
0% interest loan
product funded entirely
via online
crowdfunding

5. 5
....Designed specifically for
small and/or new businesses
that have difficulty securing
traditional financing

6. 6
How Kiva Zip works,
and who it works for?

7. 7
1.“Beginning”
2.“Small”
3.“Strong social ties”

8. 8
“Beginning”“Beginning”
• new, unproven businesses
• little or no track record
• Zip designed as the "first rung of the
credit ladder"
• suits those with short credit histories -
does not assess worthiness using FICO
scores but competence and character
instead

9. • Case Study: XXXX

10. 10
“Too Small”“Too Small”
• Some loans too small to be serviced profitably
• Sulin to dig stats of what is too small a loan for
most lenders
• Small lenders is Kiva's specialty

11. Graph: average US price for a dairy cow $2200
average US Microloan range
Ave Kiva (international) loan = $431
Kiva Zip USA loan range = $1000-$10000

12. 12
specifically around the unique needs
of US micro-entrepreneurs

13. 13
“Strong Social Ties”“Strong Social Ties”
• Kiva Zip qualifies borrowers not by Credit Score
• ...but by the willingness of established
community-based organizations to vouch
(“endorse”) borrowers
• Community Ties and Human Trust are what
count in the Kiva Zip model
• Farming by its very nature is invested in the land,
and rooted in the community

14. • Case Study: XXXX
• 5 quick examples of different support organizations around the country who have
endorsed beginning farmers because they believe in their farms, and in the farmer

15. 6 reasons why Kiva Zip can help you lower
barriers for Beginning Borrowers
Expand access to 0% interest loans
...To small and new farmers not otherwise qualified for
conventional loans
...All loans are crowdfunded online from our lending
community
We also lower cost of lending further by using digital
platforms (PayPal), no overheads = no fees or interest,
only pay back the principal
Which also directly connects farmers with an online
“Social Network” of emotionally invested lenders
These they can then turn into fans, customers and
brand advocates!

16. 16
So yes, it’s a great vehicle.
But the real fuel is you.

17. 17
So yes, it’s a great vehicle.
But the real fuel is you.
In the Kiva Zip model of character-based lending, “Trustees” - organizations or
individuals that work closely with small entrepreneurs - are absolutely crucial.
Trustees are those entrusted to:-
Identify eligible and deserving borrowers for 0% interest loan
Publicly endorse them on the Kiva Zip website
Support the borrower in their business (advice, mentorship, incubator space,
networking)
Trustees have no financial risk if a borrower they endorse does not
repay, but their reputation is tied to borrowers’ performance.

18. In general, Trustees should endorse only those entrepreneurs who
They trust to repay (character-based assessment)
Possess the financial ability to repay (a new loan doesn’t increase indebtedness)
Borrowers: which farmers should you endorse?
Character AssessmentCharacter Assessment
Kiva Zip leaves it up to trustees to makeKiva Zip leaves it up to trustees to make
a judgment call in these areasa judgment call in these areas
Financial CriteriaFinancial Criteria
Must be met unless there are exceptionalMust be met unless there are exceptional
circumstancescircumstances
•Do you deeply trust that they are 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?
•The borrower's debt-to-income ratio must be less
than 35%
•The borrower cannot have over $3,000 in past-
due debt
•The loan must be less than 75% of the
borrower's income
•The borrower cannot currently be in foreclosure
or bankruptcy
•The borrower's annual income must be less than
$100,000
•The borrower must be over 16

19. 19
Kiva Zip needs more trustees
willing to endorse the farmers they believe in
willing to endorse the farmers they believe in
• 3 Things you can do right now to start becoming a trustee
1. Think of 1 deserving borrower you know right now who
could use a loan <$5000 - your pilot borrower
2. Think about why you TRUST in this farmer’s
competence, and their character, and whether he/she
is someone you’d vouch for - Y/N?
3. If Yes, send an email to Kiva’s New York rep:
Sulin.Lau@fellows.kiva.org
19

20. End with a Story

21. 21
By working together,
we hope to have 100
of these stories this
time next year.

22. What’s in it for trustees?
Empower
Clients
If you already work with financially excluded clients (unproven
startups, or low credit score entrepreneurs)...
Kiva Zip will give the clients you endorse access to 0% business
loans they would otherwise not qualify for
Promote
what you do
If you already do great work in your community that largely goes
unrecognized or unpromoted...
being a Kiva Zip trustee automatically allows you to promote
your work (in your own words) to >1 mil socially-conscious Kiva
lenders everywhere. Also participate in Kiva PR initiatives.
Increase
Impact,
Help
Fundraise
If your organization’s potential funders care about tangible
impact (businesses helped, $$ generated, jobs created)...
Kiva Zip helps you help more small businesses take off, faster.
Endorsing a deserving borrower online takes 15min. Reducing
time and cost for raising capital means you can impact more.