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1
US Trustee Introduction
Spring, 2013
January, 2014
U.S. Borrower Introduction

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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

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1,000,000+
Lenders
1,000,000+
Entrepreneurs
$500,000,000+
Loans
99%
Repayment Rate
Kiva’s impact to-date

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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

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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

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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.
A new paradigm – Social underwriting
Traditional Banks Kiva Zip
Traditional banks are
rejecting borrowers
because of their credit
score, years in business,
cash flows, or collateral
Kiva Zip doesn’t evaluate
traditional financial
metrics. We evaluate
borrowers based on their
character, reputation, trust
networks, and relationships

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 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

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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…

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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

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“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

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We require that all borrowers on Kiva Zip:
 Be over the age of 18
 Have a PayPal account or have the ability to set one up
 Are not currently be in bankruptcy or foreclosure.
If you meet these criteria you qualify for a Kiva Zip loan.
We believe in evaluating an entrepreneur’s network to evaluate “credit worthiness”.
We make decisions less based on conventional financial metrics, and more based on
a borrower’s demonstrated social network.
There are two primary components to getting a Kiva Zip loan:
1) Having a Trustee
You must be endorsed by a Trustee in order to qualify for the Kiva Zip program.
A Trustee is meant to add credibility to you as you fundraise on our website, by
vouching for your character and your business.
2) Inviting lenders
We require most borrowers to invite lenders to the Kiva Zip platform before
you’re able to take advantage of our crowd of lenders. We view this is an
important measure of your trust network and hope that these lenders keep you
accountable for repaying the loan.
Qualifications of the Kiva Zip program

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You must be endorsed by a Trustee in order to qualify for a Kiva Zip loan.
Trustees can be any individual or organization who can vouch for you on a
personal and professional level. We’ve partnered with…
To see the Trustees we have partnered with, please visit: zip.kiva.org/trustees
Trustees have no financial or legal liability by endorsing you for the Kiva Zip program.
Trustees can’t be family members, employees, or anyone that would
financially benefit from endorsing you for the Kiva Zip program.
 Small Business Development Centers
 Economic development corporations
 Stores you sell your goods in
 Neighborhood associations
 Startup incubators
 SCORE advisors
 Accountants
 Professors
 Suppliers
 Mentors
 Other small businesses
 Shared workspaces
 Religious groups
 Student groups
 Non profits
1) Having a trustee

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Most borrowers on Kiva Zip have to invite lenders from their own network to fund
their loan, before they are able to take advantage of Kiva Zip’s crowd of lenders. We
view this is an important measure of the borrower’s trust network, and hope these
lenders keep the borrower accountable for repaying the loan.
 For loans under $2,500 we require borrowers (or their trustees) to invite 7 lenders
from within their network
 For loans between $2,500 and $5,000 we require borrowers (or their trustees) to
invite 15 lenders from within their network
The Kiva Zip team has this structure for three primary reasons:
1) Borrowers who invite their own networks on Kiva Zip have a significantly higher
repayment rate.
2) We’ve found that loans fundraise much quicker when the immediate network of
the borrower is engaged in the fundraising period. This naturally expands to the
broader network of that borrower and generates engagement at the local level.
3) The health of the Kiva Zip program is dependent on new lenders that join Kiva Zip
and support our borrowers. Inviting lenders fuels the growth of the Kiva Zip
program, allowing us to support more entrepreneurs.
2) Inviting lenders

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Please join us!
To apply for the Kiva Zip program please visit us at:
zip.kiva.org/borrow
To speak with a Kiva Zip representative please email us at:
contactzip@kiva.org
www.KivaZip.org