Kiva continues to roll through the major metropolitan areas across the US, partnering with municipalities as they fire up their microloan business. Philadelphia is the next city on the list. Kiva announced today their crowdfunded microloans are now available in the city of brotherly love. With the backing of Philly Mayor Michael Nutter, and the Department of Commerce, Kiva City Philadelphia will help grow small businesses and fund entrepreneurs in America’s 5th largest city
Through Kiva City Philadelphia, anyone can choose an entrepreneur they want to support with a loan of $5 or more. Small business loans crowdfunded through Kiva City Philadelphia average $5,000 and are offered at 0% interest with no fees. Beginning today, every dollar lent to an entrepreneur will be matched up to $65,000.
“The City of Philadelphia is excited to partner with Kiva Zip to help Philadelphia’s small businesses grow and access capital,” said Mayor Michael A. Nutter. “Through the Department of Commerce and Kiva, we are committed to finding new and innovative ways to provide funding to small businesses, to help them expand and grow, and to regenerate neighborhood commercial corridors throughout the city.”
Crowdfunded loans can help fill a critical lending gap faced by entrepreneurs whose businesses are too young, too small or too innovative to receive loans from traditional lenders. Nationally, small businesses create two-thirds of all new jobs and if just one in three small businesses could hire one more person, the U.S. would be at full employment.
The Philadelphia initiative is spearheaded by Kiva Zip, Kiva’s U.S.-focused platform that brings crowdfunded microloans to small business owners and aspiring entrepreneurs across the nation. Kiva is a nonprofit with a global community of 1.2 million lenders, who have crowdfunded nearly $650 million in loans to nearly 1.5 million people in 80 countries. Borrowers on Kiva have a 98% repayment rate.
“These small business entrepreneurs have all the elements of success. They have the passion and the plan, but lack just a little bit of capital to start up or expand,” said Premal Shah, President of Kiva. “A single loan, a single business or a single job can help change the trajectory of families, communities, and cities. By lending our support through Kiva Zip, we can all be a part of their success.”
Kiva has launched similar crowdfunding initiatives in Detroit; New Orleans; Los Angeles; Washington, D.C.; Newark, NJ; Richmond, VA; Little Rock, Ark; and several other cities.