- 0% interest rate
- First loan of $5,000. Subsequent loans up to $50,000
- Flexible loan terms
- Up to 24 months terms
- Grace periods available for startups and agricultural businesses
- Repayments made on regular weekly or monthly installments via PayPal
- Fill out Kiva Zip’s Financial Capacity Assessment (for trustee email please use: firstname.lastname@example.org)
- Your total outstanding debt must be less than 30% of your income
- You don’t have any past due debt (defined as more than 30 days past the due date, except up to $1,000 medical debt)*
- Have debt more than 30 days late? These people can help.
- Loan is less than 75% of your income
- You are not currently in foreclosure or bankruptcy
- You have an annual income less than $100,000
- You are over 18 years of age
- You must have a basic social media presence (Facebook, LinkedIn, Twitter, etc.)**
- Your business has a social impact
- Submit your Business Profile (or email your business plan)
*Although credit score is not used to qualify borrowers, a credit report will be pulled to confirm any past due debt.
**If the borrower does not have one, they will need to create an account with at least 5 contacts.
What is Kiva Zip?
Kiva Zip is a website that enables financially excluded and socially impactful entrepreneurs to access 0% interest loans through crowdfunding.
What is “crowdfunding”?
Crowdfunding is a concept that allows anyone (friends, family, strangers, businesses, charities, etc.) to offer character-based loans or grants to entrepreneurs that normally would have difficulty qualifying for a business loan through a bank. Not only is it a proven method for credit-strapped businesses to get capital but it’s also an effective marketing tool.
Entrepreneurs connect to potential lenders and donors through an online platform such as Kiva, IndieGoGo, KickStarter, or others. The entrepreneur posts the amount of funding they seek and interested members make contributions towards the funding goal.
Because fundraising for the capital is done through social media networks, it is important that the borrower or entrepreneur has a social media presence. This is the primary means of communicating with the lenders/donors and “getting the word out” about the business.
How do I apply?
To apply you must first identify R.I.S.E. Financial Pathways as a Trustee. A Trustee is a designated organization or individual that agrees to vouch for an entrepreneur’s character and business viability. Additionally, the Trustee will support the business with technical assistance and mentoring. The Trustee is not financially responsible for the borrower’s loan. However, the Trustee’s reputation is tied to the borrower’s performance, so every time a borrower defaults on a loan it will prevent other borrowers from qualifying for the same program. Every borrower on Kiva Zip must be endorsed by a Trustee. View the R.I.S.E. Trustee profile here.
Here are some things to get you started:
- Pre-qualify by filling out Kiva Zip’s Financial Capacity Assessment (for trustee email please use: email@example.com)
- Go through Kiva Zip’s videos
For more information concerning Kiva Zip please contact Hassan Nicholas at (323) 233-1900 ext. 231 or Hassan@risela.org.