What you’ll learn in this article:
How Kiva defines systemically marginalized communities in the U.S.
The origins of the Kiva U.S. program
The impact of financial inclusion on U.S. entrepreneurs
How you can help change the life of a U.S. small business owner
For 19 years, Kiva has worked to expand financial access to over five million people across 90 countries – reaching those who have been excluded from traditional financial services. But even in advanced economies, financial equity is far from a reality for everyone. In the United States, there is a significant need for financial inclusion, particularly in communities that have been historically and systemically marginalized.
In 2023, Kiva announced ambitious goals to broaden our reach across four key population groups. Today, I am excited to take a deeper dive into our impact strategy focus on systemically marginalized communities in the U.S. and highlight the remarkable outcomes this work is having on communities across the country.
Defining systemically marginalized communities in the U.S.
At Kiva, we’re dedicated to breaking down the barriers that prevent people from accessing the financial resources they need to thrive. Many entrepreneurs face discrimination based on their identity—whether it’s race, gender, sexual orientation, or background. This can make it incredibly difficult for them to secure the funding needed to grow their businesses and uplift their communities.
Take, for example, research released by Goldman Sachs earlier this year, which detail the hurdles Black business owners face when seeking out a business loan. The findings discovered that despite Black small business owners being more likely to apply for loans or lines of credit compared to the national average, they are less likely to receive the full amount they requested and report instances of predatory terms at rates much higher than average.
That’s why we’re focused on extending financial opportunities to those who have been most excluded in the U.S., such as business owners who are LGBTQ+, Black and African American, Latinx/Hispanic, Indigenous, and more. We define these groups as “systemically marginalized communities in the U.S.” Our goal is simple: to ensure that everyone, regardless of their identity or circumstances, has the chance to succeed.
The launch of Kiva U.S.
Small businesses are the backbone of the U.S. economy, comprising 99.9% of all firms and serving as primary employers for the U.S. workforce. Yet, despite their importance, small business owners increasingly struggle to access the capital they need. A staggering 80% of small businesses are unable to secure bank loans, and community banking funds have decreased by over 50% in the past decade.
Recognizing these challenges, Kiva U.S. launched in 2011 as a pilot program to test the viability of Kiva’s crowdfunding platform in addressing these gaps.The program offers U.S. small business owners zero-interest and zero-fee loans up to $15,000, crowdfunded by Kiva lenders from both the local community and around the world.
Kiva U.S. expanded on our ability to harness collective action for social impact through its innovative Hub model. These Hubs, which are economic development organizations acting as local Kiva ambassadors, manage the Kiva borrower pipeline in their regions, similar to the role of local Lending Partners in our international model.
How Kiva supported a Texas entrepreneur to provide fair employment in her community
Kiva U.S. doesn’t just support entrepreneurs–it impacts their employees, families, and entire communities. A powerful example of this ripple effect is Danielle, the owner of Prepped Place, a home services company in Dallas.
“[My grandmother] gave hope and provided employment opportunities to those who would not have been afforded great pay, benefits, and representation in a field that was dominated by men at that time. This helped me realize that a business was more than making money—it's about the impact on the people who surround you.”
With an $8,000 Kiva U.S. loan supported by 159 lenders, Danielle purchased commercial-grade equipment, hired additional team members, and provided branded uniforms for her employees. The success of Prepped Place has allowed Danielle to significantly impact her community by offering stable employment, above-average wages, leadership training, and a dignified work environment—particularly for single mothers. Danielle's commitment to her employees reflects the values instilled in her by her grandmother and exemplifies the transformative power of Kiva U.S.’s focus on systemically marginalized business owners.
Outcomes of financial access for U.S. business owners
Stories like Danielle’s illustrate the positive impacts that access to loans can have on small businesses and their communities. Individual stories matter, but to truly understand efficacy of our program we need to measure our impact at scale, which is why we partner with 60dB (60 Decibels), a global impact measurement firm, to survey outcomes directly from Kiva borrowers themselves.
In 2022, a 60dB survey of 502 individuals, including past Kiva U.S. borrowers and applicants, revealed overwhelmingly positive results that reinforce the value of Kiva's unique funding model. Three out of four borrowers reported that their business outlook improved after receiving a Kiva loan, with increased confidence and reduced stress. Notably, the survey also highlighted the critical need for Kiva’s support, as only one in four respondents said they could have easily found a good alternative to their Kiva loan.
These findings underscore the important role Kiva plays in providing financial access where it’s needed most, and we’re excited to release the 2024 survey results in the coming weeks. Partnerships such as the one with 60dB enable us to hear directly from Kiva U.S. borrowers to ensure our mission is achieving the intended outcomes, while also helping us identify where and how we can scale our impact.
Commitment to expanding support for US business owners
We believe it's our moral imperative to grow our impact, which is why we’ve set an ambitious goal: to support 15,000 systemically marginalized entrepreneurs in the U.S. by 2028. Having already supported 8,000 entrepreneurs since 2011 with $60 million in crowdfunded loans, this goal will nearly double Kiva U.S.’s reach, directly impacting thousands of communities and strengthening local economies through thriving, healthy businesses.
I invite you to join Kiva in our mission to support women, refugees, communities impacted by climate, and systemically marginalized entrepreneurs in the U.S. You can join us as an organization by partnering with us, or as an individual by lending. Together, we can create a world where everyone, no matter their background or circumstances, has the opportunity to achieve their dreams, see their businesses thrive, and chart a more financially stable path for themselves and their families.
With gratitude,
🙏💚
Vishal Ghotge
