KANSAS CITY, MO – January 29, 2024 – The Economic Development Corporation of Kansas City (EDCKC), in collaboration with the City of Kansas City, Missouri’s BizCare office, has partnered with KivaUS to launch a local hub, Kiva Kansas City (KivaKC), in an effort to assist underestimated entrepreneurs and small business owners with accessible and affordable starting capital.
KivaUS is the United States branch of Kiva, an international nonprofit founded in 2005 that connects business owners with over two million lenders located through their online crowdfunding platform, Kiva.org. Through the newly formed KivaKC, members of the Kansas City community can sign up to lend money to either local or international entrepreneurs.
“KivaUS is excited about entering the Kansas City market to provide affordable capital. Through our Kansas City, MO Kiva Hub, EDCKC will fill a gap in financing entrepreneurs with our crowdfunded, 0% interest loans. We've found that identifying capital is one of the biggest challenges our business owners cite. As a result, you will see entrepreneurs become economic engines in their communities after not only receiving capital, but also receiving technical support from EDCKC and community partners,” stated Warren S. Galloway, Senior Partnership Manager, KivaUS.
Kiva loans use social underwriting and target business owners who have had difficulties securing traditional bank loans. Kiva loans are offered at 0% interest with no fees. Borrowers who apply and get approved for a Kiva loan must have between 5-40 of their friends, family, or personal network lend as little as $25 to their loan. This proves a borrower’s creditworthiness and is part of Kiva’s social underwriting process. Once a borrower has reached their lender goal, they are listed on Kiva’s online platform, where they raise the remaining balance of their approved loan amount.
“Our intent with the new crowdfunded loan program is to create more opportunities for our KC entrepreneurs to get access to affordable starting capital for their businesses,” said Nia Richardson, managing director of small business and digital equity with the City of Kansas City. “The National League of Cities really helped to make this possible through their CIE program and grants for microlending. Their program gave us the tools and resources we needed to bring the first hub to Kansas City.”
Last year, the City of Kansas City participated in the City Inclusive Entrepreneurship (CIE) program with the National League of Cities for microlending. Through its participation, Kansas City committed to building a platform for microlending to serve entrepreneurs without access to traditional finance. The commitment included the establishment of a local Kiva Hub and the hiring of a new Capital Access Manager to implement the program. The City of Kansas City partnered with EDCKC to bring the first Kiva hub to Kansas City and is a component of its new small business “starting” capital programs launching in 2024.
“We’re happy to partner with the City of Kansas City to establish a Kiva hub in our region. This relationship will allow us to guide and support crucial small businesses that help our economic ecosystem expand, while also bringing in disadvantaged participants that are typically excluded,” said Tracey Lewis, President and CEO of EDCKC.
“I’m excited to take on the role of Capital Access Manager for KivaKC and help minority and female entrepreneurs regain control of their finances. I’ll be able to walk interested borrowers through the Kiva application, fundraising, and repayment process, locally in Kansas City, making the program even more accessible,” said Regina Sosa, Capital Access Manager with EDCKC.
Kiva and EDCKC welcome area business owners to apply for loans ranging from $1k - $15k. Applicants must be at least 18 years old, not actively in bankruptcy or foreclosure, and the loan must be used for businesses that are legal on a federal level.
Interested borrowers should contact: Regina Sosa, KivaKC Capital Access Manager kansascity@local.kiva.org
Media Contacts:
KivaKC: Kathryn Jones, Principal, Highline Partners, kj@highln.com
Kiva: Brit Heiring, Director of Communications, brith@kiva.org
About EDCKC
The Economic Development Corporation of Kansas City, Missouri, is a 501c4 agency that works to retain and grow its resident businesses, attract high opportunity companies, and attract and retain a skilled and diverse workforce. The goal of EDCKC is to foster continued and sustainable growth that benefits a vibrant and diverse community. To learn more, visit edckc.com.
About KC BizCare
About KC BizCare: The City of Kansas City, Missouri office for small business, KC BizCare is a free business resource, advocacy and information center for new and existing businesses operating within the city. Since starting in 2009 our office has supported thousands of entrepreneurs, each receiving technical assistance with business registration (state, federal, city), licensing (city), navigating the city departments for required permits, and resource referrals into the local small business eco-system. To learn more, visit bizcare.kcmo.gov.
About KivaUS
Kiva is a nonprofit organization founded in 2005 that envisions a world where everyone has the financial access they need to thrive. Through crowdfunded loans, Kiva connects individuals, investors, and corporations to those without financial access. For as little as $25, people can make a one-to-one impact for women, refugees, small businesses, and marginalized communities worldwide. After the success of the international model, Kiva launched the KivaUS program in 2011. Entrepreneurs apply directly to KivaUS and are connected to millions of Kiva lenders to crowdfund their loans up to $15,000, with no interest and no fees. It also enables local lenders to make direct loans, as little as $25 to entrepreneurs in their neighborhoods.
