Visa Joins Kiva to Spur Small Business Lending

July 7, 2011

Kiva.org, the microlending Website and Visa Inc., the international bankcard giant, are teaming up to expand small business lending in U.S. cities that have been hard hit by the economic downturn. A kick-off ceremony was held last week in Detroit, which is considered one of the top small business trouble spots in the country.

The Kiva City program aims to spur job growth and economic recovery by connecting Kiva's global network of 592,000 individual lenders with U.S. small business owners. Research by the Economist Intelligence Unit, commissioned by Visa and Kiva, indicates that 20 of the nation's 50 largest metropolitan statistical areas lost at least 1% of their small businesses between 2006 and 2008, or about 15,000 small businesses in all.

Evidencing the project's success, I went to the Kiva Website and attempted to lend to a Detroit area microentrepreneur and the five listed loans were fully subscribed.

Kiva City taps into the power of local communities and business leaders to bring Kiva to their cities, particularly those hard hit by the on-going recession. Working in concert with Kiva and its microlending partners, community leaders will conduct on-the-ground outreach to local small businesses in need. The average loan made by a Kiva field partner in the U.S. is $7,000, Kiva said.

Detroit became the first Kiva City in partnership with Michigan Corps, a social network of lenders committed to positive change in Michigan. Loans in Detroit are being made possible by ACCION USA.

"With the visibility, community group connections and committed loan funds provided by Kiva, we believe Kiva City and its launch in Detroit will serve as a model for bringing solutions to more cities across America," said Gina Harman, President and CEO of ACCION USA.

Additional small business trouble spots identified by Kiva and Visa as potential Kiva Cities include:

• Cleveland-Elmira-Mentor, Ohio
• Miami-Fort Lauderdale-Pompano Beach, Florida
• Pittsburgh, Pennsylvania
• Columbus, Ohio
• Detroit-Warren-Livonioa, Michigan
• Orlando-Kissimmee, Florida
• Minneapolis-St. Paul-Bloomington, Minnesota/Wisconsin
• Kansas City, Missouori/Kansas
• Providence-New Bedfor-Fall River, Rhode Island/Massachusetts
• Milwaujkee-Waukesha-West Allis, Wisconsin

Check out the Kiva Website for more information about the study and identified urban trouble spots.

In 2009, 8% of North American adults were unbanked, compared to 80% of adults in Sub-Saharan Africa

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