Kiva Blog Updates

Climate adaptation: The long view of dealing with climate change

Jessica Leigh Lebos — Sat, 22 Apr 2023 16:03:28 +0000

Millions of people around the world are already adapting to the effects of climate change. Many vulnerable communities have been displaced and forced to migrate. Others are experiencing extreme heat, violent storms, floods, fires, and rising seas caused by the planet’s warming temperatures.

Reducing greenhouse gas emissions can help slow the causes of climate change, but since the effects of climate change are already being felt, strategies must be implemented to protect people’s homes, food supplies, and livelihoods.

If humanity is going to survive climate change, we are going to have to learn to live with it — and help others adapt as well.

What is climate adaptation?

Adaptation means figuring out how to live with the effects of climate change. This requires a long-term vision for the future that means changing the way we grow food, build our homes, and modify our lives to better adapt to a new environment.

Climate adaptation focuses on the future, coming up with strategies for agriculture, energy, and other essential sectors.

How does climate adaptation differ from climate mitigation?

Climate mitigation focuses on what needs to be done immediately to reduce carbon emissions and slow down the causes of climate change. This involves reducing carbon emissions to prevent further warming of the planet. Climate change adaptation means learning to live with the changes that have and will come from climate change.

How does climate adaptation differ from climate resilience?

Climate resilience is the capacity to cope with serious climate events. Planning, preparation, and anticipation of shocks are needed to help people and communities recover quickly and efficiently.

Challenges with climate adaptation

Climate change currently impacts millions already at risk of political instability, food insecurity, lack of services, and other harsh conditions which are intensified by environmental disaster. These communities are in the most need of climate adaptation resources, but are the least able to fund and implement strategies. For countries that already struggle with meeting the basic needs of their citizens, these plans can seem like an insurmountable challenge.

The United Nations estimates that by 2030 adapting to the changing environment will cost developing countries US$300 billion each year, which is meant to be offset by wealthier countries as set forth by the Paris Climate Agreement. As of now, only 21% (about US$16.8 billion) of financial resources contributed by wealthier countries is directed to people in these vulnerable countries.

In the meantime, many countries are already coming up with their own ways to adapt to climate change.

Read more: 5 ways to actively help the earth

Climate adaptation strategies

While the United Nations Committee on Climate Change says there is no “one size fits all” solution for climate adaptation, it does have a framework for supporting individual countries’ strategies for facing the future.

The United Nations Environment Programme (UNEP) assists efforts in over 50 countries with programs that include:

Ecosystem-based adaptation — Implementing projects that use existing biodiversity and ecosystem services.
Knowledge, analysis and networking — Utilizing global networks to share information and resources between countries.
World Adaptation Science Programme — Overseeing a common platform for the adaptation research community and global decision-makers.
Access to adaptation finance — Supporting governments and partners in obtaining funding for climate responses and innovations.
National Adaptation Plans — Helping individual countries navigate the National Adaptation Plan (NAP) process. The NAP process seeks to identify medium- and long-term adaptation needs, informed by the latest climate science, and then plan strategies to address major vulnerabilities.

Kenya submitted a National Adaptation Plan in 2017 to address increased flooding and worsening drought conditions related to famine, disease, and lack of access to clean water. The plan also directs effort into adapting to rising sea levels in the country on the coast of East Africa and devotes resources into strengthening fisheries, agriculture, and other food chain sectors in Kenya for its most vulnerable populations.

Adaptation measures are making a difference in the Philippines, where rising seas, food insecurity, and storm surges threaten properties and livelihoods. Since the government passed the Climate Change Act in 2009, the Philippines has supported flood-resistant infrastructure projects and improved financial safety nets for coastal farmers.

In Costa Rica, where climate change was named the government’s number one priority in 2007, a plan of comprehensive adaptive climate strategies was recently announced to fast-track the country’s readiness. It includes plans for the adaptation of public services, production systems, and infrastructure, and the implementation of nature-based solutions.

Read more: Can solar power transform a billion lives by 2030? Social enterprise d.light is making it happen with the help of Kiva lenders

Covering the costs of climate adaptation

Alphas' Kiva loan gave him access to high-quality agricultural inputs, advice, and insurance from Apollo Agriculture.

Building climate-resilient infrastructure, improving food security, and evolving the way we live takes money, and plenty of it. While some countries have the resources to cover the costs of climate adaptation, many do not.

As mentioned above, the Paris Agreement, as well as the Kyoto Protocol, requires these wealthier countries — which are responsible for the majority of greenhouse gas emissions — to offset the needs of less developed countries. To this end, several funds have been established to direct financial resources towards the governments of these nations.

But what about individuals, many of whom have the least power or ability to adapt to climate change and are the most vulnerable to loss? There are ways to help people around the world adapt to climate change and increase their resilience. One of these avenues is microfinance, which increases access to loans and other financial services to those previously excluded from traditional banking.

Microloans can improve quality of life for farmers and provide much-needed capital to help them implement adaptive strategies, such as drought-tolerant maize that increases crop yields in the face of unpredictable rainfall. Microloans also offer ways for individuals to diversify their livelihoods and create new revenue streams as the environment continues to change.

For lenders, loans provide an opportunity to support others — after all, we are all living on the same planet.

Make an eco-friendly loan today

Tags:

kiva

kiva microfunds

loans

microfinance

lending

Category of core post:

Kiva blog posts

Climate adaptation: The long view of dealing with climate change

Jessica Leigh Lebos — Sat, 22 Apr 2023 16:03:28 +0000

What is climate adaptation?

How does climate adaptation differ from climate mitigation?

How does climate adaptation differ from climate resilience?

Climate resilience is the capacity to cope with serious climate events. Planning, preparation, and anticipation of shocks are needed to help people and communities recover quickly and efficiently.

Challenges with climate adaptation

Climate adaptation strategies

Ecosystem-based adaptation — Implementing projects that use existing biodiversity and ecosystem services.
Knowledge, analysis and networking — Utilizing global networks to share information and resources between countries.
World Adaptation Science Programme — Overseeing a common platform for the adaptation research community and global decision-makers.
Access to adaptation finance — Supporting governments and partners in obtaining funding for climate responses and innovations.
National Adaptation Plans — Helping individual countries navigate the National Adaptation Plan (NAP) process. The NAP process seeks to identify medium- and long-term adaptation needs, informed by the latest climate science, and then plan strategies to address major vulnerabilities.

Covering the costs of climate adaptation

Alphas' Kiva loan gave him access to high-quality agricultural inputs, advice, and insurance from Apollo Agriculture.

Make an eco-friendly loan today

Tags:

Category of core post:

Kiva blog posts

Make a difference through climate change mitigation

Jessica Leigh Lebos — Fri, 21 Apr 2023 18:11:55 +0000

A Kiva loan helped Catherine purchase solar-powered lanterns to sell in her community in Uganda.

Climate change has brought humanity its greatest challenge — and perhaps its best opportunity to unite — as disruptions increasingly affect environments, economies, and people’s lives around the world. The most immediate action we can take is to try to mitigate the continued changing of our climate, as we lay the groundwork for building resilience and adaptation for the future.

As countries and individuals learn improved ways to grow food, engineer infrastructure, and utilize new forms of energy, we must act now if these new strategies are to be successful. Climate change mitigation can make the difference.

What is climate change mitigation?

Mitigation means implementing actions that slow down the causes of climate change. This specifically involves reducing carbon emissions to prevent further warming of the planet. Strategies for climate change mitigation include policy changes and industry regulations.

Scientists have proven that the main cause of climate change is human activity; particularly the emission of greenhouse gasses from fossil fuels like oil, coal, and natural gas. As they are burned, these carbon-based fuels release gasses that cover the planet, insulating it like a sweater. This prevents heat from dissipating into space and causes global temperatures to rise.

Carbon dioxide (CO2) and methane are the two most prevalent greenhouse gases. The massive amounts of CO2 in the environment are from over a century of burning fossil fuels. Commercial agriculture — particularly the raising of cattle — and landfill storage have contributed to the dangerous levels of methane trapped in the atmosphere.

By definition, climate change mitigation includes the actions policymakers, industry leaders, and communities can take right now to reduce greenhouse gas emissions and help stabilize the planet’s temperature.

Read more: Climate resilience: How to help smallholder farmers respond to climate change

Strategies to mitigate climate change

While there is no “one size fits all” solution to climate change mitigation, scientists advise that the immediate reduction of greenhouse gasses emitted can help blunt its worst effects. “Net zero” is the term for reducing emissions to as close to nothing as possible and must be reached by 2050 in order to prevent the planet from warming beyond 1.5°C, which is necessary to avert the worst impacts of climate change and preserve a livable planet.

Policymakers and industry leaders have the power to make a tremendous difference in reaching net zero with legislation and budgeting that prioritizes:

Retrofitting existing public buildings and infrastructure
Adopting renewable energy sources
Investing in sustainable transportation
Slowing deforestation

Countries that have signed on to the Paris Agreement to address climate change are working to implement these strategies, though economic disparity can prevent some countries from reaching their climate change mitigation goals. It is not only imperative that the planet’s wealthier governments provide support towards global efforts to reduce greenhouse gas emissions, it is also part of the accord.

Article 4 of the Paris Agreement states that “developed countries should continue to take the lead” in reduction targets, while “developing countries should continue enhancing their mitigation efforts and are encouraged to move toward economy-wide targets over time in the light of different national circumstances.”

These large changes made at a societal level will be extremely effective at reducing emissions worldwide.

Read more: How entrepreneurs are using their Kiva U.S. loans to mitigate climate change

Can I personally help mitigate climate change?

Catherine is a Solar Sister — a group of female entrepreneurs who sell solar energy products to their communities.

You might not think that one person can make a difference in staving off the effects of climate change. Certainly, world leaders and industry giants have the biggest opportunity to reduce the bulk of greenhouse gas emissions. But by cutting back on our own carbon emissions and supporting sustainable practices, we can make a collective impact.

We can each personally mitigate climate change by:

Using electricity more efficiently
Driving less
Eating less red meat
Buying from local farmers
Recycling clothing items or buying secondhand
Holding representatives accountable for climate change policies

As millions of people adopt and adapt to these practices, we can help bring our planet closer to net zero — and direct humanity to a better future right now.

Read more: 5 ways to actively help the earth

How can I help others’ mitigation efforts?

In addition to adopting more efficient habits to reduce our emissions, we can support other people’s efforts to mitigate climate change by investing in eco-friendly loans. Here are a few ways:

Back sustainable agriculture. Buying products from local farmers reduces transportation emissions, and organic produce uses less energy without harming wildlife. We can help sustainable farmers all over the world by helping provide capital for seeds, fertilizer, and more efficient equipment.
Make solar power accessible. While people in some countries use too much energy, others don’t have any at all. Contributing to the effort to bring safe, affordable electricity to developing communities is easy. Read more about how Kiva partner d.light aims to bring solar power to one billion people by 2030, with the help of Kiva lenders.
Reduce emissions from cooking. More than 2.6 billion people burn charcoal, kerosene, and other dangerous carbon-releasing fuels to prepare their meals. We can help them acquire clean cookstoves that reduce pollution in homes and the atmosphere.
Turn organic waste into renewable energy. Biodigesters turn food waste into renewable energy that is used for fertilizer on farms and reduces the carbon footprint of a business.

Funding these services can make it affordable for people around the world to take steps to mitigate climate change and face the future of a changing planet together.

Make an eco-friendly loan today

Tags:

Category of core post:

Kiva blog posts

Make a difference through climate change mitigation

Jessica Leigh Lebos — Fri, 21 Apr 2023 18:11:55 +0000

A Kiva loan helped Catherine purchase solar-powered lanterns to sell in her community in Uganda.

What is climate change mitigation?

Strategies to mitigate climate change

Retrofitting existing public buildings and infrastructure
Adopting renewable energy sources
Investing in sustainable transportation
Slowing deforestation

Can I personally help mitigate climate change?

Catherine is a Solar Sister — a group of female entrepreneurs who sell solar energy products to their communities.

Using electricity more efficiently
Driving less
Eating less red meat
Buying from local farmers
Recycling clothing items or buying secondhand
Holding representatives accountable for climate change policies

How can I help others’ mitigation efforts?

In addition to adopting more efficient habits to reduce our emissions, we can support other people’s efforts to mitigate climate change by investing in eco-friendly loans. Here are a few ways:

Back sustainable agriculture. Buying products from local farmers reduces transportation emissions, and organic produce uses less energy without harming wildlife. We can help sustainable farmers all over the world by helping provide capital for seeds, fertilizer, and more efficient equipment.
Make solar power accessible. While people in some countries use too much energy, others don’t have any at all. Contributing to the effort to bring safe, affordable electricity to developing communities is easy. Read more about how Kiva partner d.light aims to bring solar power to one billion people by 2030, with the help of Kiva lenders.
Reduce emissions from cooking. More than 2.6 billion people burn charcoal, kerosene, and other dangerous carbon-releasing fuels to prepare their meals. We can help them acquire clean cookstoves that reduce pollution in homes and the atmosphere.
Turn organic waste into renewable energy. Biodigesters turn food waste into renewable energy that is used for fertilizer on farms and reduces the carbon footprint of a business.

Funding these services can make it affordable for people around the world to take steps to mitigate climate change and face the future of a changing planet together.

Make an eco-friendly loan today

Tags:

Category of core post:

Kiva blog posts

Can solar power transform a billion lives by 2030? Social enterprise d.light is making it happen with the help of Kiva lenders

Jessica Leigh Lebos — Thu, 20 Apr 2023 21:10:47 +0000

A $100,000 Kiva loan helped to purchase clean cookstoves that will be financed for more than a thousand households in Kenya

For the 940 million people around the world without access to electricity, solar power can be the quickest, most affordable way to light up their lives. The global solar social enterprise d.light intends to reach each and every one of them.

Since 2008, d.light has helped put solar-powered lanterns, cookstoves, TVs, radios, and other products into the homes of more than 100 million citizens in 70 countries. This year, the company announced a new goal: To transform a billion lives with its products by 2030.

They’re already on their way toward that target, and a partnership with Kiva is making d.light’s solar devices more accessible in more locations than ever before.

A light in the dark

“While it’s about unlocking affordability for transformational products that allow people to have internet access for the first time, we also need to find big opportunities.”

Founded by Stanford students Sam Goldman and Ned Tozun, d.light was inspired by Goldman’s time in Benin as a Peace Corps volunteer, where he witnessed a neighbor suffer terrible burns from an accident with a kerosene stove. Back at school, he and Tozun developed a practical solution that used safe solar power for cooking and light, along with low manufacturing costs to make their products affordable to underserved communities.

Investors backed the idea, and d.light launched first in India, then expanded into Africa and Asia. While the simple solar lanterns were inexpensive enough to be sold for cash or on a pay-as-you-go basis, larger products like mobile charging stations and cookstoves required more payment options.

“In India, we ended up partnering with microfinance institutions to provide financing,” explains Karl Skare, d.light’s Managing Director of Global Partnerships and Strategy.

“However, when we tried to replicate that same model in East Africa, microfinance institutions weren't really interested. As a new sector, they weren't quite comfortable with the technology.”

Accessibility also proved a challenge. In many developing countries, lack of a commercial framework can prevent products from finding their way into a market or store.

“We realized that distribution was very difficult in these markets because there wasn't really a distribution infrastructure for rural populations we were trying to reach,” says Skare.

“There was distribution for fast-moving consumer goods like salt or bread or things like that, but not a channel to reach those same rural customers with a consumer electronic. We had to build our own distribution in all of these different countries that we entered.”

A Kiva loan through d.light helped to purchase solar home systems that will be financed for rural customers in Namibia.

As demand grew for larger products, such as entire solar home systems and TVs, d.light expanded its role in order to bring rural communities a safe way to power their homes, continues Skare.

“We had to become a bank, a distribution company, and a product company all rolled up into one. And that's kind of our business today.”

Read more: Kiva Labs launched its largest ever loan to fund affordable solar energy in one of the world’s least electrified countries

Two kinds of business models

As d.light rocketed towards its first goal of serving 100 million customers, it split between two types of operations. The first, a vertically integrated business model, employs large teams of people on the ground that directly handle everything from distribution to sales to financing, all the way to the end customer.

The company currently runs vertically integrated operations in Uganda, Kenya, Tanzania, Nigeria, and India, though the tremendous amount of bandwidth and capital required to implement this model limit it in other locations.

“We also want to reach people outside of that small handful of countries with our products, so we work through partners that essentially provide the same role that a vertically integrated entity would,” says Skare.

“They're providing the sales, marketing, distribution, financing, et cetera, in these other countries, but they are a separate company.”

This second business model is where the partnership with Kiva comes in. By using microfinance tools to raise capital, d.light can help its partners weather unstable markets and bring more solar products to more people.

“This is a very capital-intensive business. We are constantly raising equity and corporate debt, and our partners are facing the same struggles. What the Kiva loans allow us to do is pass on those loans directly to our partners in the form of extended payment terms,” says Skare of working with these small businesses.

“So let's say, instead of having to pay d.light back in thirty days after shipment, now maybe it's six months instead. That gives them time for the products to arrive, and maybe get the first few payments from customers before they have to pay us. So it's a working capital facility for our partners.”

Olusheno, a local social enterprise based in Namibia, celebrating their second Kiva loan through d.light.

Kiva Senior Investment Manager Manon Genouille explains further how the loans work to help distributors located on the African continent in markets where d.light is not vertically integrated or does not have an internal distribution network.

“In these markets, d.light carefully selects one distributor per country and provides holistic business support to promote the distributor’s growth,” says Genouille.

“It is exciting for us to see how successful the partnership has been, and how quickly d.light is scaling their funding with Kiva.”

Read more: 5 ways you can actively protect our environment

Helping small businesses grow

“Given the excellent repayment track record and use of the credit line, Kiva was able to double d.light’s credit line in just under two years, which is quicker than most partnerships.”

Since establishing the partnership with Kiva in 2019, d.light has grown past the initial $400,000 credit line and now offers distributors larger working capital loans ranging from $50,000 to $100,000 to meet customer demand.

“Given the excellent repayment track record and use of the credit line, Kiva was able to double d.light’s credit line in just under two years, which is quicker than most partnerships,” Genouille reports.

“This increased credit line allows d.light to not only support additional distributors in new countries, but also provide additional funding to existing distributors.”

To date, Kiva lenders have supported d.light operations and distribution in the following countries:

Benin
Kenya
Liberia
Madagascar
Mali
Mozambique
Namibia
Nigeria
South Africa
Zambia
Zimbabwe

As distribution channels become more established, d.light intends to grow its solar-powered offerings into communication and other sectors. From ultra-efficient smart TVs to smartphones to transportation, these new products will not only bring more connectivity to their customers but are essential to the mission of reaching the entire world.

Kiva staff visiting d.light in Kenya.

“While it’s about unlocking affordability for transformational products that allow people to have internet access for the first time, we also need to find big opportunities,” enjoins Skare.

“We can't be focused on small and niche products because we're trying to impact a billion lives. We're focusing on product categories that have massive market potential. And financing is the missing piece to unlock that potential.”

Working with Kiva to access that financing is key to bringing clean energy and advancing communication capabilities to areas that still currently burn polluting fuels and have no access to the digital technologies that power other areas of the globe.
Larger loans “provide the needed funding for distributors to purchase d.light products to meet customer demand and as such, enable [and] democratize access to solar energy in their markets,” says Genouille, who hopes that Kiva and its lenders continue to support the partnership.

“In the future, we would love to be able to support d.light with other products as needed, as well as expand our offering to other continents [and] regions where d.light is present, such as Asia.”

Skare estimates that more than 350,000 people thus far have been impacted by Kiva loans that enabled them to access d.light products. While that may be a small drop in the bucket of the billion lives the company intends to transform in the next seven years, Skare believes that the company’s tremendous goal is most definitely on track.

“We're early on in that exponential curve, and now we just need to really get it revving,” he affirms.

“It's definitely still within reach.”

Support a solar energy loan today

Tags:

Category of core post:

Kiva blog posts

Can solar power transform a billion lives by 2030? Social enterprise d.light is making it happen with the help of Kiva lenders

Jessica Leigh Lebos — Thu, 20 Apr 2023 21:10:47 +0000

A $100,000 Kiva loan helped to purchase clean cookstoves that will be financed for more than a thousand households in Kenya

A light in the dark

“While it’s about unlocking affordability for transformational products that allow people to have internet access for the first time, we also need to find big opportunities.”

A Kiva loan through d.light helped to purchase solar home systems that will be financed for rural customers in Namibia.

Two kinds of business models

Olusheno, a local social enterprise based in Namibia, celebrating their second Kiva loan through d.light.

Helping small businesses grow

“Given the excellent repayment track record and use of the credit line, Kiva was able to double d.light’s credit line in just under two years, which is quicker than most partnerships.”

Benin
Kenya
Liberia
Madagascar
Mali
Mozambique
Namibia
Nigeria
South Africa
Zambia
Zimbabwe

Kiva staff visiting d.light in Kenya.

Support a solar energy loan today

Tags:

Category of core post:

Kiva blog posts

Can solar power transform a billion lives by 2030? Social enterprise d.light is making it happen with the help of Kiva lenders

Jessica Leigh Lebos — Thu, 20 Apr 2023 21:10:47 +0000

A $100,000 Kiva loan helped to purchase clean cookstoves that will be financed for more than a thousand households in Kenya

A light in the dark

“While it’s about unlocking affordability for transformational products that allow people to have internet access for the first time, we also need to find big opportunities.”

A Kiva loan through d.light helped to purchase solar home systems that will be financed for rural customers in Namibia.

Two kinds of business models

Olusheno, a local social enterprise based in Namibia, celebrating their second Kiva loan through d.light.

Helping small businesses grow

“Given the excellent repayment track record and use of the credit line, Kiva was able to double d.light’s credit line in just under two years, which is quicker than most partnerships.”

Benin
Kenya
Liberia
Madagascar
Mali
Mozambique
Namibia
Nigeria
South Africa
Zambia
Zimbabwe

Kiva staff visiting d.light in Kenya.

Support a solar energy loan today

Tags:

Category of core post:

Kiva blog posts

Can solar power transform a billion lives by 2030? Social enterprise d.light is making it happen with the help of Kiva lenders

Jessica Leigh Lebos — Thu, 20 Apr 2023 21:10:47 +0000

A $100,000 Kiva loan helped to purchase clean cookstoves that will be financed for more than a thousand households in Kenya

A light in the dark

“While it’s about unlocking affordability for transformational products that allow people to have internet access for the first time, we also need to find big opportunities.”

A Kiva loan through d.light helped to purchase solar home systems that will be financed for rural customers in Namibia.

Two kinds of business models

Olusheno, a local social enterprise based in Namibia, celebrating their second Kiva loan through d.light.

Helping small businesses grow

“Given the excellent repayment track record and use of the credit line, Kiva was able to double d.light’s credit line in just under two years, which is quicker than most partnerships.”

Benin
Kenya
Liberia
Madagascar
Mali
Mozambique
Namibia
Nigeria
South Africa
Zambia
Zimbabwe

Kiva staff visiting d.light in Kenya.

Support a solar energy loan today

Tags:

Category of core post:

Kiva blog posts

Small business, big impact: Entrepreneurs use their Kiva U.S. loans to mitigate climate change

Kaylin Lang — Mon, 17 Apr 2023 22:02:57 +0000

At Kiva, we don’t wait for Earth Day to examine and address the undeniable truth; namely, that climate change is a defining issue of our time.

For us and many of our lender community, climate has been – and continues to be – a main focus area. Last year Kiva reached almost 100,000 people with climate-smart loans*. That's nearly one person every five minutes.

These are loans that support climate change-impacted people. Loans that promote environmental justice. Loans that facilitate the mitigation of, adaptation to, and resilience in the face of climate change.

Since the start of the Kiva US program in 2011, we’ve made possible the crowdfunding of 550+ such loans within the U.S. That’s more than $4.3MM in capital.

Hundreds of Kiva US borrowers have crowdfunded climate-friendly loans, and they’ve used these (0%-interest, zero-fee, zero-collateral) loans to continue taking ambitious action toward creating positive environmental outcomes needed to tackle the climate crisis.

Below we’re highlighting a few of these individuals who know that no act is too small in the fight to curb climate change, who prioritize people and planet over profit, and who have been able to foster increased awareness of the importance of sustainability in their communities.

Read more: 5 Ways to Help the Earth

Rachel in Bayfield, Wisconsin

Rachel's Kiva loans helped expand offerings of eco-friendly wellness and goods for her community.

Rachel just crowdfunded her third Kiva loan. An entrepreneur with a deep interest in and passion for sustainable living, Rachel is proud of the small, woman-owned, organically-operated body care brand she’s been able to build over the past decade, Good Flower Farm; and she’s thankful to be able to weave her passion for sustainability into her business:

"We’ve been committed since the beginning to sourcing the most ethical and sustainable ingredients we can - even growing some ourselves! - and continue to improve our packaging and production & shipping methods to move toward zero waste.”

“From the inception of my business, the focus was always around environmental sustainability. With a background in environmental education, I couldn’t imagine building a business that doesn’t educate consumers on sustainability, which we do as much as possible. We’ve been committed since the beginning to sourcing the most ethical and sustainable ingredients we can - even growing some ourselves! - and continue to improve our packaging and production & shipping methods to move toward zero waste.”

Good Flower Farm funnels 1% of all sales to environmental organizations through their partnership with 1% for the Planet, and they are also certified cruelty-free through Leaping Bunny.

“This [third Kiva] loan will help us fulfill our dream of bringing more consciously-sourced good-for-us-good-for-the-earth offerings to our town that currently has to travel at least 30 minutes for things like this.”

Ian in Iowa City, Iowa

Ian’s Kiva loan helped his sustainability-focused coffee shop reach new customers in the community.

Ian radiates pride as he describes how his sustainability-oriented coffee shop, Daydrink, also facilitates community and connection:

"I like the idea that you can build a sustainability-focused company in the middle of Iowa and still make a global impact."

“I like the idea that you can build a sustainability-focused company in the middle of Iowa and still make a global impact. Since Daydrink has only used glass jars for to-go and retail containers, we've been able to help reduce single-use plastic in our community. We've also turned the local conversation around sustainability towards single-use, and we've proven that you can build an incredible, thoughtful company here in the Midwest.”

He used a Kiva loan to purchase a fridge large enough to begin selling cold brew bottles at scale, source more green coffee for retail, upgrade equipment in-house, and invest in product marketing efforts.
In addition to the focus on ethical sourcing and high quality coffee, Daydrink prides itself on creating an inclusive community – in their words, “a community that is bigger than coffee, and one that encourages people to be themselves.”

Check out this video in which Ian himself makes an appearance, demonstrating sustainable production and consumption in action.

Gida in Kaua'i, Hawaii

A Kiva loan helped Gida's small regenerative poultry and egg farm provide food for the island of Kaua'i.

With a shared desire to create sustainable, high-quality food to feed an island that primarily depends on imported goods, Gida and her co-owners – who all bring years of experience in related fields, including organic and biodynamic farming – started Next Wave Island Poultry.

They strive to continue scaling their chicken and egg operation using the cleanest and most regenerative methods available, so that they may reach even more individuals on the island with pasture-raised, organically-managed poultry and eggs:

We are... thrilled to hear the feedback from people who are excited to have locally, organically raised meat and eggs again available to them.

“We are proud already of the innovations we've made to our pastured chicken tractors, our expansion of the egg-laying flock and the move towards expanding our pasture operations to include other small farms that would benefit from chickens on their fallow fields. We are also thrilled to hear the feedback from people who are excited to have locally, organically raised meat and eggs again available to them.”

Next Wave Island Poultry has an objective of streamlining the processing of their meat birds and chicken eggs to ensure that, as they grow, they are working as efficiently as possible while providing the safest and highest quality products to their customers. They used the Kiva loan to purchase key equipment, including a commercial egg-washer, a scalding tank for the cleanest and most efficient chicken processing, and a commercial refrigerator for the safe storage of meat and eggs.

Protecting food sources and agricultural livelihoods is foremost in the effort to build climate resilience around the world. Climate change will reduce agriculture yields by up to 30% by 2050 and increase food prices by 20% for billions of people, according to the UN’s committee on global climate change.

Gida’s contribution to sustainable food production systems on her island once again underscores how small businesses can make a big difference.

Invest in an eco-friendly business

These are just a few examples of Kiva borrowers who are doing what they can to mitigate climate change; hundreds of thousands of other Kiva borrowers are similarly using their business ventures as a way to positively impact the environment.

At Kiva, we envision a financially inclusive world where all people hold the power to improve their lives. Through our unique crowdfunding platform, anyone anywhere may contribute to a loan that resonates with them and support small-scale entrepreneurs around the world – including those who are either disproportionately impacted by climate change and those who are leading impactful initiatives in the fight against climate change.

By facilitating access to capital for these individuals, you, too, are making a difference in this fight.

Contribute to an eco-friendly loan today.

Tags:

Category of core post:

Kiva blog posts

Small business, big impact: Entrepreneurs use their Kiva U.S. loans to mitigate climate change

Kaylin Lang — Mon, 17 Apr 2023 22:02:57 +0000

At Kiva, we don’t wait for Earth Day to examine and address the undeniable truth; namely, that climate change is a defining issue of our time.

Read more: 5 Ways to Help the Earth

Rachel in Bayfield, Wisconsin

Rachel's Kiva loans helped expand offerings of eco-friendly wellness and goods for her community.

"We’ve been committed since the beginning to sourcing the most ethical and sustainable ingredients we can - even growing some ourselves! - and continue to improve our packaging and production & shipping methods to move toward zero waste.”

Ian in Iowa City, Iowa

Ian’s Kiva loan helped his sustainability-focused coffee shop reach new customers in the community.

Ian radiates pride as he describes how his sustainability-oriented coffee shop, Daydrink, also facilitates community and connection:

"I like the idea that you can build a sustainability-focused company in the middle of Iowa and still make a global impact."

Gida in Kaua'i, Hawaii

A Kiva loan helped Gida's small regenerative poultry and egg farm provide food for the island of Kaua'i.

We are... thrilled to hear the feedback from people who are excited to have locally, organically raised meat and eggs again available to them.

Invest in an eco-friendly business

Tags:

Category of core post:

Kiva blog posts

Small business, big impact: Entrepreneurs use their Kiva U.S. loans to mitigate climate change

Kaylin Lang — Mon, 17 Apr 2023 22:02:57 +0000

At Kiva, we don’t wait for Earth Day to examine and address the undeniable truth; namely, that climate change is a defining issue of our time.

Read more: 5 Ways to Help the Earth

Rachel in Bayfield, Wisconsin

Rachel's Kiva loans helped expand offerings of eco-friendly wellness and goods for her community.

"We’ve been committed since the beginning to sourcing the most ethical and sustainable ingredients we can - even growing some ourselves! - and continue to improve our packaging and production & shipping methods to move toward zero waste.”

Ian in Iowa City, Iowa

Ian’s Kiva loan helped his sustainability-focused coffee shop reach new customers in the community.

Ian radiates pride as he describes how his sustainability-oriented coffee shop, Daydrink, also facilitates community and connection:

"I like the idea that you can build a sustainability-focused company in the middle of Iowa and still make a global impact."

Gida in Kaua'i, Hawaii

A Kiva loan helped Gida's small regenerative poultry and egg farm provide food for the island of Kaua'i.

We are... thrilled to hear the feedback from people who are excited to have locally, organically raised meat and eggs again available to them.

Invest in an eco-friendly business

Tags:

Category of core post:

Kiva blog posts

Climate resilience: How to help smallholder farmers respond to climate change

Jessica Leigh Lebos — Fri, 14 Apr 2023 20:21:19 +0000

Mary received a loan, plus advice and insurance, through Apollo Agriculture, with the support of Kiva lenders

There’s no more time for debate: Climate change is here, and humanity must respond.

In order to help ourselves and others bear the brunt of change already happening and the challenges to come, we must increase our resilience to climate shocks.

Flooding, wildfires, drought, violent storms, and extreme heat are evidence of the climate crisis affecting every region of the planet and its people. We know that reducing greenhouse gas emissions can help slow its effects and prevent the most catastrophic scenarios.

But millions of people have already been displaced by climate change, many of them among the world’s most vulnerable populations. Action must be taken now to help them recover and prepare for more challenges to come.

What is climate resilience?

When it comes to confronting climate change and the difficult circumstances it presents, there are three types of responses that Kiva aims to support:

Mitigation includes actions that slow climate change. This primarily involves reducing greenhouse gas emissions to prevent the planet from warming further.
Adaptation means figuring out how to live with the effects of climate change. This is a long-term vision that means changing the way we grow food, build our homes, and modify our lives to better survive in a new environment.
Resilience is the ability to successfully cope with serious climate events like droughts and hurricanes. It includes preparation and anticipation of shocks in the short term and long term, and the capacity to recover quickly and efficiently.

In this article, we look at climate resilience and how it relates to communities already being impacted by climate change. While everyone will be affected by the shift, climate change causes a disproportionate amount of harm to those already at risk of political instability, food insecurity, lack of services, and other harsh conditions exacerbated by environmental disasters.

From Haiti to Afghanistan to Indonesia, people with the least amount of resources are bearing the brunt of the climate’s increasing instability. Any discussion about climate resilience must include discussion of how to help these underserved regions prepare for the future.

Read more: 5 Ways to Actively Help the Earth

What climate resilience looks like

As leaders and communities figure out how to adapt to climate change — by, for example, adjusting economic, ecological, and social systems to withstand climate-related risks for the foreseeable future — immediate action must also be taken to face the disasters already at the doorstep.

Facilitating climate resilience combines elements of mitigation and adaptation to create solutions that help people plan for the risks they are facing now. The UN Committee for Global Climate Action includes the following steps and interventions for governments, businesses, and communities to develop climate resilience:

Assess and monitor climate risk and vulnerability
Establish early warning systems and early action
Prepare contingency plans and emergency response
Employ nature-based solutions to reduce risks
Climate-proof infrastructure and services
Transfer risks through insurance and other social protection
Increase the volume, quality and access of public and private finance

Put into practice, these steps towards climate resilience can look like massive projects funded by governments, collective action by neighboring communities, or even helping to improve access to finance for individuals through microloans.

For example, in north Java, Indonesia, villagers and officials have collaborated on nature-based solutions that help protect the coast from tidal surges while increasing economic benefits with aquaculture. Over 70,000 people have increased their resilience to climate change through the project, with the additional mitigation benefit of storing more carbon by planting mangrove trees and expanding biodiversity in the surrounding ecosystem.

Sometimes climate resilience can look like starting from scratch: The Philippines has been one of the first countries to be affected by climate change, especially by the typhoons that pummel coastal communities as well as constant risks of earthquakes and flooding. In response to increasing hazards, in 2018 the government announced it was building a brand new, climate resilient city north of the current capital of Manila, made from sustainable materials and able to accommodate up to 1.2 million people.

Of course, most of the millions of people already impacted by climate change don’t have the option of starting over. They must build resilience through innovation, like the university student in Rwanda who identified a new way to bring fresh water to communities in an effort to eliminate water scarcity in Africa. In Uganda, bio-latrine technology is improving sanitation and infrastructure through better waste management and energy conservation. Climate resilient solutions are also underway in South America, with food production and sustainable agriculture initiatives.

Read more: It’s easy to take your share of climate action with Kiva

How to help farmers build climate resilience

Illiana's Kiva loan helped her purchase passion fruit seeds and improve her yields.

Protecting food sources and agricultural livelihoods is foremost in the effort to build climate resilience around the world. Climate change will reduce agriculture yields by up to 30% by 2050 and increase food prices by 20% for billions of people, according to the UN’s committee on global climate change.

One way to strengthen economic resilience to climate change is to make sure that small farmers have the support they need to handle floods, hurricanes, droughts, and other climate events. Microfinance has been shown to improve the livelihood of farmers, and it can provide much-needed capital to help implement solutions to make them more resilient to the effects of climate change. Some examples include:

Microloans and other financial services. Small loans help farmers adapt to unstable growing conditions by providing accessibility to things like drought-tolerant maize that increases crop yields in the face of unpredictable rainfall. Loans also offer ways for farmers to create new opportunities to diversify their livelihoods so they don’t have to depend on a single source of income.
Crop insurance. Some microfinance institutions (MFIs), like Apollo Agriculture based in Nairobi, Kenya, offer affordable insurance for loan clients so they can receive compensation if their fields flood or crops fail due to climate-related events.
Climate risk analysis. Other MFIs offer tools for farmers to assess how much the environment has changed and how climate change will affect livelihoods. This can help people decide when and which crops to plant or pivot towards a more sustainable direction.

Example of how microfinance institutions can help build climate resilience

In Bolivia, climate change is increasingly affecting the agriculture sector, which is the cornerstone of the economy. Higher temperatures and stronger precipitation events have become more common and have led to glacial melt, droughts, floods, forest fires, landslides, and many other events. This has damaged Bolivia's economy and created problems especially for the poor in both rural and urban areas.

Kiva Lending Partner Sembrar Sartawi works to support vulnerable smallholder farmers in Bolivia and contribute to climate-resilient economic growth. Most of its clients rely exclusively on the MFI to cover their funding needs, since they’re not serviced by the traditional banking sector.

Sembrar Sartawi provides microfinance loans to help farmers:

purchase environmentally-certified seeds,
invest in energy-efficient equipment,
or take out climate risk insurance.

Alongside loans, Sembrar Sartawi offers technical assistance to its clients at no extra charge. One example is providing support from professionals like veterinarians and agricultural engineers. The approach helps farmers increase their productivity, avoid high indebtedness and improve their incomes — in fact, one study showed that dairy farmer clients of Sembrar Sartawi have increased their profits by 50 percent.

You can invest in climate resilience too

More than a quarter of the world’s population — over two billion people — make their living growing crops, tending to livestock, or working in some form of agriculture. Supporting their resilience to climate change through microfinance not only helps stabilize their livelihoods, it protects the world’s food supply — just another way that the changing climate will eventually affect everyone on the planet.

You can help others build climate resilience by lending as little as $25 to a farmer or entrepreneur implementing sustainable solutions for the planet.

Make an eco-friendly loan today

Tags:

Category of core post:

Kiva blog posts

Climate resilience: How to help smallholder farmers respond to climate change

Jessica Leigh Lebos — Fri, 14 Apr 2023 20:21:19 +0000

Mary received a loan, plus advice and insurance, through Apollo Agriculture, with the support of Kiva lenders

What is climate resilience?

When it comes to confronting climate change and the difficult circumstances it presents, there are three types of responses that Kiva aims to support:

Mitigation includes actions that slow climate change. This primarily involves reducing greenhouse gas emissions to prevent the planet from warming further.
Adaptation means figuring out how to live with the effects of climate change. This is a long-term vision that means changing the way we grow food, build our homes, and modify our lives to better survive in a new environment.
Resilience is the ability to successfully cope with serious climate events like droughts and hurricanes. It includes preparation and anticipation of shocks in the short term and long term, and the capacity to recover quickly and efficiently.

What climate resilience looks like

Assess and monitor climate risk and vulnerability
Establish early warning systems and early action
Prepare contingency plans and emergency response
Employ nature-based solutions to reduce risks
Climate-proof infrastructure and services
Transfer risks through insurance and other social protection
Increase the volume, quality and access of public and private finance

How to help farmers build climate resilience

Illiana's Kiva loan helped her purchase passion fruit seeds and improve her yields.

Microloans and other financial services. Small loans help farmers adapt to unstable growing conditions by providing accessibility to things like drought-tolerant maize that increases crop yields in the face of unpredictable rainfall. Loans also offer ways for farmers to create new opportunities to diversify their livelihoods so they don’t have to depend on a single source of income.
Crop insurance. Some microfinance institutions (MFIs), like Apollo Agriculture based in Nairobi, Kenya, offer affordable insurance for loan clients so they can receive compensation if their fields flood or crops fail due to climate-related events.
Climate risk analysis. Other MFIs offer tools for farmers to assess how much the environment has changed and how climate change will affect livelihoods. This can help people decide when and which crops to plant or pivot towards a more sustainable direction.

Example of how microfinance institutions can help build climate resilience

purchase environmentally-certified seeds,
invest in energy-efficient equipment,
or take out climate risk insurance.

You can invest in climate resilience too

Tags:

Category of core post:

Kiva blog posts

More than a loan: what Kiva means to US borrowers

Kaylin Lang — Tue, 11 Apr 2023 16:54:32 +0000

Shawn used his Kiva loan to grow his business, TART! Bakery

The age-old aphorism “the customer is always right” rings true at Kiva US. Here, our “customers” are those we serve – the hardworking, talented entrepreneurs and small business owners who come to Kiva with dreams of accessing the capital that will empower them to grow their businesses. To date, we – together with more than 230,000 lenders worldwide – have facilitated the crowdfunding of more than $60M in loans to more than 8,000 individuals in the U.S.

Being able to provide vital capital to those who need it most, to those who are financially excluded, to those who may be considered “too risky”, credit-invisible, or otherwise unworthy in the eyes of traditional lenders; is an honor. And why stop at the 0%-interest, zero-fee, zero-collateral loan? At Kiva US, we’re constantly exploring how to add additional value to those we serve, how to improve and make more seamless the application and borrower experience, and how to complement the loan with wraparound services that further promote the success of small businesses. This can be through business support and financial planning advisory, mentorship and networking opportunities, marketing opportunities through Kiva, and more.

So if the customers are always right, how exactly are we at Kiva US ensuring that what we’re doing – changes we’re implementing, initiatives we’re launching, etc. – truly aligns with what our customers actually want?

We’re listening.

Throughout the entire Kiva borrower journey, from application to repayment; individuals are invited to share feedback via a brief NPS (Net Promoter Score) survey. On an ongoing basis, the team goes through the responses, coding the data to identify different themes and relationships between them. What’s going well? What’s not working? What are applicants saying about the application process – is it as simple and straightforward as it could be? What are borrowers saying about Kiva’s level of support – are we providing quality resources, tips and tricks, or could we provide additional assistance? What’s the most challenging part about the Kiva process? What are borrowers finding particularly frustrating? Particularly surprising? Particularly positive, conducive? Insights into these and other important questions can often be gleaned from the survey responses we receive. By analyzing these responses, we’re able to identify recurring themes and common sentiments and then act on these accordingly.

We’re sharing.

The gratitude-imbued responses we receive are too heartwarming and inspiring not to share. Many allude to the community-backed nature of the Kiva loan, underscoring appreciation for lenders. Some mention how their crowdfunding campaign and exposure validates them, encourages them, and bolsters their brand visibility; referencing not only the financial support but also the moral support they received. Some express their intent to spread the word about Kiva to others whom they believe could benefit. Others emphasize the expediency of the Kiva process itself. Others highlight that their Kiva loan was indeed a lifeline for their small business during the midst of the pandemic.

Still others focus on the unique and unparalleled 0% interest of the Kiva loan – after all, we know that only about 1 in every 4 Kiva US borrowers believes they could have found a good alternative to the Kiva loan. (See this article for more insights acquired about Kiva borrowers via the Kiva US program’s first-ever independent impact evaluation study conducted in 2022).

Below are some key themes that emerged:

The Kiva team’s support

“Customer service was prompt, information in the packets received in email were thorough. Very user friendly platform making it extremely simple for borrowers.”

“Every question I had was answered and when I didn't understand something, time would be taken so I was clear on all steps of the process. When I was nervous my support person at Kiva calmed me and just explained the process and gave me the tools I needed.”

“The process to fund my Kiva loan was easy, quick, and oh sooo sweet. The staff at Kiva was very helpful in guiding me through the process. The organization is a great resource for entrepreneurs who won't typically qualify for traditional loans. Kiva has definitely given me the opportunity to advance my business to the next level.”

The intentionality involved in the Kiva process

Lyla used her loan to start a glass etching business in Pittsburgh

“The set up of Kiva provides such an opportunity to support new business owners, help us feel empowered, and provides the type of encouragement that is often so badly needed in the beginning stages. Kiva is straight forward, clear, easy to navigate.”

“I found the process helpful for reviewing my vision for my new business. The 0% financing eases the sense of repayment. What a great resource for those wanting to start a business or those who may need financing to expand or improve their existing business.”

“As an entrepreneur it made me VERY intentional about planning/preparing to ask for financial support in my endeavors. But in addition to this, it also made me VERY clear about the plan that I’m putting in place in how I’m using these funds as a seed to grow my business.”

The power of community-backed capital

“There is companionship and guidance through the whole process. It's familiar, structured but most of all filled with care and potential. The access to social-financial capital – it’s like a globe family of caring people that microlend and validate your project.”

“This experience has been great. From start to finish everything went smoothly. This was my first Kiva loan so I didn't know what to expect, but the resources Kiva provided really helped my campaign. I used the [fundraising] templates, which saved me a lot of time. Being able to tap into the Kiva network of lenders has been great as well and helped a great deal in me reaching my funding goal.”

“I have tried all the traditional paths for small business funding. Each one reached a dead-end for me. I have followers, customers and partners who constantly try to support me. Kiva gave them a platform to come together and support me in a way that I truly needed. Crowd-sourcing is an amazing concept and something I am working to emulate in my business. Just as Kiva brought me this opportunity, I will work to bring others such an opportunity.”

Loans that change lives

“As a startup small business, funding is extremely hard to come by. You have to have excellent credit or already have high streams of revenue coming in. I have neither, and Kiva helped me start my business! I was fully funded 2 days before my campaign ended and paid out 5 days later! I have already placed my equipment orders so that my business can start seeing revenue as soon as next week. Within 45 days my life has just changed forever and I am extremely grateful!”

“I am extremely grateful to Kiva for this opportunity to grow my business without the worry of paying this extremely expensive interest. The process was exciting, too. I was glued to my app, watching generous people lend to me. I can’t wait to finish paying them back and show them that I am so grateful for them trusting me. Words can’t express how grateful and uplifting this makes me feel.”

Lend to a U.S. borrower here

We’re acting.

A Kiva loan allowed Cassandra to grow her clothesmaking business

Of course, we strongly believe in the power of loans to change lives and are passionate about the work that we do every day that furthers our mission to increase financial access to underserved communities in the U.S. However, if we only focused on such uplifting messages and disregarded the constructive feedback that we receive from some applicants and borrowers alike, we’d be exhibiting confirmation bias and consequently missing out on invaluable opportunities to improve our product and program.

For that reason, we ensure to address concerns that inevitably arise in some of these responses. Some applicants believe their loan applications were unfairly turned down – we revisit their application, ensure the turndown decision was objective, and also make sure that we are as clear as possible when it comes to the turndown reason. Other borrowers may express frustration about not having additional guidance when it comes to managing their loan. Over the past year, we’ve significantly grown our business support offerings, and, thanks to collaboration with partners such as Start Small Think Big who are equally passionate about advancing equity and inclusion in entrepreneurship, we’ve been able to connect more of our borrowers with free legal services, marketing support, financial management consulting, and more.

And other borrowers have expressed a desire to be able to build their business credit through Kiva. After all, at Kiva we pride ourselves on being the first rung on the capital access ladder; but how can we make it even easier for those we serve to ascend the capital access ladder post-Kiva, i.e., access more traditional bank loans and/or other types of external financing?
Stay tuned for an upcoming post on a new partnership we recently established that allows borrowers to build their business credit via Kiva!

We’re giving thanks.

Not only for the enthusiastic, appreciative, touching responses filled with #Kivalove; not only for the responses which provide actionable feedback and which open our eyes to potential process improvement ideas; but also for the opportunity to do what we do on a daily basis. Here at Kiva US, we get to serve a vast and inspiring entrepreneurial community nationwide. We get to partner with foundations, banks, community development financial institutions, nonprofits, city governments, accelerators, Small Business Development Centers, technical assistance providers, and others (read more about our Kiva US Hub partners here) who fully believe in and rally around our mission.

We get to play a growing role in increasing financial inclusion in this country, so it’s our turn now to say: “Thank you.”

And we’re growing!

Small business owners and entrepreneurs interested in applying for a Kiva loan: apply today. Organizations interested in partnering with Kiva US: reach out to us today here.

Tags:

Category of core post:

Kiva blog posts

More than a loan: what Kiva means to US borrowers

Kaylin Lang — Tue, 11 Apr 2023 16:54:32 +0000

Shawn used his Kiva loan to grow his business, TART! Bakery

We’re listening.

We’re sharing.

The Kiva team’s support

“Customer service was prompt, information in the packets received in email were thorough. Very user friendly platform making it extremely simple for borrowers.”

The intentionality involved in the Kiva process

Lyla used her loan to start a glass etching business in Pittsburgh

“The set up of Kiva provides such an opportunity to support new business owners, help us feel empowered, and provides the type of encouragement that is often so badly needed in the beginning stages. Kiva is straight forward, clear, easy to navigate.”

“There is companionship and guidance through the whole process. It's familiar, structured but most of all filled with care and potential. The access to social-financial capital – it’s like a globe family of caring people that microlend and validate your project.”

Loans that change lives

“As a startup small business, funding is extremely hard to come by. You have to have excellent credit or already have high streams of revenue coming in. I have neither, and Kiva helped me start my business! I was fully funded 2 days before my campaign ended and paid out 5 days later! I have already placed my equipment orders so that my business can start seeing revenue as soon as next week. Within 45 days my life has just changed forever and I am extremely grateful!”

Lend to a U.S. borrower here

We’re acting.

A Kiva loan allowed Cassandra to grow her clothesmaking business

We’re giving thanks.

And we’re growing!

Small business owners and entrepreneurs interested in applying for a Kiva loan: apply today. Organizations interested in partnering with Kiva US: reach out to us today here.

Tags:

Category of core post:

Kiva blog posts

More than a loan: what Kiva means to US borrowers

Kaylin Lang — Tue, 11 Apr 2023 16:54:32 +0000

Shawn used his Kiva loan to grow his business, TART! Bakery

We’re listening.

We’re sharing.

The Kiva team’s support

“Customer service was prompt, information in the packets received in email were thorough. Very user friendly platform making it extremely simple for borrowers.”

The intentionality involved in the Kiva process

Lyla used her loan to start a glass etching business in Pittsburgh

“The set up of Kiva provides such an opportunity to support new business owners, help us feel empowered, and provides the type of encouragement that is often so badly needed in the beginning stages. Kiva is straight forward, clear, easy to navigate.”

“There is companionship and guidance through the whole process. It's familiar, structured but most of all filled with care and potential. The access to social-financial capital – it’s like a globe family of caring people that microlend and validate your project.”

Loans that change lives

“As a startup small business, funding is extremely hard to come by. You have to have excellent credit or already have high streams of revenue coming in. I have neither, and Kiva helped me start my business! I was fully funded 2 days before my campaign ended and paid out 5 days later! I have already placed my equipment orders so that my business can start seeing revenue as soon as next week. Within 45 days my life has just changed forever and I am extremely grateful!”

Lend to a U.S. borrower here

We’re acting.

A Kiva loan allowed Cassandra to grow her clothesmaking business

We’re giving thanks.

And we’re growing!

Small business owners and entrepreneurs interested in applying for a Kiva loan: apply today. Organizations interested in partnering with Kiva US: reach out to us today here.

Tags:

Category of core post:

Kiva blog posts

Celebrating Kiva's review and translation volunteers

Apryl Gibson — Tue, 28 Mar 2023 23:06:03 +0000

At any given moment, Kiva’s website hosts thousands of borrower profiles and loan requests from all corners of the globe. As a result, many of these profiles require review as well as translation or editing before being made visible to the public. This is where the Review and Translation Program (RTP) steps in.

RTP comprises hundreds of volunteers who review, translate, and edit loans daily to see them fundraise on the Kiva site. These individuals typically review about 16,000+ loans per month. Just last year, they contributed to over $143 million in funded loans.

This month, we want to spotlight three individual volunteers: Katell, Anita, and Liliana. Kiva is incredibly grateful for these individuals who dedicate their time to empowering borrowers and creating a more financially-inclusive world. Kiva wouldn’t have the same ability to support borrowers without their contributions, as well as the efforts of all RTP volunteers.

Katell Maguet, Volunteer of the Month, January 2023

“For me, it’s a way to give back that doesn’t cost anything but just a bit of my time and that is positively impacting others.”

Location: Netherlands
Language: French
Team: Qui Va Bien
Time with Kiva: 2+ years
Outstanding contributions to Kiva: Since she began volunteering in 2020, Katell has reviewed over 228,000 words!

Anita Oppong Aboagye, Volunteer of the Month, February 2023

“Kiva gives me the opportunity to touch lives by editing, and that I don’t take for granted.”

Location: Columbus, Ohio
Language: English
Team: Kivaliers
Time with Kiva: 3+ years
Outstanding contributions to Kiva: Since she began volunteering in 2019, Anita has reviewed over 140,000 words!

Liliana Silva, Volunteer of the Month, March 2023

“Before finding Kiva, I wished to support [Latin America] in some way, but it being so far away, I couldn’t find any opportunities to do that, so it’s been really nice to have this channel to be able to reach and support those communities.”

Location: Helsinki, Finland
Language: Spanish
Team: Saliendo Adelante
Time with Kiva: 7+ years
Outstanding contributions to Kiva: Since she began volunteering in 2016, Liliana has translated over 295,000 words!

Want to be part of this amazing community of volunteers? Join us here.

Tags:

Category of core post:

Kiva blog posts

Celebrating Kiva's review and translation volunteers

Apryl Gibson — Tue, 28 Mar 2023 23:06:03 +0000

Katell Maguet, Volunteer of the Month, January 2023

“For me, it’s a way to give back that doesn’t cost anything but just a bit of my time and that is positively impacting others.”

Location: Netherlands
Language: French
Team: Qui Va Bien
Time with Kiva: 2+ years
Outstanding contributions to Kiva: Since she began volunteering in 2020, Katell has reviewed over 228,000 words!

Anita Oppong Aboagye, Volunteer of the Month, February 2023

“Kiva gives me the opportunity to touch lives by editing, and that I don’t take for granted.”

Location: Columbus, Ohio
Language: English
Team: Kivaliers
Time with Kiva: 3+ years
Outstanding contributions to Kiva: Since she began volunteering in 2019, Anita has reviewed over 140,000 words!

Liliana Silva, Volunteer of the Month, March 2023

“Before finding Kiva, I wished to support [Latin America] in some way, but it being so far away, I couldn’t find any opportunities to do that, so it’s been really nice to have this channel to be able to reach and support those communities.”

Location: Helsinki, Finland
Language: Spanish
Team: Saliendo Adelante
Time with Kiva: 7+ years
Outstanding contributions to Kiva: Since she began volunteering in 2016, Liliana has translated over 295,000 words!

Want to be part of this amazing community of volunteers? Join us here.

Tags:

Category of core post:

Kiva blog posts

Celebrating Kiva's review and translation volunteers

Apryl Gibson — Tue, 28 Mar 2023 23:06:03 +0000

Katell Maguet, Volunteer of the Month, January 2023

“For me, it’s a way to give back that doesn’t cost anything but just a bit of my time and that is positively impacting others.”

Location: Netherlands
Language: French
Team: Qui Va Bien
Time with Kiva: 2+ years
Outstanding contributions to Kiva: Since she began volunteering in 2020, Katell has reviewed over 228,000 words!

Anita Oppong Aboagye, Volunteer of the Month, February 2023

“Kiva gives me the opportunity to touch lives by editing, and that I don’t take for granted.”

Location: Columbus, Ohio
Language: English
Team: Kivaliers
Time with Kiva: 3+ years
Outstanding contributions to Kiva: Since she began volunteering in 2019, Anita has reviewed over 140,000 words!

Liliana Silva, Volunteer of the Month, March 2023

“Before finding Kiva, I wished to support [Latin America] in some way, but it being so far away, I couldn’t find any opportunities to do that, so it’s been really nice to have this channel to be able to reach and support those communities.”

Location: Helsinki, Finland
Language: Spanish
Team: Saliendo Adelante
Time with Kiva: 7+ years
Outstanding contributions to Kiva: Since she began volunteering in 2016, Liliana has translated over 295,000 words!

Want to be part of this amazing community of volunteers? Join us here.

Tags:

Category of core post:

Kiva blog posts

Kiva US 2022 highlights: Advancing Kiva’s mission and improving the US borrower experience

Rachel Lijoi — Tue, 14 Mar 2023 19:23:13 +0000

Lola and Ayla's Kiva loan of $10,000 helped them expand their healthy product line at Umi Organic.

Kiva’s mission is to open financial opportunity for all — especially those in underserved communities. At Kiva US, we provide small business owners with micro-loans at 0% interest and with zero fees. We’re proud to celebrate the work we did toward furthering our mission in 2022 with the support, passion, and shared commitment to financial inclusion from our dedicated partners and lenders. Here are some of the things we achieved.

1. More Kiva US loans went to systemically marginalized groups

In 2022, Kiva US strengthened our outreach to business owners in marginalized communities.

Of our Kiva US borrowers in 2022:

71% were woman-owned (vs 65% all-time)
49% were Black-owned (vs. 36% all-time)
18% were immigrant-owned (vs. 15% all-time)
2% were refugee-owned (vs. 1% all-time)

The COVID-19 pandemic sparked an increase in research on minority-owned businesses and the difficulties they have when it comes to business success and accessing finance. A study from the Brookings Institution found that Hispanic and Black-identifying individuals had the lowest credit scores out of the studied ethnicities. Credit scores are critical for obtaining a loan from traditional finance institutions.

The same study found that a larger percentage of Black and Hispanic individuals tend to be underbanked or unbanked in comparison to white individuals. And according to the National Inclusive Metro Recovery Playbook, beyond financial terms such as credit scores, “Structural barriers in the economy result in deep racial inequalities in rates of business ownership.”

In 2022, 79% of Kiva US loans went to BIPOC borrowers. In our pursuit to rethink creditworthiness, Kiva serves as an opportunity for marginalized groups to gain access to capital and fulfill their dream of owning or growing their business. Kiva’s social underwriting process focuses on “character, not credit score” — granting borrowers the ability to prove their creditworthiness in a private fundraising stage, where family, friends, and their local network can be the first contributors to their loan. The private fundraising stage is step one out of two for the funding stage and greatly helps our borrowers in achieving their goals.

Beyond business ownership and success, Kiva’s work with systemically marginalized communities also strengthens local communities. BIPOC-owned businesses are more likely to serve their local markets than average U.S. businesses, and black-owned businesses hire black employees for two out of every three jobs.

2. Our Hub and Trustee partnerships helped us reach more marginalized borrowers

At Kiva, we have two partnership models which strengthen our scope and scale when it comes to identifying and supporting small business owners who could benefit from Kiva loans. Through these partnerships we have been able to increase the number of loans funded to marginalized communities. Kiva Hubs are a partnership model in which a local organization within a given region serves a larger population through creating a Kiva borrower pipeline. Through this pipeline, Hubs connect their clients (e.g., small business owners and entrepreneurs in their communities) to Kiva and our loan product. In 2022, 83% of Hub loans went to BIPOC borrowers, and 56% of Hub loans went to BIPOC women.

Trustees are organizations that, like Hub organizations, are invested in helping small businesses thrive. Trustees, through working with their own clients, can suggest a Kiva loan to a small business owner whom they deem prepared, and may “endorse” that loan application as part of our social underwriting process. Trustees can strengthen both an individual’s application and Kiva crowdfunding campaign through this element of community-backed credibility.

One Trustee-backed borrower, Jan, is a Filipina chef who was named “Best Chef” by South Sound Magazine. Jan received a $15,000 Kiva loan endorsed by Trustee Tacoma-Pierce County Chamber. Her Kiva loan was used to replenish the equipment for her business to help her expand to more markets.

Jan's Kiva loan helped her expand her Filipinx food business to more markets.

Jan discussed the impact of the Kiva loan on her community. “By growing, we can continue to highlight Filipinx cuisine and bring joy and connection through food,” she says. Jan says her Kiva loan impacted the food landscape of her town, “allowing Filipinx food to have a spotlight in Tacoma, WA at the same time providing more diverse dining options.”

“I want to continue to demonstrate how a Filipina woman can thrive in this food business and inspire people to follow their dreams, even when there isn't as much representation,” Jan says. “Furthermore how owning a small business can empower one by celebrating culture, creating a welcoming work environment, and building a community they desire.”

3. Borrowers were able to climb the capital ladder

An independent evaluation of the impact of the Kiva US program conducted in 2022 quantified the struggles our borrowers face before accessing a Kiva loan.

73% of our borrowers have never applied for a business loan.
36% of our borrowers have no credit score or a credit score less than 600.
53% do not have a credit history.
76% could not find a better alternative to the Kiva loan.

These statistics show that Kiva is able to help those who wouldn’t otherwise be able to access finance. On top of this, once they have repaid their Kiva loan, they have more of an opportunity to access more funds from other providers — 52% of borrowers secured additional financing following their Kiva loan.

4. We launched business credit reporting to expand opportunity for borrowers

On top of expanding opportunity through granting loans to otherwise financially excluded business owners, Kiva launched a new program to help more borrowers “climb the capital ladder” than before. Business credit reporting grants borrowers the ability to build business credit through their loan. Kiva will be working with Experian and Dun & Bradstreet for reporting and the Credit Bureau Alliance for processing and updating. Borrowers who choose to opt-in and utilize the reporting will be able to reap the benefits of building business credit, giving them more opportunity to access finance from other institutions.

5. Kiva improved inclusivity and representation for LGBTQ+ and non-binary borrowers

At Kiva, diversity, equity, belonging and inclusion are some of our core values, and we are thrilled to share a new way in which we have been able to highlight this in our work. In 2022, Kiva US created a new category on site for LGBTQ-owned businesses. We also added the option for Kiva borrowers to select a non-binary gender when applying for a loan. We are excited that through these changes, lenders will be able to find loans that support LGBTQ and non-binary community members.

6. We created a Technical Assistance Program to help borrowers succeed in their businesses

Our 2022 Technical Assistance program, generously funded and made possible by our partners at Wells Fargo, was developed with the goal of equipping borrowers not working with Hubs/Trustees with financial management best practices. Kiva US connected borrowers with Wave Accounting at the start of their Kiva journey and partnered with Start Small Think Big to provide borrowers with one-on-one business and financial consulting. By equipping borrowers with access to technical assistance, we hope to increase their chances of succeeding in their businesses.

A look at 2023

For 2023 we are excited to continue focusing on marginalized communities by growing our network of Hubs, Trustees, and other strategic partners. Our partners help extend our work and amplify our impact through their dedication to small business development within their communities. The immense scale of Kiva’s impact, after all, is thanks to the collaboration and commitment to increasing financial inclusion shared by a community of partners, lenders, and borrowers.

If you are interested in applying for a Kiva Loan, please visit this link. Or, lend to a Kiva US borrower here.

Tags:

Category of core post:

Kiva blog posts

Kiva US 2022 highlights: Advancing Kiva’s mission and improving the US borrower experience

Rachel Lijoi — Tue, 14 Mar 2023 19:23:13 +0000

Lola and Ayla's Kiva loan of $10,000 helped them expand their healthy product line at Umi Organic.

1. More Kiva US loans went to systemically marginalized groups

In 2022, Kiva US strengthened our outreach to business owners in marginalized communities.

Of our Kiva US borrowers in 2022:

71% were woman-owned (vs 65% all-time)
49% were Black-owned (vs. 36% all-time)
18% were immigrant-owned (vs. 15% all-time)
2% were refugee-owned (vs. 1% all-time)

2. Our Hub and Trustee partnerships helped us reach more marginalized borrowers

Jan's Kiva loan helped her expand her Filipinx food business to more markets.

3. Borrowers were able to climb the capital ladder

An independent evaluation of the impact of the Kiva US program conducted in 2022 quantified the struggles our borrowers face before accessing a Kiva loan.

73% of our borrowers have never applied for a business loan.
36% of our borrowers have no credit score or a credit score less than 600.
53% do not have a credit history.
76% could not find a better alternative to the Kiva loan.

4. We launched business credit reporting to expand opportunity for borrowers

5. Kiva improved inclusivity and representation for LGBTQ+ and non-binary borrowers

6. We created a Technical Assistance Program to help borrowers succeed in their businesses

A look at 2023

Tags:

Category of core post:

Kiva blog posts

Kiva forgives loans due to severe financial crisis in Lebanon

Lev Plaves — Mon, 13 Mar 2023 17:24:45 +0000

"Having this new equipment and products through the Kiva loan has attracted more customers to the shop", says Kiva borrower Achraf in Lebanon.

Today, Kiva executed our largest writeoff to date. We forgave $2,001,388 in loans from our lending partner Al Majmoua in Lebanon, a country that has been facing an unprecedented economic and political crisis since 2019. We first partnered with Al Majmoua, a nonprofit microfinance institution, in 2007 and together have facilitated over $25M in loans thanks to the support of over 240,000 Kiva lenders.

I myself have had the pleasure of spending significant time with Al Majmoua over the years, including conducting full social performance evaluations, which allowed me to meet many different members of staff, as well as borrowers.

I have always considered Al Majmoua one of Kiva’s best partners: the organization was in a strong financial position and consistently made significant investments in maximizing impact. They have always shown a commitment to reaching the most underserved, including refugees who don’t have full legal or economic rights in Lebanon. Kiva has been one of many reputable international partners for Al Majmoua over the years and Al Majmoua has long been well regarded in the microfinance sector globally.

The crisis in Lebanon, which began in 2019, has been catastrophic on numerous levels. Following the collapse of the Lebanese government and exacerbated by the Covid-19 pandemic, Lebanon plunged into economic turmoil. The World Bank has called it one of the most severe economic and financial crises the world has seen since 1850, impacting the lives of millions across the country.

The massive explosion that rocked Beirut’s port in August of 2020 devastated the country further, killing and injuring thousands and leading to billions of dollars in damage. Basic services largely no longer exist in the country. Power outages are the norm. Medicine, gas, and other critical imported goods are often in short supply. Inflation across the country soared.

A currency crisis has been one of many consequences of these events, as the Lebanese Pound (LBP), which had been pegged to the US Dollar for 25 years, began to lose value against the dollar. This hit both Al Majmoua and their borrowers greatly, impacting the institution's ability to operate and their borrowers’ ability to repay their loans. The devaluation of the LBP grew worse and worse — it is now worth just one tenth of its previous value — and US Dollars became hard to come by. According to UN estimates, 80% of the population now lives in poverty.

Through all of these challenges, Al Majmoua has worked tirelessly to continue to serve their target population as best they can. Due to the currency crisis, the value of their borrowers’ loans, long stable against the US Dollar, dropped precipitously. Al Majmoua has been further hampered by capital controls which were put in place by Lebanese banks in 2019, preventing US Dollars from being sent out of the country. As such, even when Al Majmoua has attempted to repay the institution’s lenders, including the thousands of Kiva lenders who have supported the institution over the years, obtaining the US Dollars and the necessary permission to send those funds out of Lebanon has been impossible.

“We continue to be saddened by the disaster that we find ourselves in today and the effect it has had on our borrowers, organization, and Lebanon as a whole,” says Youssef Fawaz, Al Majmoua's Executive Director. “Kiva has long been one of our strongest partners and we are grateful to every single Kiva lender who has funded our borrowers.”

Over three years into the crisis, today Al Majmoua is doing all they can just to continue operating. Kiva has remained in constant contact with the organization throughout this period. It is clear to us that the ongoing challenges they face are through no fault of their own and are unlikely to change anytime soon. This reality is what led us to decide to forgive Al Majmoua’s debt to Kiva lenders.

“We are doing all we can to weather this storm so that we can continue to serve the communities who need our support,” says Youssef Fawaz, “and we greatly appreciate Kiva lenders’ understanding of the situation we find ourselves in.”

Every day, our lenders take on the risk that a borrower can’t repay his or her loan. This is part of what makes Kiva lenders’ capital so special, and so impact-friendly. While we never want to reach a situation where lender funds are lost, in this situation we firmly believe this is the right path forward during this crisis and in line with Kiva’s mission.

Tags:

Category of core post:

Kiva blog posts

Access to finance is critical to help women entrepreneurs around the world improve their earnings

Sophie McAulay — Wed, 08 Mar 2023 19:51:00 +0000

Sandra received a Kiva loan to grow her flower-selling business

Each International Women's Day, gender equality is a recurring theme across social media and global political dialogues. With all this focus, it can feel like we have come a long way toward reaching gender parity. And that's true — in some spaces.

In 2015, the United Nations adopted the Sustainable Development Goals, one of which was to achieve gender equality and women’s empowerment by 2030. Since then, we have seen tremendous progress in areas including women’s educational attainment and health and survival.

But according to the World Economic Forum’s Global Gender Gap report from 2022, we’re nowhere near reaching the timeline set out by the UN. While 2020’s report predicted we’d close the gender gap in less than 100 years, the most recent update showed the situation worsening, suggesting we now have 132 years before we’ll achieve that goal. In the area of economic participation and opportunity, the forecast is even longer, with 151 years before gender parity can be achieved — meaning it's well out of reach in our lifetimes, and even the lifetimes of the next generation.

Global gender parity in labor-force participation has been slowly declining since 2009, and the trend was exacerbated in 2020, with the COVID-19 pandemic reversing prior progress. According to the World Bank, the current global labor force participation rate for women is just over 50%, compared to 80% for men.

In the last year, unemployment rates have increased and have remained consistently higher for women. And if the current cost-of-living crisis continues to grow, it’s likely to impact women more severely than men, as women continue to earn and accumulate wealth at lower levels.

Women also face the problem of insufficient access to finance, which contributes to their lack of economic opportunity. Over 740 million women remain unbanked, and there are 72 countries where women are barred from opening bank accounts or obtaining credit.

Read more: Why gender equality is so important

Solutions toward equitable financial access

Kiva and our global ecosystem of Lending Partners seek to address this gap; that’s why 80% of our loans go to women. Since 2005, we have helped 1.8 million women take out $1.4 billion in loans, with support from over 2.1 million lenders.

Loans help to address the barriers women face in accessing finance, but their impact goes beyond the amount of money lent. According to 60 Decibels’ Microfinance Index, in which 14 Kiva Lending Partners took part, 73% of microfinance borrowers report experiencing increased household income. But even more — 88% — agree that their quality of life has improved, with 34% saying that their quality of life has “very much improved.”

But women continue to face systemic financial challenges. Here are a few of them and what Kiva and our Lending Partners are doing to address them.

Microfinance fills gaps in funding for women-owned businesses

Almost everywhere, including in many wealthier countries, women are less likely to borrow capital to start, operate, or expand a farm or business.

This is because traditional methods of lending, which often require collateral or credit histories, are failing many women. 80% of women-owned businesses with credit needs are either unserved or underserved — equivalent to a $1.7 trillion financing gap. And the impact on women is disproportionate, with women-owned businesses making up 23% of micro, small and medium enterprises but accounting for 32% of the finance gap for these businesses.

Many financial service providers are wary of issuing loans to small businesses that they perceive as “risky,” leaving women-run businesses, which tend to be smaller than those owned by men, with few options.

Microfinance institutions (MFIs), which make up the majority of Kiva’s Lending Partners, seek to address this need. The Microfinance Index found that over half of borrowers are getting access to a loan for the first time, and this is especially true for women and lower-income clients. Globally, 62% of women report that they could not easily find a good alternative to their MFI, compared to 53% of men.

Despite barriers to access, women are more likely to repay loans

Although they find it more difficult to access capital, women are more likely to repay their loans. Kiva’s data shows that repayment rates are higher for women across all sectors. The Microfinance Index also found that more women than men describe their repayments as “not a problem” (73% vs. 67% of men).

The gender wage gap persists as women entrepreneurs are concentrated in lower-paid sectors

All around the world, women continue to experience a large earnings gap compared to men. While education and work experience have become much less important in explaining this gap over time, occupation and industry have become more important.

Gender stereotypes and barriers steer women away from occupations that have traditionally been dominated by men and push them toward care-focused work that is often regarded as “unskilled,” or “soft-skilled”, and is lower paid.

This gendered differentiation in work sectors is particularly relevant to the gender earnings gap when it comes to entrepreneurship. Women tend to start businesses in different industries than men, and the sectors dominated by women see less profits.

In many countries, women-owned businesses are concentrated in retail trade and services sectors (like health, education, and social services), which are characterized by lower investments and growth compared to manufacturing, construction and mining.

According to data from the World Bank, women who enter male-dominated sectors earn 66% higher profits than women who remain in women-concentrated sectors.

Men in sectors predominantly composed of men earn the most;
Women in women-concentrated sectors earn the least; and
Women in sectors largely consisting of men and men in sectors largely made up of women fall into the middle tier of earnings.

Kiva’s data on loan activities generally reflect this gendered segregation. Activities where there are significantly more loans to women than men include arts and crafts, sewing and textiles, while women are much less likely to take loans for traditionally male-dominated sectors like technology, repairs, carpentry and wholesale.

Lower earnings may be a reason why when women do take out loans, they are on average smaller than loans that men take out, across all sectors.

Despite being lower paid, many of the industries women work in remain essential for society, like adult and child care industries, as well as food. Of loans for women, almost a quarter were in the food sector, and 6 out of the 10 top activities related to food, suggesting women are important contributors to food security in their communities and beyond.

Lack of access to capital contributes to lower earnings due to reduced productivity

Sectors that are heavily dominated by men are also generally more capital-intensive, meaning they require large amounts of investment and equipment to get started. Businesses that require fewer capital inputs may not produce the same return to capital, which plays a part in undermining women’s earnings.

In agricultural entrepreneurship, gender differences in access to productive inputs, including land and credit, can lead to gaps in earnings due to lower productivity. Studies have found that when gender differences in agricultural productivity exist, they often disappear when access to these inputs are taken into account.

This is supported by Kiva data which shows that when we do provide access to capital, women tend to be successful — they are slightly more likely to repay agricultural loans than men (97.05% vs 95.87%).

Loans for ‘assets’ could help improve incomes and productivity

According to research by 60 Decibels on Kiva partner NWTF, asset-based loans — loans for capital inputs like machinery or equipment to start or grow a business — are associated with higher income change compared to loans that are used for working capital, such as buying more inventory or raw materials to sell. 21% of NWTF borrowers who took out asset-based loans report that their incomes have very much increased, compared to 15% for those that use their loan for working capital. More research is needed, but perhaps helping women to purchase large, expensive assets may be more productive in helping them to increase their income by a larger margin.

This was certainly the case for Margarida, a small-scale commercial farmer. Margarida received a loan through Kiva’s partnership with iDE Mozambique, which strives to support women farmers to start and scale their agricultural businesses.

Margarida is fundraising for her fourth Kiva loan to scale her agricultural business

With her first Kiva loan of $2,500, Margarida bought seven greenhouses that allowed her to produce good quality vegetables by reducing the effects of climate change on her crops. In order to increase productivity, she took out another Kiva loan to acquire a tractor, which allowed her to increase her volume of horticulture production and expand her production area. Her third loan was for a tractor that she uses on her farm and rents out to other small-scale farmers in the area. Margarida has faced many difficulties due to climate changes such as heavy rains, intense heat, strong winds, and cyclones, but she has always repaid her Kiva loans, even on time. Now, she is funding her fourth Kiva loan for $25,000 — 10 times the size of her original loan — highlighting how much she has been able to grow her business since she was given an equitable opportunity to access capital for the assets she needed to grow.

Read more: 27 actionable ways to improve gender equality

30% of Kiva loans go to women in traditionally male-dominated sectors, helping them move into higher paying industries

Providing access to capital and loans can help women to cross over into more profitable sectors traditionally dominated by men.

In developing countries, women who work in male-dominated industries are more likely to obtain group loans and loans from a bank to start a business, relative to men in the same sectors. The women who have found this type of success in male dominated industries are possibly a unique group who have been able to access loans to start and operate their business.

This highlights the importance of work Kiva and its partners are doing to reach women who are seeking loans in these industries. Of Kiva’s business loans to women entrepreneurs, 30% go to women in traditionally male-dominated sectors including agriculture, wholesale, transportation, manufacturing and construction.

Some of the highest repayment rates for business loans to women are in transportation, demonstrating that once women do have access to capital, they are able to succeed in the sector.

Going beyond loans

Beyond providing access to capital, many Kiva Lending Partners increase their impact by providing wraparound services that help their clients to succeed in their businesses. One example is MiCrédito, which provides small loans to help businesses in Nicaragua that otherwise cannot access affordable finance to grow and scale. MiCrédito works with businesses that are too large for microfinance institutions, but too small for traditional banks. When these businesses grow, they expand formal employment opportunities and strengthen communities.

Eva Margarita was able to utilize a loan to start a successful business in the transportation industry

Alongside loans, MiCrédito provides financial education to assist with the prosperity and growth of their client’s businesses. One of their clients, Eva Margarita, age 62, is an agricultural accounting technician who was able to utilize a loan from MiCrédito to start a successful business in the transportation industry. Eva wanted to open transport routes to rural areas, helping people to avoid walking long distances to take their products to market. A loan of $20,000, powered by 1,035 Kiva lenders, allowed her to buy a bus and offer a valuable service in the rural area. In the near future, she wants to acquire new vehicles to open other transportation routes and generate employment. Without access to this support, Eva would not have been able to crossover to the transport industry and improve her profit margins.

Microfinance helps address gender equity and financial inclusion

MFIs around the world are helping to address the gaps left by systemic inequalities for women, by opening up access to capital where it’s not readily available and providing additional services to help women improve their earnings. Kiva is proud to work with MFI lending partners around the world to help improve the quality of life of millions of women.

Lend to a woman today to invest in gender equality

Icon credits:
Mechanic by Adrien Coquet from Noun Project Baby by Icon Island from Noun Project Smartphone by Yazmin Alanis from Noun Project House by Mohamad Arif Prasetyo from Noun Project Pig by Andy Mc from Noun Project clothing by GreenHill from Noun Project Store by AomAm from Noun Project Milk by Wawan Hermawan from Noun Project Food by Pham Duy Phuong Hung from Noun Project Software by zahrotul fuadah from Noun Project Baby by Icon Island from Noun Project spool of thread by The Icon Z from Noun Project Sewing Machine by The Icon Z from Noun Project Fruit by Loritas Medina from Noun Project Price Tag by NAPISAH from Noun Project

Tags:

Category of core post:

Kiva blog posts

Access to finance is critical to help women entrepreneurs around the world improve their earnings

Sophie McAulay — Wed, 08 Mar 2023 19:51:00 +0000

Sandra received a Kiva loan to grow her flower-selling business

Solutions toward equitable financial access

Microfinance fills gaps in funding for women-owned businesses

Despite barriers to access, women are more likely to repay loans

The gender wage gap persists as women entrepreneurs are concentrated in lower-paid sectors

Men in sectors predominantly composed of men earn the most;
Women in women-concentrated sectors earn the least; and
Women in sectors largely consisting of men and men in sectors largely made up of women fall into the middle tier of earnings.

Lack of access to capital contributes to lower earnings due to reduced productivity

Loans for ‘assets’ could help improve incomes and productivity

Margarida is fundraising for her fourth Kiva loan to scale her agricultural business

30% of Kiva loans go to women in traditionally male-dominated sectors, helping them move into higher paying industries

Going beyond loans

Eva Margarita was able to utilize a loan to start a successful business in the transportation industry

Microfinance helps address gender equity and financial inclusion

Lend to a woman today to invest in gender equality

Tags:

Category of core post:

Kiva blog posts

Access to finance is critical to help women entrepreneurs around the world improve their earnings

Sophie McAulay — Wed, 08 Mar 2023 19:51:00 +0000

Sandra received a Kiva loan to grow her flower-selling business

Solutions toward equitable financial access

Microfinance fills gaps in funding for women-owned businesses

Despite barriers to access, women are more likely to repay loans

The gender wage gap persists as women entrepreneurs are concentrated in lower-paid sectors

Men in sectors predominantly composed of men earn the most;
Women in women-concentrated sectors earn the least; and
Women in sectors largely consisting of men and men in sectors largely made up of women fall into the middle tier of earnings.

Lack of access to capital contributes to lower earnings due to reduced productivity

Loans for ‘assets’ could help improve incomes and productivity

Margarida is fundraising for her fourth Kiva loan to scale her agricultural business

30% of Kiva loans go to women in traditionally male-dominated sectors, helping them move into higher paying industries

Going beyond loans

Eva Margarita was able to utilize a loan to start a successful business in the transportation industry

Microfinance helps address gender equity and financial inclusion

Lend to a woman today to invest in gender equality

Tags:

Category of core post:

Kiva blog posts