Kiva Zip is a non-profit Zero Interest loan program, funded entirely via online crowd-funding. Kiva Zip specifically targets financially-excluded small and/or new businesses that have difficulty securing traditional financing (usually too new, too small or too risky). This presentation - delivered at the 2013 Beginning Farmers Learning Network (Mar 8, 2013 - Albany NY) - describes some of the challenges for small and beginning farms to achieve a financially self-sustainable approach to farming, and also why zero-interest crowdfunded loans provide a viable and suitable means to grow their farms.

1. Supporting Beginning
Farmers with Zero
Interest Loans
Beginning Farmers Leaning Network (BFLN) March 8
1

2. First, a little about
980K starter loans, 67 countries
Crowdfunds $1mil in loans every 2.5 days
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3. On Average,
ALMOST HALF
of the small
businesses Kiva funds
are in agriculture +
food production

4. :What is it?
0% interest loan
Funded entirely via
online crowd-funding
4

5. :Who it’s for?
Targets financially-excluded
small and/or new
businesses that have difficulty
securing traditional financing
(usually too new, too small or too
risky)
5

6. In short.....
“we design loans for small
businesses other lenders cannot fund.”
6

7. 3 quick reasons why our
loans suit beginner farmers
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8. 1.“Beginning”
2.“Small”
3.“Strong social ties”
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9. 1) “Beginning”
• new, unproven businesses
• little or no track record
• Zip designed as the "first rung of the
credit ladder"
• suits those with short credit histories -
does not assess worthiness using FICO
scores but competence and character
instead
9

10. • Worked on farms but 1st-
time entrepreneur
• Bokashi aids “clean, non-
stinky composting” as a
compost accelerator and
soil supplement.
• Needed $5000 to make a
profitable batch of 1200lbs
• “With these purchases I
can immediately turn a
profit.This loan is the
BOKASHI EVOLUTION lifeline of Bokashi as I
Odorless compost accelerator, AZ have completely
exacerbated my own
funds.”

11. • Home based nursery selling
95 varieties of plants online
• Lost $5,000 in plants in 2012
because didn’t have proper
greenhouse & shading during
difficult weather
• Loan is to prevent plant loss
and scale business
• “By operating the business
right, I will be able to
increase sales and hire one
GAIL, THE POND PLANT GIRL full time and one part time
Home pond & artichoke farm. Visalia, CA employee; hank you for the
opportunity to reach my
dreams and goals.”

12. The Federal Reserve estimates
> 80% small businesses use credit
cards to fund some of their working
capital
12

13. 2) “Too Small”
• Beginner loans (Dairy cow or seeds or a
freezer @$2000)
• Often too small to be serviced profitably by
traditional lending model
• Small lenders is Kiva's specialty
• International loan size ave <$500
• USA Zip ave <$5000
• By using PayPal and partners (like you) in lieu
of physical branch infrastructure, we can
serve new and very small loans at zero cost
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14. • Expanded garden -
started keeping bees,
growing organic herbs
for restaurants in 2012
• Just 11 jars of honey in
2012
• “Need a little boost to
help me get my first big
season under way”
• $2000 for new hives
LITTLE SPARROW FARM and quality seeds
Organic Micro-farm. Ballston Spa, NY (without using credit
card debt)

15. 3) “Strong Social Ties”
• Kiva Zip qualifies borrowers not by Credit Score
• ...but by the willingness of established
community-based organizations to vouch
(“endorse”) borrowers
• Community Ties and Human Trust are what
count in the Kiva Zip model
• Farming by its very nature is invested in the land,
and rooted in the community - perfect for Zip
15

16. Examples of trustees now endorsing
Examples of trustees now endorsing
beginning farmers across the country
beginning farmers across the country
MAINE SHADYSIDE
ORGANIC CALIFORNIA CATAPULT
SEEDSPOT, NURSERY,
FARMERS FARMLINK PGH
AZ PA
Loyal to the Bokashi Fiesta Farm, BEEboy Honey, Churchview Healcrest
Left field farm,
Soil, Evolution, CA PA Farms, PA Urban Farm,
ME
AZ AZ PA

17. Trustees in NY endorsing small farms
Trustees in NY endorsing small farms
INSTITUTE FOR
GREENHORNS, REBECCA
VETERANS,
NY HOCKADAY, NY
SYRACUSE U
Apitronics Blue Floral Beauty
Mendocino
(mobile House Greenhouses Little Sparrow
Organics
arming apps) Farm Farm

18. 6 reasons why Kiva Zip can help you lower
barriers for Beginning Borrowers
Expand access to 0% interest loans
...To small and new farmers not otherwise qualified for
conventional loans
...All loans are crowdfunded online from our lending
community
We also lower cost of lending further by using digital
platforms (PayPal), no overheads = no fees or interest, only
pay back the principal
Which also directly connects farmers with an online “Social
Network” of emotionally invested lenders
These they can then turn into fans, customers and brand
advocates!

19. So yes, it’s a great vehicle.
But the real fuel is you.
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20. So yes, it’s a great vehicle.
But the real fuel is you.
In the Kiva Zip model of character-based lending, “Trustees” - organizations or
individuals that work closely with small entrepreneurs - are absolutely crucial.
Trustees are those entrusted to:-
Identify eligible and deserving borrowers for 0% interest loan
Trust = Character + Competence
Publicly endorse them on the Kiva Zip website
Support the borrower in their business (advice, mentorship, incubator space,
networking)
Trustees have no financial risk if a borrower they endorse does not
repay, but their reputation is tied to borrowers’ performance. 20

21. Trustees in NY endorsing small farms
Trustees in NY endorsing small farms
INSTITUTE FOR
GREENHORNS, REBECCA
VETERANS,
NY HOCKADAY, NY
SYRACUSE U
YOU
Apitronics Blue Floral Beauty A SMALL
Mendocino
(mobile House Greenhouses Little Sparrow FARMER
Organics
arming apps) Farm Farm YOU KNOW

22. YOU
2 easy ways you can
get involved
RIGHT NOW
➊
JOIN US AS A
KIVA ZIP GOOD FARMERS
➋
REFER TO KIVA
TRUSTEE IN NEED

23. Kiva Zip needs more trustees. Join us.
3 Things you can do right now to start helping farmers as a
trustee
1. Think of 1 deserving borrower you know right now who could use a
loan <$5000 - your pilot borrower
2. Think about why you TRUST in this farmer’s competence, and their
character, and whether he/she is someone you’d vouch for - Y/N?
• If Yes, email
SULIN LAU, Kiva Zip New York
Sulin.Lau@fellows.kiva.org
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24. If you are or know a borrower
who could use a Kiva Zip Loan
who could use a Kiva Zip Loan
Get in touch with me!
Rebecca Hockaday,
Kiva Zip Trustee @ Albany
rhocky@hotmail.com
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25. One final story.....

26. By working together,
we hope to have 100
of these stories this
time next year.
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27. Thank You!
SULIN LAU
“I know great
organizations”
Kiva Zip New York
Sulin.Lau@fellows.kiva.org
Rebecca Hockaday
“I know great
local farmers”
Trustee @ Albany
rhocky@hotmail.com

28. Appendix: back-up & reference slides
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29. What’s in it for trustees?
If you already work with financially excluded clients (unproven
Empower startups, or low credit score entrepreneurs)...
Clients Kiva Zip will give the clients you endorse access to 0% business
loans they would otherwise not qualify for
If you already do great work in your community that largely goes
Promote unrecognized or unpromoted...
what you do being a Kiva Zip trustee automatically allows you to promote
your work (in your own words) to >1 mil socially-conscious Kiva
lenders everywhere. Also participate in Kiva PR initiatives.
If your organization’s potential funders care about tangible
Increase impact (businesses helped, $$ generated, jobs created)...
Impact,
Kiva Zip helps you help more small businesses take off, faster.
Help Endorsing a deserving borrower online takes 15min. Reducing
Fundraise time and cost for raising capital means you can impact more.