1. KIVA in US agricultural businesses

2. SUCCESS THUS FAR Farmers fund well Best repayments rates of any industry within Kiva Zip Kentucky has one of the top repayment rates of any state on Kiva Zip

3. Kiva Started in 2005 as an international microfinance non-profit. Moved to domestic loans two years ago after persistent asks from our lender community, who mostly reside in the United States. Peer-to-peer lending

4. Kiva Zip

5. Small businesses create jobs in the United States 2 out of 3 small businesses hired just one additional employee 1 in 3 We could be at full employment if Every day small business loan applications are rejected by banks 8,000 Access to capital is consistently a constraint to growth reported by U.S. small businesses Top 3

7. How do borrowers get money traditionally?

8. Reinserting relationships into our financial system  People are underbanked, financial literacy may be low or complexity in finances can be intimidating  Damaged credit  Collateral. How do you get started when you have nothing?  Cashflow is king but pre-revenue start ups have a chicken and egg problem: How can you get started (and demonstrate a quality cash flow) without that initial injection of money? Reasons why businesses cannot access capital

9. What’s the vision? A hundred years ago, banking was all about human relationships. Now it is all about FICO scores, credit reports and balance sheets. Kiva Zip retains the power of modern technology and data… …But reinserts human relationships into today’s transactional financial systems. How do borrowers get money traditionally?

10. KIVA’S FINANCING Social Underwriting –Self-reported credit –No collateral Flexible Repayment Terms Social engagement with lenders No transportation requirements

11. Social Underwriting – Our Big Innovation Trustees Social underwriting entirely based on trustee endorsement Great start, limited growth Private Fundraising Period Second component of social underwriting Significant decrease in due diligence of loans Unlocking viral lender growth Make a Loan to Get a Loan Experimenting with new ways to increase the social underwriting components of the program Wisdom of the crowd We rely on Kiva Zip lenders for due diligence Expirations “weed out” “bad loans”

12. Top three ways to fund quickly 1.Be a farmer 2.Great photo 3.Use your network

15. What’s the vision? Social capital SupportersConnectionsCustomers Feleciai had over 500 lenders on her loan Many of them sent her messages of support She has increased her sales by being on Kiva Zip Kiva Community in Kentucky

16. AGRICULTURE AND FARMING

17. By Industry We <3 Food, Farm, and Artisan businesses.

18. Loan Amounts $5,000 loan maximum on any industry outside of farming $10,000 loan maximum for farmers, first time lenders

20. DIFFICULTY IN FINANCING AGRICULTURE Transaction costs are high –Population less dense –Transportation increases Repayment is dependent on external factors –Weather, drought –Seasonality Collateral

21. Loan Uses Pay for legal fees Purchase vehicles Hire staff and help Improve their technology Upgrade their websites Market and advertise Purchase inventory Invest in equipment Expand product lines

22. Kentucky Loans https://zip.kiva.org/loans

23. https://zip.kiva.org/loans/15762

24. Who is qualified? High quality is defined in three key areas: 1) Fundability The attractiveness of a borrower to lenders. The speed at which they fundraise. Food producers and farmers fundraise faster than any other industry. 2) Repayment Rate Their ability to repay their loans. 3) Social Impact

25. Process to borrow 1.Apply online 2.No formal paper work required, all self- reported numbers 3.Endorsement by Trustee 4.PFP (Private Fundraising Period) – 15 Days 5.Public fundraising on the site – 45 Days

26. Questions?