(http://www.kiva.org)
Kiva City Los Angeles (LA), an initiative that enables anyone with
access to the internet a chance to support small business owners,
local economies, and local jobs in Los Angeles launched today. The
initiative also aims to expand the awareness and availability of
microfinance opportunities among small business owners and aspiring
owners in the Greater Los Angeles Area. Kiva City LA is a
collaboration between the Mayor's Office of Small Business; VEDC
(Valley Economic Development Center), Kiva, and Visa Inc.
"Small businesses are the backbone of our local economy," said Mayor
Villaraigosa. "There is no shortage of passionate and successful small
business owners in Los Angeles who, collectively, have the power to
accelerate job growth and economic opportunity for all of us. We are
thrilled to partner with Kiva and VEDC to help Angelenos bridge the
lending gap and help small businesses thrive."
Small dollar loans, or "microloans," are essential to small businesses
for accelerating job growth and economic recovery in LA and across the
nation. According to the U.S. Small Business Administration (SBA),
small businesses create two out of every three new jobs, employ over
half of private sector employees, and produce over half of the nonfarm
GDP. In LA alone, there are 325,000 small businesses employing nearly
2 million people, making LA the nation's largest small business
community.
"When small businesses do well, local and national economies do well
-- local jobs are created and communities are strengthened," said
Roberto Barragan, President and CEO of VEDC. "The small business
owners and aspiring owners that we work with have all the elements of
success -- except access to capital and training to start or expand
their businesses. Over the past three years VEDC has lent $25.8
million to 480 small and micro businesses, supporting the creation of
1,082 new jobs and 240 new businesses. VEDC's partnership with Kiva
City LA and the Mayor's Office of Small Business will allow for the
expansion of our efforts in Los Angeles as we strive to support small
business and make economic dreams a reality."
Microloans can be difficult to find because according to the SBA, the
cost to banks for processing loans of $50,000 is nearly the same as
processing a $1 million loan.(1) Earlier this month Thomson
Reuters/PayNet released a report showing that lending to small
businesses fell for the fourth month in a row and is at the slowest
annual growth rate in two years.(2)
Kiva City LA aims to fill the lending gap for small businesses through
crowdfunding $1,000 to $10,000 loans. Lenders can visit
www.kiva.org/losangeles(http://www.kiva.org/losangeles) and browse
small business owners' profiles and stories and choose those they want
to support with a loan of $25 or more. Loans funded through Kiva have
a 98% repayment rate, so the money you lend is likely to come back to
you.
VEDC will use their extensive networks to identify qualified small
businesses in the LA area that would benefit from a loan and then post
their profiles on Kiva.org. Small businesses interested in beginning
the application process can visit VEDC's
www.microloan.org(http://www.microloan.org/). The Mayor's Office of
Small Business, through its BusinessSource Centers and counseling
services around the City, will also identify potential borrowers and
refer them to VEDC.
"A crowd of people lending to a business owner on Kiva.org gives each
of us a chance to support thriving local economies, communities and
jobs," said Premal Shah, President of Kiva. "If the money stored in
our wallets was given a new life for a short amount of time, as a loan
to a small business owner, each of us could help to shape the course
and success of the economy. A single loan, a single business or a
single job can change the trajectory of families, communities, and
cities."
"Visa has a long-standing commitment to small business and financial
inclusion. Kiva City LA brings those together by making it possible
for small business owners to start or grow a business when they might
not be able to otherwise," said Douglas Michelman, Global Head of
Corporate Relations for Visa Inc. "This can be the critical first step
for business owners to create jobs and realize long-term financial
success."
Kiva City LA joins Kiva Cities Detroit and New Orleans and is part of
the Kiva Visa partnership U.S. small businesses.
About Kiva City Kiva City LA is part of the broader Kiva City program
working to expand access to capital to small businesses in the U.S.
Thanks to Visa's strong interest in supporting small businesses, Kiva
has now launched Kiva City Detroit, Kiva City New Orleans, and now
Kiva City LA. Each Kiva City is a coalition of local leaders,
community organizations, and financial partners working together to
strengthen local economies, support small businesses, and expand
financial access to underserved populations.
About Valley Economic Development Center (VEDC) VEDC (Valley Economic
Development Center) is the largest non-profit small business lender in
metro Los Angeles and offers direct micro and small business loans as
well as SBA 7(a) and SBA 504 loans. VEDC has a $20 million loan
portfolio and almost $40 million under management and originates loans
totaling more than $35 million annually to businesses locally and
statewide. With seven locations throughout the Los Angeles area and
San Francisco, VEDC has supported the small business owner for 35
years with the goal of creating and sustaining jobs and businesses in
low to moderate income communities by providing high-quality economic
development services. For more information visit
www.vedc.org(http://www.vedc.org/).
About Kiva.org Kiva is a non-profit organization working to alleviate
poverty by connecting people around the world through microlending.
With as little as a $25 loan, anyone can help a borrower create new
opportunities for themselves and their family. Together with more than
750,000 Kiva lenders and a worldwide network of microfinance
institutions, Kiva has created economic opportunity for more than
800,000 borrowers. Since its inception in 2005, Kiva lenders have
funded more than $325 million in loans with a 98.9% repayment rate.
Visit www.kiva.org(http://www.kiva.org/) for more information.
About Visa Inc. Visa is a global payments technology company that
connects consumers, businesses, financial institutions and governments
in more than 200 countries and territories to fast, secure and
reliable digital currency. Underpinning digital currency is one of the
world's most advanced processing networks -- VisaNet -- that is
capable of handling more than 20,000 transaction messages a second,
with fraud protection for consumers and guaranteed payment for
merchants. Visa is not a bank, and does not issue cards, extend credit
or set rates and fees for consumers. Visa's innovations, however,
enable its financial institution customers to offer consumers more
choices: Pay now with debit, ahead of time with prepaid or later with
credit products. For more information, visit
www.corporate.visa.com(http://www.corporate.visa.com/).
About the Mayor's Office of Small Business The Mayor's Office of Small
Business is integral to Mayor Antonio Villaraigosa's economic
development goals of strengthening our communities while advancing Los
Angeles's position as a world-class hub of creative and innovative
business. The Office of Small Business is dedicated to connecting the
LA small business community with the resources and opportunities they
need to succeed. For more information visit
http://www.losangelesworks.org/smallBusinessServices/(http://www.losangelesworks.org/smallBusinessServices/).
(1) SBA.gov, "Priming the Lending Pump for Small Business: SLA 2.0"
(http://www.sba.gov/community/blogs/priming-lending-pump-small-business-sla-20(http://www.sba.gov/community/blogs/priming-lending-pump-small-business-sla-20))
(2) Thomson Reuters/PayNet Small Business Lending Index, April 2012
(http://www.reuters.com/article/2012/06/01/us-usa-economy-paynet-idUSBRE8500F620120601?type=smallBusinessNews(http://www.reuters.com/article/2012/06/01/us-usa-economy-paynet-idUSBRE8500F620120601?type=smallBusinessNews))
