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The city of Rochester’s Kiva small-business loan program has facilitated more than $1.6 million in loans since its inception in 2016. The program, which marked its 10th anniversary this week, provides microloans to local entrepreneurs.
City officials say the Rochester Kiva program has established itself as a national leader in crowdfunded capital, ranking among the highest-performing U.S. Kiva cities in both community loan endorsements and total lending volume.
“Small businesses are the backbone of our economy—creating jobs, driving innovation, and improving neighborhoods and the families who live in them,” said Mayor Malik Evans at an event commemorating the anniversary. “When we invest in Rochester’s entrepreneurs, we invest in Rochester’s future.”
Kiva Rochester directly drives financial inclusion by prioritizing support for women- and minority-owned businesses and helping to build credit. In addition to strengthening the small-business economy, the program aims to build sustainable wealth in historically underserved communities by removing traditional financial barriers.
“Kiva Rochester does more than just level the playing field. It directly drives financial inclusion by prioritizing women and minority-owned businesses and removing traditional financial barriers like credit scores (and) collateral,” Evans said. “(Kiva) approaches lending from a character standpoint. It allows entrepreneurs to prove their creditworthiness with the help of family and friends, and they can support their business ideas to the point that they will invest in them and themselves.”
Andre Morrison is a two-time loan recipient for his companies Redd Horse Transportation, a non-emergency medical transport service, and Andre’s Barbershop, located on Portland Avenue, which recently hosted “Cuts for Peace.”
“We are a part of the community. We are a pillar of the community. And it feels good to be a part of the community, and we thank Kiva for helping us out to make that dream come true,” Morrison says.
For JaCorri Smith, Kiva helped her crowdfund $8,000 for her juice shop.
“Having a vision is one thing, but having the funding to build the business is a challenge that can become extremely discouraging,” Smith says. “With the help of Kiva Rochester, I was able to crowdfund $8,000 for my business that allowed me to purchase equipment, prepare my space, and I got a step closer to my grand opening. Today, Beautifully Nourished Juicery is open and I am forever grateful to my city. It showed me that this city believed in my dream just as much as I do.”
Other beneficiaries of Kiva loans present at the event included Stephanie Armstrong, CEO of Moxie Creative Studios; Crystal Chapman, founder of C&B Elegant Events; and Marquita Rugless, CEO of ROC Events.
Kiva, founded in 2005, is a global crowdfunded microlending platform through which individuals can lend as little as $25 to support entrepreneurs. Businesses can access zero-interest loans of $1,000 to $15,000 with no fees, no collateral, and no minimum credit score requirements.
The Kiva application process focuses on social capital rather than traditional credit checks. Borrowers first complete an application, then invite a small number of friends and family to make initial loan contributions to demonstrate creditworthiness, and finally enter a public crowdfunding phase in which millions of global Kiva lenders can support the project.
“All of you that have gotten Kiva loans, all of you that have contributed to Kiva, it’s up to us to be the ambassadors of that program—to tell someone that might be on the edge, thinking about how they’re going to do their next business, apply for a Kiva loan,” Evans said.
“I want to say in a year and a half or two, we’re going to get over that $2 million (mark),” he added, “and it’s going to be time for another party.”
David Wazana is a Rochester Beacon contributing writer and a member of the Oasis Project’s second cohort.
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