Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.
 

August 6, 2020 - COVID-19 Update:

Kiva has been in contact with SPBD Solomon Islands to understand how we can best support their business and borrowers during the ever-evolving COVID-19 pandemic. We continue to prioritize the safety and well-being of all staff, borrowers and their families as this global pandemic continues.

While country-specific responses to the crisis vary, most governments have imposed curfews, travel restrictions, and nation-wide shutdowns. The Solomon Islands has imposed temporary moratoriums on loan payments, affecting not only microfinance, but the economy as a whole.

As a result, borrowers and SPBD Solomon Islands may experience difficulty making and collecting loan repayments due to the aforementioned restrictions or fallout effects of the virus. Over the coming months, it’s possible that lenders will see a delay in repayments and new loans posted by SPBD Solomon Islands. As an impact-first funder, Kiva is committed to serving our Lending Partners, as in past crises. We are sympathetic to temporary increases in repayment delays and delinquency in order to help Lending Partners and borrower communities recover. 

Kiva is working closely with SPBD Solomon Islands to support them and their borrowers through the COVID-19 crisis. SPBD Solomon Islands is sending regular updates to Kiva, and we'll update Partner Pages as we learn more. 

On behalf of Kiva and SPBD Solomon Islands, we’re grateful for your continued support through this difficult time.

Partner description:
South Pacific Business Development Solomon Islands (SPBD Solomon Islands) opened in 2012 and is part of a larger SPBD network offering microfinance services across the Pacific region. The Solomon Islands is one of the poorest countries in the South Pacific. One third of the population of Honiara, the capital city, lives below the poverty line. 

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Lending Partners. With Kiva's 0% capital, many of our Lending Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

Factors that drive up the costs that this partner organization charges its borrowers include:

• They operate in the Solomon Islands, which is classified as a fragile situation by the World Bank. This can greatly increase the cost of safely delivering financial services to borrowers. 
• They provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.
• They’re based in an area with a high cost of living and doing business. This is often due to the high demand and low supply of adequate housing and goods.
• They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
• They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.
• They operate in a region known to be at risk of natural disaster, which increases the cost of doing business.
• They operate in an area with a limited or poorly functioning banking system. This makes it difficult to access funding locally, and makes it more challenging to send and receive payments on loans from outside the country.