Addressing financial inclusion for marginalized communities in the United States

1 in 10 U.S. adults are unbanked & roughly  1 in 4 are underbanked.

Kiva’s mission to expand financial access isn’t limited to lower-income countries. There’s an enormous need throughout the United States for financial equity and inclusion in communities that have been historically and systemically marginalized.

What does systemically marginalized mean?

“Systemically marginalized” refers to groups and communities that experience discrimination and exclusion due to a system of oppression—meaning patterns of behavior and policies that perpetuate economic and political disadvantages.

Marginalized entrepreneurs face financial discrimination based on race, gender, sexual orientation, and myriad socioeconomic factors. In our effort to open financial opportunity to all, Kiva has invested in expanding financial access for those that have been most excluded, including members of the LGBTQ+ community, refugees and immigrants, women and gender nonconforming individuals, Black and African Americans, the Latinx community, Indigenous people, and People of Color.

Kiva U.S. rethinks how business owners qualify for and raise capital. Entrepreneurs can crowdfund microloans to fuel their business growth and develop a positive financial history for future expansion, plus gain access to vital resources and support.

What's different about Kiva U.S. loans?

Helping entrepreneurs succeed since 2011 230K+ Kiva U.S. lenders $60M+ in crowdfunded loans 8,000+ entrepreneurs supported

In 2022 alone, we disbursed $10.6M in loans to marginalized business owners.

What impact is Kiva U.S. having on entrepreneurs?

For us, the answer had to come from the source: the people and businesses that Kiva loans support. So we partnered with 60 Decibels, who interviewed both Kiva borrowers and non-borrowers to find out more about our impact on people’s lives. The verdict? Yes — Kiva is making a positive difference in a big way.

Making finance accessible

Everyone deserves the opportunity to pursue their dreams and improve their livelihoods. Yet, many banks are less likely to approve loans to minorities, women, and BIPOC business owners. And without access to a bank account, collateral, or high credit score, they may not meet the requirements of traditional financial institutions. That’s where Kiva comes in.

Kiva U.S. fills this gap in the financial market to give entrepreneurs fair and equitable access to the financial resources they need to thrive.

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"[Kiva’s] criteria about loaning money is specifically geared toward people like myself. People who are financially struggling. They do not discriminate by creed, color, or geographic area. They just help people." - Da’rrell, Kiva U.S. borrower

Helping businesses grow

Getting a business off-the-ground is the first step, but it takes access to capital to fuel growth and profitability. With Kiva loans, borrowers are seeing higher success rates and an optimistic outlook for the future.

Kiva borrowers are almost twice as likely to say they're profitable (42%)

“To be who I am, to live my life in my authenticity, there is this lack of resource availability.”

As a queer woman and business owner, Shannon understands the importance of inclusion — both financially and as part of a community. In addition to creating a fat-positive, anti-racist, gender-affirming wellness space, her business also features a pay-it-forward system, making their services more financially accessible. During the COVID-19 pandemic, it was a Kiva loan that helped Shannon keep her business running.  “We are committed to and actively reaching underserved populations through our work.”

Read Shannon’s story →

Creating financial security

Without a hefty savings account, the ability to cover expenses, pay employees, or feel financially secure is another steep hill to climb. Kiva loans help borrowers build their financial stability, reduce their stress, and better manage their finances.

Kiva helps fill the gap created by systemic economic inequality. Of the borrowers interviewed, Black-owned businesses were more likely  to have no savings, compared to white- and LatinX-owned businesses.

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Building credit and confidence

Without a good credit score or established credit history, accessing business capital is a struggle. Kiva loans create a path to long-term financial access — not just by providing financial resources, but by helping borrowers build their creditworthiness for the future. In fact, it’s our goal that the next time these borrowers need a loan, they no longer need Kiva.

Since receiving their Kiva loan, 52% have been able to secure additional financing, 69% were more confident they could access a business loan  or line of credit, 70% reported an improvement in their business confidence.

"Kiva allowed me to bridge the gap from being “new”  in the eyes of financiers to one that could have proven success and a track record. Now they can trust me..." - Travis, Kiva U.S. borrower

“When I was approved, I was overjoyed. And then I got funded in an hour!"

As a Black woman and entrepreneur, Kiki was hesitant to apply for a small business loan.  But with Kiva, she found a community eager to support her goal — a loan to create a line of merchandise following her book character Lollipop Lola, a Black girl being raised by two LBGT+ Black women.

“Representation of families like mine is rare… there are so few characters like Lola on  the market that have stories and are owned by Black women, and I want to begin to fill  that gap.”

Read Kiki’s story →

Creating a positive experience

On the whole, Kiva borrowers reported having a good experience. From easy-to-understand loan terms to receiving great support from Kiva, most would recommend Kiva to their friends and family.

Kiva loans make life easier, so people can pursue their dreams. 70% reported that their loan repayments aren’t a heavy burden 98% said their loan was processed in a timely manner More than 9 in 10 said the terms of the loan were clear and understandable

Driving success through Hubs

First, what are Kiva Hubs?

Hubs are local organizations invested in economic inclusion for their communities, trained to support small business owners through the Kiva application process and beyond.

Through local Kiva Hubs, we’re able to provide technical assistance and business support — resources that many entrepreneurs from marginalized backgrounds would not have access to otherwise — helping borrowers achieve even more in their businesses.

Our unique Hubs model helps us reach more marginalized borrowers and improve their business outcomes.

"The process is very easy and the support after the loan is very good, with programs to learn how to grow my business, taxes, marketing, and the payments are easy. It’s very convenient for new business or a small business." - Grecia, Kiva U.S. borrower

Learn more about how Kiva U.S. supports minority and women business owners

How Kiva U.S. is shaped by borrower feedback

Are borrowers happy with their experience at Kiva? Are they successful? Stressed? Learn how we take feedback to heart and improve our programs to better serve communities.

Feedback and growth

Kiva U.S. launches business credit reporting

What does it mean to be “credit invisible” and why is business credit so important? Find out why the ability to build credit can be a game-changer for marginalized small-business owners.

Kiva business credit

How Kiva supports the financial health of U.S. business owners

Is Kiva a good thing for U.S. entrepreneurs? 70% of borrowers reported improved business outlook and confidence. Read what borrowers say about the impact a Kiva loan had for them.

Borrower insights

Lend to Kiva U.S. borrowers

About this data

Kiva partnered with 60 Decibels, an independent third party, to better understand the impact crowdfunded, 0% interest loans have on U.S. borrowers. This report pulls from interviews with both Kiva borrowers and non-Kiva borrowers from April to May 2022.

The full study covered:

Borrower business outlook and impact
Alternative loan programs and access to business capital
Financial situation (personal and business cash reserves, long-term financial plans)
Borrower satisfaction

See the full report

Demographics of the survey sample are representative of Kiva U.S. borrowers:

63% Women, 38% Men
41% Black, 18% Latino/Hispanic-American, 25% White
7% Biracial, Indigenous, Pacific Islander, East or Southeast Asian, South Asian, Arab, 8% did not share with Kiva
402 Kiva Borrowers, and 100 Kiva ineligible applicants used for comparison group
235 Hub borrowers, 167 non-Hub borrowers