Overview

Why are you interested in becoming a Trustee?

Microfinance at Berkeley was established to enable UC Berkeley students to act as loan officers and promote borrower outreach on behalf of Kiva Zip. Our founder interned at Kiva for 10 months, and realized that Kiva Zip was an amazing opportunity to bring microfinance learning to Cal. MFB is now composed of a group of highly enthusiastic students of diverse academic backgrounds and wide range of microfinance experience. By combining the knowledge and resources of the campus with the responsibilities of a Trustee, we engage students in a movement to sustainably benefit small businesses in our community.

What is the mission of your organization?

Microfinance at Berkeley is a UC Berkeley student-run group with a mission to promote entrepreneurialism in the Bay Area by offering our clients the access to microloans. We also seek to serve as a platform for UC Berkeley students to expand their knowledge about microfinance. By channeling the time, enthusiasm, and energy of students, we strengthen ties between the campus and the local community while empowering local entrepreneurs.

Borrower Due Diligence

How will you decide who to endorse as a borrower? What due diligence will you conduct?

After an initial interview in which we will ask borrowers to tell us about their financial history, we will thoroughly review their credit report and two of their most recent bank statements and pay stubs. If the borrower has a history of late repayments, many collection accounts, or high credit card balances, we will require an explanation as well as clear evidence that they have sought to remedy these issues. Of the three references we will require, one will be the borrower’s landlord (if they rent). If the borrower has a history of late rent or mortgage payments, or has experienced a short sale, we will also require an explanation. We will not endorse a borrower who is currently undergoing bankruptcy, experiencing home foreclosure, has open liens, or unpaid judgments. Additionally, our borrower’s monthly loan payment to disposable income ratio cannot exceed 33%. Also, through a minimum of 2 interviews (one on the phone and one in-person) as well as 3 references, we will seek to understand the borrower’s character. Good indicators of character can include a borrower’s promptness in completing our application process, willingness to seek help in improving their business model, and demonstrated passion for their field of business.