Short-Term Working Capital Loans with Kiva Social Enterprise

The African Nature-Based Tourism Platform is pleased to share a 0% interest loan opportunity for small to medium enterprises offered by Kiva. The Platform is working directly with Kiva to facilitate applications for this opportunity. 
 
Kiva is an international nonprofit that operates a crowdfunding platform where a community of global lenders pool capital to fund loans for small businesses and individuals. 

Kiva’s Social Enterprise Program invests directly in mission driven enterprises to help them scale their impact. They provide working capital for social enterprises to enhance productivity, remove bottlenecks to growth, accelerate expansion, and seek out larger, institutional follow-on funding.

Short-Term Working-Capital Loans

Kiva’s Social Enterprise Loan program aims to finance 0% interest short-term working capital loans to social enterprises.

For first-time borrowers, Kiva is willing to finance loans starting at USD $50,000 with a maximum tenure of 12 months (exceptional cases might allow for larger amounts and 18-month terms).

For repeat borrowers, Kiva will consider financing up to USD $400,000 with tenures between 24-36 months.

How It Works

Enterprises selected for the program will work with Kiva to set up loan profiles on Kiva’s crowdfunding platform. Loans will then have a defined period of time (usually 30-60 days) to raise capital. The Kiva team will help promote your profile during this period. 
 
Kiva can never guarantee funding, however, there is flexible fundraising for larger loans. If you raise 75% you will receive the 75%. Kiva can always relist the loan to raise the amount remaining.

Interest and Fees

Kiva Social Enterprise Loans are provided with 0% interest. In lieu of interest, Kiva charges a crowdfunding fee in certain jurisdictions of 5 – 8%. 
 
This means that Kiva will deduct a fee before wiring funds after successfully fundraising the targeted loan amount.  For example, if your campaign raises USD $100,000 and Kiva charges an 8% fee, then you will receive USD $92,000 (i.e. USD $100,000 – USD $8,000 fee) and will owe Kiva USD $100,000.

Repayment

Kiva lets enterprises define their own repayment schedule with the following guidelines: 

• Grace periods under 6-9 months.
• For first time borrowers maximum repayment period of 18 months. 
• For repeat borrowers maximum repayment period of 36 months. 
• Repayments are traditionally made monthly or quarterly, but Kiva will accommodate another schedule that better aligns with your company’s cash flow cycle.

Eligibility and Requirements

• Enterprises should display a strong commitment to serving the needs of the poor, vulnerable, and/or excluded populations.
• Organisations must demonstrate a minimum sales revenue of USD $150,000* and/or assets of USD $150,000.
• Be legally registered in its country of operation.
• Have a corporate bank account (i.e. not a personal one).
• Be able to legally accept and repay US dollar debt capital.
• The activities, products, and services provided by the company must be legal.

How to Apply

Interested organisations should fill out the African Nature-Based Tourism Platform’s pre-screening application using this form.

For this initial round, applications are due on Friday June 30th, 2023. 
 
If your organisation looks like a good fit for Kiva, the Platform will reach out regarding next steps and assist you with your application directly with Kiva.