Author Archive
A U.S. Microfinance Roadtrip
By Sarah Warfield, Kiva Intern with ACCION USA
Growing up my family was big on ‘the road trip’. Every summer we would load up whatever large car we owned and we would set out on a good ol’fashioned American road trip. I’ve seen the world’s biggest prairie dog, stayed in a light house on Green bay, gotten stuck in a snow storm in New Mexico, and I can tell almost every state’s license plate from 20 feet way.
Sadly it had been a while since I’ve been on a good road trip, but now at ACCION USA as the Kiva intern I feel like I’m on a constant road trip. Everyday is a new client in a new city with a new story. It has impressed upon me that US microfinance is a giant map and every small business is another destination waiting for a visit. Plus, Kiva is now opening its doors to more US partners and the access that lenders will have to these destinations will be even greater–expanding the scope of the microfinance road trip.
A Year in the U.S.
I’m not one for remembering dates; I’ll even admit that I confuse my mom and dad’s birthdays. So when June 10th was approaching, there weren’t any plans going on to celebrate the one-year anniversary for ACCION USA’s partnership with Kiva.org.
Without further adieu, a blog post to commemorate the partnership!
On June 10, 2009 the first U.S. loan appeared on the Kiva website, Elizabeth Polanco. I did my best to be the first person to lend to a U.S. entrepreneur; Maria Shriver beat me to it though!
The weeks that followed ensued passionate conversation about the need for microfinance in the United States, compared to traditional Kiva partners in developing nations. A lending team on Kiva was created to support us, check out the Happy Kiva Lenders . There were also some interesting conversations going on in the blogosphere that have helped fuel more support and awareness for microfinance globally.
Since June 10, 2009, ACCION USA has raised almost $500,000 dollars to support 95 borrowers through Kiva.org. Each of these borrowers has had a chance to share their story of entrepreneurship with the lending community on Kiva. Their Kiva profiles help generate a narrative about the successes and challenges for entrepreneurs in the United States and the need for access to small business loans.
U.S. microfinance has only reached the tip of the iceberg, so to speak. It is through partners like Kiva that ACCION USA is inspired and become innovative to reach those in need. With our missions aligned, ACCION USA and Kiva will continue to grow and inspire interest in microfinance.
And now for the Thank You’s!
Dear Kiva lenders, we have been overwhelmed by your generosity and conviction to the mission of microfinance. Thank you for many of your warm hearted comments on our journal updates- they mean a lot to both our staff and borrowers. We hope that you choose to continue supporting ACCION USA through Kiva.org.
To our borrowers, a sincere thank you for participating in the Kiva program—your stories are the reason that we come to work everyday!
Please take a look at ACCION USA’s current loans fundraising on Kiva and comment on this blog by letting us know if you choose to support US Microfinance, and why…
This post was written by Erica Dorn. She served as a Kiva Fellow and now coordinates the Kiva program at ACCION USA.
Why I Love New York and Microfinance
From Elizabeth Bueno, Kiva Program Intern at ACCION USA, Kiva’s first Domestic Field Partner.
Although I grew up in Queens and currently live in Brooklyn, the Bronx can feel like a world away. I find this interesting, since when I was a child I would dream of going to India or another far off country to somehow help humanity. My family never understood why I would want to go to India when I come from Colombia, a country that also suffers from deep poverty and even an internal civil war. What I’ve learned, especially living in New York, is that you don’t have to go very far to make a contribution to this world. My visit to an ACCION USA client, Leopoldina, was a reminder of that fact.
As the Kiva Intern at ACCION USA, one of my duties is to visit our clients to capture video and stories to post to the Kiva Web site. After a 50-minute subway ride, I came out from underground to the ecstatic rhythm of salsa music blasting from several cars. The smell of fried food mixed with incense burning from the local restaurant to provide a rapid awakening. I followed my Google Map and made the long walk to Leopoldina’s apartment in the public housing buildings.
Leopoldina knew that I would be making a visit to capture a video for the Kiva.org website. She greeted me very warmly and professionally. In her kitchen she had laid out a black cloth that beautifully displayed her gold jewelry. It was such an energetic environment; there were loud noises and medical equipment strewn around the house. She got right down to business and explained her hard, yet inspiring path to entrepreneurship.
Leopoldina was a factory worker. Because she is the mother of a special needs daughter, she left to be a housekeeper since it would allow her flexible hours. Only later did she decide to start up her own home-based jewelry business, using a small business loan from ACCION USA to purchase her first batch of inventory. In her eight years in business, she has become very skilled at selling. Leopoldina explained that selling her jewelry is therapeutic and lifts her spirits during difficult days. I was amazed by her knowledge of the art of sales. She beamed self-reliance.
As I sat at Leopoldina’s kitchen table, I could hear the moaning sounds of her daughter in the other room, and the neighbor’s shouting. But the sound that truly resonated was the strength and determination that I heard from Leopdoldina’s voice. “Me encanta Nueva York, mucho!” ’I love New York,’ she said. I felt a deep reminder for why I love New York, a city where immigrants like she and I can meet by happenstance and realize that we are both living our dreams.
ACCION USA visits borrower Leopoldina from ACCION USA on Vimeo.
Takin’ it to the Web: Online Microbusinesses Thrive in Recession
By Erica Dorn, KF7 and now Kiva Coordinator at ACCION USA
I spend a good chunk of my time at ACCION USA trying to explain to the entrepreneurs what Kiva is, and why they should be as excited as I am to get their profiles on the internet so regular people can lend to them. So, you can imagine my surprise when an ACCION USA borrower, Dan, told me he found out about ACCION USA through Kiva’s website, instead of the other way around!
Dan and his self-designed greeting cards (more…)
Microentrepreneurs, Remembering 9/11
Luis was one of the first Kiva borrowers I interviewed as a fellow at ACCION USA. His sincerity and open heart are noticeable from the very beginning.
When Kiva’s president Premal Shah came to NYC during the domestic launch he had a chance to meet Luis. As Premal, Gina Harman (ACCION USA CEO), Paul Quintero (ACCION USA CFO), and I began to talk to Luis about his road to entrepreneurship, his true story unfolded.
Luis faced many hardships coming to this country and building a life for himself. On September 11, 2001 he made a delivery to the World Trade Centers and left just minutes before the first plane hit. Luis survived, his delivery van did not.
Through a unique loan progam offered by ACCION USA after 9/11, microentreprenuers like Luis were able to get funding to get their businesses back up and running after the tragic day. ACCION USA’s American Dream Fund supported over 300 small business owners after the crisis of September 11.
Watch the rare video as Luis tells his story of entrepreneurship and talks about his experiences on that tragic day. It is a testament to the role that small business played in helping New York recover after 9/11.
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Erica Dorn coordinates the Kiva Program at ACCION USA. She is a former Kiva Fellow. edorn@accionusa.org
The Nature of Poverty
I’ve seen the effects of poverty in many parts of the world. A year spent in Latin America couldn’t have prepared me for the crushing poverty that I saw in India. In Jaipur- the lonesome eight year old girl with a baby strapped to her back collecting garbage along the train tracks. In Mumbai- the endless lines of street dwellers sleeping alongside the highway and the horrified starved looks on their faces. The man that used one arm to pull the small remaining portion of his body across the harsh cobblestone paths of Varanasi- I could never erase that image from my memory.
Nor can I erase the feelings from my heart after what I saw in New Orleans post- hurricane Katrina. The community was abandoned and left in shambles and the residents, after years of neglect were nearly helpless. I’m often heartbroken by the exposed and vulnerable I see on the streets of New York City- old, young, pregnant, war veterans and others just lost. When I visited my home last week, it was hard to miss the bulging crowd outside of the Denver Rescue Mission- or maybe it just looks smaller when the crowd huddles together to escape the freezing winters.
Trying to compare the destitute in San Francisco or New York City to the desolate in Katmandu or Lima would do an incredible injustice to truth of these individual situations. The nature of poverty in the United States often manifests in ways that we don’t commonly label as “poverty”, especially once compared to the destitution we see in developing countries. I can’t pinpoint it but, the look of boredom I saw yesterday on the face of a four year old girl in New York City, elicits a similar feeling from me as seeing the languish on the face of a child in India.
You cannot compare the empty stomach of a child in New Delhi to the bulging belly of a boy in Brooklyn; however the look of malaise on both of their faces can be a symptom of some form of poverty. Poverty can be due to the lack of dignity involved in the process of consumption. Over abundance and extreme lack have both been known to create hopelessness, violence, and severe health problems. The types of poverty that I distinguish have manifested themselves differently and each deserves a compassionate call to response.
How does this relate to Kiva…
The United States has been suffering from a community disconnection that has been growing for decades, and the affect has had implications across the globe. The movement to bring back our sense of community has taken many forms. Some buy locally grown foods or volunteer at local school programs. Now, you can choose to lend locally on Kiva and support small businesses that foster strong and dignified communities. I’m a firm believer in the interconnectedness of humanity, and that even the smallest of actions can have profound and long lasting impacts. By supporting a microenterprise on Kiva you are supporting the rights of an individual to a dignified way of earning a living and supporting their family- dignity is a strong word.
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Erica Dorn has recently completed her Kiva Fellowship at ACCION USA in New York City. She will be continuing a career in US Microfinance and can be reached at ericadorn@gmail.com. You can also follow her blogs related to US Microfinance at ACCIONUSA.org/blog
A Local Lending Place for Global Thinkers
At the fellows training some of my companeros seemed shocked that I’d want to do a fellowship in one of the most expensive cities in the world. I have to admit, I admire the cost of a Terere in Paraguay compared to price of latte in NYC. Regardless, it’s been an incredible experience to participate with Kiva on the US launch.
In many ways the fellowship, the entreprenuers, even New York City itself has at times seemed enormously comparable to a fellowship in a developing country (I mean have you used the subways here!!!???). But about the cause…
Why US microfinance….
By launching in the United States, Kiva is creating a local lending place for global thinkers. By supporting US microfinance and organizations like ACCION USA, you are supporting community.
Kiva lenders want to support individuals around the globe that work hard to support themselves and their families. These entrepreneurs also dream of creating legacies. Kiva is helping to provide equal access to capital for business owners that, regardless of the country they live in, have struggled to obtain the credit elsewhere.
I believe that by supporting a US business on Kiva, we truly understand the goal of microfinance- and we are balancing the scales to open up opportunities for everyone.
Trinidad wanted to start a daycare, a bank turned her away, a loan shark almost lured her… instead a pool of individuals on Kiva helped to make her dream reality.
Sustainability is one of Kiva’s principles. Who can argue that sustainability isn’t needed in the US?
Kiva lenders are supporting sustainable businesses, building communities and helping to create legacies- 25 dollars at a time.
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Erica Dorn is currently serving at ACCION USA. erica.dorn@fellows.kiva.org
Kiva’s First US Loan
Maria Shriver and I just made a loan to Elizabeth, the first US Kiva Borrower- next week Elizabeth is cutting my hair!
The adrenaline rush I have right now going onto Kiva’s website and seeing loans for entrepreneurs in the United States might compare with what sports fans feel when they watch a good super bowl game.
It’s so exciting. I log into my Kiva account and can see the borrowers that we have been gathering the last few weeks all the sudden go active on the Kiva website.
Preparing for the U.S. launch has been somewhat of a “top secret” operation over the last few months and today it’s finally real.
Check out a few videos of some of the borrowers from ACCION USA that are included in the June 10th US Launch!
Joe from Erica Dorn on Vimeo.
Luis delivery service from Erica Dorn on Vimeo.
Gotta go.. Premal is coming on Good Morning America!!!
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My personal interest in US microfinance began while fundraising for rebuilding projects in New Orleans after Hurricane Katrina. Seeing the desperate need for support of small businesses aid and development to strengthen communities, it has become a goal to spread awareness about US Microfinance. I have been thrilled to be the first domestic Kiva Fellow helping launch such a momentous development in US Microfinance.
Check out all of the ACCION USA loans being funded on Kiva.
For more information- kivaprogram@accionusa.org (I’ll be the fellow checking the email) Wonder how many will come in today?
U.S. microfinance: Who’s on our side?
One evening last week, Brooklyns’ Borough Hall opened its doors to over hundred information hungry entrepreneurs.
Nydia Velazquez, A spunky and bold congresswoman addressed the diverse crowd of entrepreneurs.
This is what she had to say…
Nydia Velasquez from Erica Dorn on Vimeo.
The recovery package has included…
The economic recovery package will enable up to $50 million to be disbursed in small, community-based loans like microloans that are capped at $35,000 each. In addition to this money, $24 million in technical assistance grants will also be available for the microlenders.
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Erica Dorn is a fellow in New York City researching U.S. Microfinance. Please feel welcome to contact her at erica.dorn@fellows.kiva.org
U.S. Microfinance 101
U.S. Microfinance 101
I hear the phrase U.S. microfinance and I perk up- I’m not alone. Last week I was at a microfinance 101 meeting in New York City. The event was catered to a group of young professionals that were interested in getting involved, somehow, in U.S. microfinance. Someone asked a question about repayment systems for U.S. microloans, wondering if borrowers come into the office to make repayments or do the loan officers go “into the field” to collect? The end goal with domestic microfinance is the same as it is internationally; empower individuals to create prosperity through entrepreneurship.
To answer her question: on occasion a borrower may come into the office to drop off their payment, or a loan consultant will do a site visit. Generally speaking in the U.S. the repayment system is electronic, a monthly debit from the borrowers bank account. This sounds less compelling than the vision of a loan officer riding the entire day on a motorcycle to a rural village to collect a five dollar repayment from a loan for a cow. But, not to worry there are definitely other aspects of appeal for domestic microfinance.
Entrepreneurs are turned away from traditional U.S. banks for many reasons, maybe because of a low credit score or no score at all. They may not have a solid business plan or have not yet acquired the appropriate permits and licenses. In many cases though, the estimated $30 million unbanked Americans simply aren’t served or don’t have access to traditional banking. Many entrepreneurs just need a few tools to help them create prosperity- microfinance institutions can provide that.
Credit scores were discussed at the microfinance meeting last week. One person pointed out that a large American bank just announced that they weren’t loaning to anyone with a credit score below 800, in other words: they aren’t lending. Microfinance institutions are lending, the largest U.S. microlender requires a credit score of just 575. U.S. microfinance institutions make loans to individuals ranging from $500- $50,000. They offer loans and other products such as financial literacy to individuals from all walks of life.
It’s very common in the U.S. to have a client walk into a microfinance institution with a bag full of tiny pieces of paper and request a loan. Traditional banks would quickly turn the client away. At an MFI, a loan consultant will sit down and go through each piece of paper to create a cash flow, help create a business plan and refer the entrepreneur to other agencies to get appropriate licensing. An MFI loan consultant will do everything they can to give the borrower the credit they need.
Domestic microfinance is in a position to begin scaling up to meet the needs of more low-medium income borrowers. Individuals from all walks of life can find themselves in need of the kinds of services a U.S. MFI can offer. Services like $500 credit builder loans, or help with creating a business plan, larger loans for business capital and inventory, and other types of financial literacy services. Microfinance provides individuals with the power to be self-sufficient and to create a legacy and life of prosperity. Domestic microfinance is playing a part in fulfilling this dream for entrepreneurs from coast-to-coast.
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Erica Dorn is a Kiva Fellow researching U.S. microfinance in New York City.
U.S. microfinance, Let’s see.
The other day in the Mission district at Kiva headquarters in San Francisco, I converged with three micro enterprises, on just one corner. A young man selling fresh oranges, a Popsicle and ice-cream cart vendor, and another man with a tall stick of cotton candy- $2 each. Although this coincidence is quite novel, it does explain another, larger phenomenon. Perhaps the true impact of small businesses in the U.S. is underestimated. AEO, the association for Enterprise Opportunity, says that 87% of all businesses in the U.S. are microenterprises, businesses with fewer then 5 employees.
As a fellow, Kiva has given me the opportunity to research U.S. microfinance as they look into expanding into the U.S. market. The Mission district for example is one of the most culturally and economically diverse neighborhoods in the U.S. There exists an interconnected community of businesses, many of them reminiscent of microenterprises I’ve seen traveling in the developing world or even on the Kiva website for that matter. It’s made me second guess why I hadn’t come here to study Spanish and Latin American culture- unarguably I would have had the most diverse experience possible.
In San Francisco, Denver, Omaha, Detroit and New Orleans there are all types of fascinating microenterprises. Businesses owners with retail shops, cosmetics sales, arts and crafts, janitorial services, and food vendors- just to name a few. Many of these businesses are using microfinance to get started and to get ahead. The backbone as U.S. businesses are sometimes referred to is asking for some reinforcement in a time of hardship. It may be microenterprise that helps tone the future of business in the U.S. Lets see.
Over the coming months of my Kiva Fellowship, I will continue to research U.S. microfinance on many different levels in several U.S. cities. Take a look at the video I made while in San Francisco’s Mission district. I will be continuing my research in New York City, so stay posted for more on U.S. microfinance.
Link to Video-
Meet the fellows! Class 7
From San Francisco to Cambodia, Tajikistan and beyond. Kiva Fellows class 7 is off into the field… with cameras in hand.
Look out for more interesting videos from the fellows as we embark on this incredible Kiva journey. And please share your thoughts with us.
