Kiva Zip is a non-profit that makes 0% interest loans to small business owners throughout the United States. 2015 was a great year for our program -- here's why...

1. 2015 annual review
Althea, Gilliard Farms
Brunswick, GA

2. $0k
$250k
1974 2014
Household Income
$129k
$207k
$20k $21k
Top 5% of
households
+61%
Bottom 20%
+7%
2014 dollars; Source: census.gov
-$50k
$750k
Bottom
quintile
Second
quintile
Third
quintile
Fourth
quintile
Top
quintile
Household Net Worth
2000
2011
-566% -49%
-7%
+10%
+11%
2011 dollars; Source: census.gov
Income and Wealth Inequality are on the rise in America.

3. $0k
$250k
1974 2014
Household Income
$129k
$207k
$20k $21k
Top 5% of
households
+61%
Bottom 20%
+7%
2014 dollars; Source: census.gov
-$50k
$750k
Bottom
quintile
Second
quintile
Third
quintile
Fourth
quintile
Top
quintile
Household Net Worth
2000
2011
-566% -49%
-7%
+10%
+11%
2011 dollars; Source: census.gov
Income and Wealth Inequality are on the rise in America.

4. And we believe Small Businesses can reverse this trend.
“That's the beauty of
entrepreneurship: If a new company
is formed, it hires people and
creates jobs in its community. As it
grows, people’s opportunities
multiply and wages rise. Inequality
diminishes because people get
pulled into good jobs.
Today, two-thirds of new net jobs in
the U.S. are being created by new
firms that are less than five years
old. If you want to ease income
inequality, what you want are more
new firms starting up and seeking
employees.”
Andrew Yang, CEO
Venture for America
Marc, SF Laser
Oakland, CA

5. 6%
8%
10%
12%
14%
16%
1978 1988 1998 2008
But Small Businesses & Entrepreneurship are under threat.
Over the last few years, firm exit
rate has exceeded firm entry rate
for the first time in decades.
Firm exit rate
Firm entry rate
U.S. firm entry and exit rate by year
Source: U.S. Census Bureau; The Washington Post

6. 0.5
1.0
1.5
2000 2005 2010
Because it’s increasingly hard for them to Access Capital.
Large business
loans, +36%
Change in the Volume of Small Business Loans
Source: Institute for Local Self-Reliance; Federal Reserve Data.
Small business loans are less than $1M; Micro business loans are less than $100K
Small business
loans, -14%
Micro business
loans, -33%

7. That’s where Kiva Zip comes in!
Esteban and Carolina, NoDá Design Studio
Brooklyn, NY

8. In 2015, Adolis borrowed
$10,000 from 99 lenders to
buy a new baking oven and
refrigerator, and open her café
Lovely Rita in Manhattan.
“I would like to thank all
of you very much!
Family, friends and
strangers who supported
me by funding my loan,
but also thank you for
your amazingly warm
wishes and
encouragement!
I consider this a very big
contribution to my
success!”
Adolis, Lovely Rita
Manhattan, NY

9. In 2015, Amine borrowed
$8,250 from 107 lenders to
invest in new equipment and
marketing materials for his
restaurant in San Francisco’s
Tenderloin district.
“Thank you guys for your support.
If you get the chance, please
come check out my restaurant. It
would be great to meet you.”
Amine, Soul Food City
San Francisco, CA

10. In 2015, Bryce borrowed
$10,000 from 145 lenders to
expand his certified organic
greenhouse and install a
renewable fuel heating
system on his family farm.
“Best wishes on the growth and
development of the farm”,
Kenneth, Lender, Morrisville, NC
Bryce, Lazy Eight Stock Farm
Paint Lick, KY

11. In 2015, 39,014 people crowdfunded $4,715,325
of loans to 811 U.S. small business owners looking
to make a positive impact in their communities.
Amy, Building Hugger
Detroit, MI

12. We were proud of our growth rate in 2015…
$0.0M
$0.4M
$1.6M
$2.7M
$4.7M
$8.6M
$0M
$3M
$6M
$9M
2011 2012 2013 2014 2015 2016 target
Kiva Zip fully funded loan volume by year
87 356 578 811 1,5006 loans
made
+351%
+67%
+73%

13. …And proud of a few other rates too.
90% funding
success rate
89% Loan repay-
ment rate
0% interest
rate
Martha, Words on Woodcuts Press
Philadelphia, PA

14. We continued to iterate on our “Social Underwriting”…
Antisocial
underwriting
Social
underwriting
Lending decisions are made based on
financial data – the strength of a
borrower’s credit score, collateral
and cashflows.
Lending decisions are made based on
social data – the strength of a
borrower’s character, or their
standing in their community.
Loans (and underwriting decisions) are
made for the purpose of minimizing
risk and maximizing profit.
Loans (and underwriting decisions)
are made for the purpose of having a
positive social impact.
Lending decisions are autocratically
made by a single, centralized,
objective and inflexible algorithm.
Lending decisions are democratically
made by a crowd of millions of
people – each with their own
subjective interests, passions and
reasons for lending.

15. …which allowed us expand economic opportunities for all.
Caucasian
African
American
Hispanic
Asian
Biracial
Pacific
Islander
Kiva Zip 2015 loans by ethnicity
More than half of our loans
went to ethnic minorities in
2015, and more than half
went to women small
business owners…
…This compares to 36%
and 15%, respectively, for
traditional retail bank loans.
Source: Kiva Zip data, PayPal Working Capital study

16. We launched Kiva City Milwaukee in February…
Mayor Tom Barrett launches Kiva City
Milwaukee at Milwaukee City Hall
George Mosher William G. and Christie A. Krugler

17. …Kiva City San Francisco in October…
Kiva President Premal Shah and
Kiva Zip borrower Anna Tvelova
launch Kiva City San Francisco
inside SF City Hall

18. …Kiva City New York in December…
Bill Clinton launches Kiva City
New York in December 2015

19. …and got some great press coverage as a result.

20. Our impact is made possible by our Trustee partners…
1) NYC Small Business Solutions Centers,
New York, NY
2) Tenderloin Economic Development
Project, San Francisco, CA
3) The Wisconsin Women’s Business
Initiative Corporation, Milwaukee, WI
4) Union Kitchen,
Washington, DC
5) The City of Oakland,
Oakland, CA
6) Institute for Veterans and Military
Families, Syracuse, NY
7) Mission Economic Development
Agency, San Francisco, CA
8) Northern Virginia Family Service,
Falls Church, VA
9) Build Institute,
Detroit, MI
10) Centro Community Partners,
Oakland, CA
Mission Economic
Development Agency,
San Francisco, CA
We couldn’t fit all 700 on one slide, but here are the Top 10:

21. …by our wonderful team, many of whom are volunteers…

22. …and by our lenders, whose generosity inspire us every day.

23. To everyone in the Kiva
Zip community, thank
you for making 2015
such a wonderful year.
We hope we’ll see you
again in 2016!
Scott, Fox Farm
Riverside, CA
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