Direct loans to Kentucky farmers - what a great idea! Thanks to two new Kentucky Kiva Zip Trustees, Seed Capital Kentuckyand Slow Money Kentucky, KY farmers can benefit from this exciting program. What is Kiva Zip? Kiva Zip is a pilot program, launched by Kiva, that enables you to make direct loans to entrepreneurs. You can make a loan today for as little as $5. Over time, as your loan is repaid, you get your money back, and you can then withdraw it, or relend it to another entrepreneur. Kiva Zip Trustees source entrepreneurs they believe in and publicly endorse them as borrowers on the Kiva Zip website. Trustees endorse borrowers on the Kiva Zip platform, verifying a personal relationship between the trustee and the borrowers and vouches for their character.Trustees are not liable for the loans, but are responsible for helping to get the word out about them so they get funded! Most of the efforts for promoting the loans are through social media, such as Facebook, Twitter and email campaigns. So far, Seed Capital Kentucky has endorsed two borrowers: Adam Barr (https://zip.kiva.org/loans/3680) and Ben Abell (https://zip.kiva.org/loans/3777). Adam applied for an $8,000 loan to to build a 40 x40 packing shed for the post-harvest handling of vegetables before shipping to markets. His loan was fully funded in about 6 days. Ben Abells loan is for $10,000 to purchase sweet potato harvesting and packing equipment that will allow him to increase the efficiency and profitability of his sweet potato production. As of today, Bens loan is 90% funded. He has until June 15 to fund his loan. The important aspects of these loans for farmers is that they are zero interest loans with a 6 month grace period, and, for loan amounts greater than $5000, there is a 36 month payback period. Also, the eligibility requirements are only that they have to be endorsed by a Kiva Zip trustee. Very, very generous terms for farmers who may not have access to more traditional lines of capital. There is also a great feeling of support the farmers receive by seeing all the folks who lend to their project. For example, Adam Barrs loan was funded by 130 lenders from all over the United States, Canada, Europe, Malaysia and China. Bens loan so far has 140 lenders from all over the United States, plus lenders from Canada, Europe and as far away as China as well! For the lenders, it is important that they know that this is a LOAN, not a GIFT, so they cannot take a tax deduction, but they will get their money back! Loan amounts start at $5.00, so anyone can participate! This could be a fun way to invite younger people onto the platform, also. Most Kiva Zip trustees are only allowed to endorse 3 lenders to start, then when their first loans are paid back, they can endorse more. But because there has not ever been a farmer who has defaulted on a Kiva Zip loan, Seed Capital KY has been allowed to endorse 10 loans right out of the box. We have already endorsed these two, and are starting to reach out to other farmers we know who might be interested in taking advantage of this opportunity. For more information please contact Caroline Heine, carolineheine@gmail, at Seed Capital Kentucky or Larry Snyder, mrlarrysnyder@gmail, at Slow Money Kentucky.
Posted on: Wed, 14 May 2014 14:22:41 +0000
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