Nonprofit to offer Lincoln businesses no-interest loans

The Capital City will be the first Kiva Hub in the state, Mayor Leirion Gaylor Baird said in announcing the partnership with the nonprofit founded in 2005 as the world’s first personal micro-lending website, which began its U.S. program in 2011.

By becoming a hub, the city establishes a formal relationship with Kiva and manages the loans locally. Community Development Resources, a nonprofit financial institution formed in the 1980s to help traditionally underserved small-business owners, will administer the program. It will launch this summer.

Entrepreneurs apply directly to KivaUS and are connected to millions of Kiva lenders to crowdfund their loans up to $15,000 for 36 months, with no interest and no fees. It also enables local lenders to make direct loans of as little as $25 to entrepreneurs in their neighborhoods.

Since its beginning, KivaUS has facilitated crowdfunding for $50 million from more than 230,000 lenders to more than 8,000 borrowers, according to its website.

“We are proud that Lincoln is the first city in Nebraska to become a Kiva Hub, as Kiva loans can change lives,” Gaylor Baird said.

The mayor also announced Monday that the Nebraska Department of Economic Development designated Lincoln as an Economic Development Certified Community, a designation that will make Lincoln more competitive for state grants, said Jason Ball, president and CEO of the Lincoln Chamber of Commerce.

Luke Peltz, vice president of economic development with the Lincoln Partnership for Economic Development, said the designation makes Lincoln more competitive by strengthening responses to organizations that want to develop in Lincoln.

“This is a significant milestone for our city,” Peltz said. “This positions our team to continue attracting new business and securing new grant opportunities for the future.”

Peltz said Kiva microloans provide a key entrepreneurial on-ramp and lower the barriers to starting and expanding businesses.

The mayor also signed a proclamation Monday declaring this “Grow the Great Life Week,” and each day Gaylor Baird and community partners will highlight city achievements and initiatives designed to strengthen the economy, grow the city’s workforce, support local businesses and enhance the quality of life in Lincoln.

That started with Monday’s announcements.

“These two new designations recognize Lincoln’s efforts to foster entrepreneurship and create new economic opportunity, helping us grow the great life for all,” Gaylor Baird said.