Is a Kiva Loan Right for Your Small Business During Covid-19?

As of mid-May, the Covid-19 outbreak in the United States was surpassing 1.41 million cases and many industries were at a standstill or apprehensively opening their doors under State jurisdictions.

Since the start of the pandemic, a series of financial relief programs were made available to small businesses including the SBA’s Economic Injury Disaster Loan Advance to the Paycheck Protection Program (PPP).  Whether your business is still amidst a lockdown, just reopened, or has been opened for a while, staying financially afloat may still be a concern.

Merchant cash advances, direct lenders for short-term small business loans, and SBA bridge loans are all viable options when financing is needed. Yet, taking on the additional pressure of a small business loan is no easy decision – especially when the future of your small business may be uncertain.

While it may be challenging to get approval for a loan even in the best economic climate, Kiva is one option to consider, and may provide the type of financial relief your small business needs. A non-profit that was founded in San Francisco in 2005, its directive is supporting small business and “expanding financial access to help underserved communities thrive.”

In simple terms, Kiva allows the chance for small business owners have access to trustee-endorsed, crowd funded, direct loans from Kiva, many with 0 percent interest. As of mid-May, Kiva made further efforts to support the small business community by the following incentives:

• Increased Access: Kiva loan programs have been expanded to more businesses.
• Higher loan amounts: The maximum loan amount has been increased  from $10,000 to $15,000
• More Flexibility: A six-month grace period for up to six months (for new borrowers).

With many types of loans available from direct lenders, Kiva is just one alternative consider to increase cash flow and maintain operating costs with a series of further incentives. While there is always the “fine print” to consider, it’s best to do diligent research to ensure a Kiva, crowd-funded loan is right you and your small business during the pandemic.