Kiva Debuts New Direct to Social Enterprise Program
Wednesday, July 6, 2016
Earlier this week, microfinance platform Kiva announced the launch of its new direct to social enterprise program, which is described as a pilot program that aims to raise capital for social enterprises in a new and more efficient way.
Kiva revealed in a blog post:
“Social enterprises have the potential to strengthen their communities and reduce poverty by expanding formal employment, scaling innovative social solutions and driving sustainable economic growth. However, they often fall in the ‘missing middle,’ meaning they are too small for traditional banks, but too big for microfinance.”
The portal also revealed that it used two different models to support small social enterprises in the past:
- The social enterprise itself is set up as a Kiva Field Partner: The social enterprise must have its borrowers, whose profiles they post on Kiva.
- The social enterprise is a borrower of a Kiva Field Partner: The Field Partner is typically an impact investment fund, social enterprise accelerator or other organization whose primary clientele is social enterprises.
Source: Crowdfund Insider (link opens in a new window)
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