Across the country, small business owners with strong ideas and community roots are being held back by financial systems that weren’t built for them. Many are just starting out, don’t have access to credit, or face systemic barriers due to race, gender, geography, or immigration status. For these early-stage entrepreneurs, traditional bank loans are often out of reach.
Banks want to help. Many are actively seeking ways to invest in the communities where they live and work, grow future customer pipelines, advance economic opportunity, and meet Community Reinvestment Act (CRA) goals. But without the right tools, it’s hard to reach the entrepreneurs who need capital the most.
That’s where Kiva comes in. Kiva is a platform for collective action. It connects individuals and institutions to crowdsource funding for small businesses that are often overlooked by traditional finance. Through Kiva, banks can support early-stage, low- to moderate-income (LMI) entrepreneurs without taking on credit risk. It’s a practical and scalable way to open the door to capital and contribute to systemic change.
The challenge: Reaching entrepreneurs traditional lending misses
Entrepreneurs from underinvested communities are often stuck at the bottom of the capital ladder. They may have strong business ideas, community support, and a solid plan, but lack credit history, collateral, or documentation required by banks.
According to Kiva data, 76% of Kiva U.S. borrowers have never received any form of formal financing before. Most are running their business on personal savings or income from family and friends. They’re not just looking for a loan. They’re looking for a starting point.
For banks, these entrepreneurs represent a challenge, but also a meaningful opportunity. Supporting these business owners allows banks to contribute to the economic vitality of their communities, help close financial access gaps, and build future customer relationships. The question is: how can banks support them now, in a way that’s effective and responsible?
Kiva’s crowdfunded loan model
Kiva’s model gives banks a new way to fund early-stage businesses in LMI communities. Here’s how it works:
Kiva borrowers in the U.S. apply for loans ranging from $1,000 to $15,000.
Loans are crowdfunded by individual lenders through the Kiva.org platform.
Borrowers pay 0% interest and are not required to provide collateral or a credit score.
Kiva handles all underwriting, servicing, and repayment tracking.
Banks can partner with Kiva to match crowdfunded loans for borrowers in designated communities or referral pipelines.
This structure allows banks to support small business owners who are typically left out of financial systems, without adding risk to their own balance sheets. Borrowers can build credit through repayment, and many go on to qualify for traditional financing later. Banks can also refer customers who don’t yet quality for their own products to Kiva, offering a stepping stone that builds long-term trust and connection.
Expanding impact with CRA alignment
A partnership with Kiva can help banks:
Reach businesses in designated assessment areas
Support economic development through targeted lending
Meet the capital and credit needs of LMI communities
Combine public (crowdfunded) and private (bank-funded) resources for greater impact
These outcomes align closely with CRA objectives. While each bank and regulator determines CRA eligibility independently, Kiva partnerships have previously qualified under the CRA Investment Test. That’s because Kiva’s work supports the core goals of CRA: expanding credit access, supporting economic opportunity, and investing in communities that have been historically underserved.
And while CRA alignment is important, banks also partner with Kiva to achieve broader business goals, like diversifying their pipeline, demonstrating community leadership, and contributing to a more inclusive financial system.
From access to action: What partnership can look like
Kiva’s partnership model is flexible. Banks can shape their fund design to reflect their geographic priorities, business diversity goals, or community referral strategies. For example, some banks:
Match loans for businesses referred through internal advisors or community partners
Target support to businesses in technical assistance programs
Focus on specific regions or target populations
Train local staff or program officers to guide eligible entrepreneurs through the Kiva process
A revolving loan fund allows banks to match multiple loans with the same pool of capital over time. As loans are repaid by borrowers, the repaid funds return to the bank’s Kiva account and are available to support future loans, making the impact of each dollar go further.
Kiva’s account team provides dedicated support with fund design, deployment, and reporting, helping partners track progress and stay aligned with internal goals.
Kiva’s public platform provides powerful visibility for bank partners. When a bank matches a borrower’s loan, their support is prominently displayed on the loan’s fundraising page, alongside the community of individual lenders who are contributing as well. In one partnership, a 3:1 match helped attract more than 10,000 individual lenders to join the bank in supporting small businesses in the pacific northwest.
This kind of collective action sends a strong message: the bank isn’t just providing capital. It’s joining a broader movement to advance economic opportunity and financial inclusion.
A step toward systemic change
Kiva’s mission isn’t focused on charity. It’s focused on creating systems that work for more people, in more places, and making it easier for institutions and individuals to take action together.
When banks partner with Kiva, they aren’t just checking a compliance box. They’re contributing to a collective effort to rethink what financial access looks like and who it includes. These partnerships demonstrate what’s possible when communities come together to expand access and remove barriers.
If your institution is looking for a new way to meet your goals, while supporting underestimated entrepreneurs and building trust in the communities you serve, Kiva is ready to work with you.
📅 Interested in learning more about how Kiva partners with banks? Schedule a call with Ian Sandler to explore how your bank can unlock capital for early-stage businesses and create long-term impact.
