City pledges up to $1,000 in zero-interest loans for women launching crowdfunding campaigns to start or grow their businesses; City contribution will facilitate $3 million in loans and 500 new businesses in three years
Mayor Bill de Blasio and the not-for-profit crowdfunding platform Kiva.org launched WE Fund: Crowd, a first-of-its-kind City-led crowdfunding program to help women entrepreneurs access affordable capital and start businesses in New York City. Through Kiva, women entrepreneurs can apply for crowdfunded loans of up to $10,000 and the City will contribute the first 10% of their loan request. The program is designed to reach at least 500 businesses over three years.
“Leveling the playing field for women entrepreneurs will help grow and diversify our economy, and strengthen our families and neighborhoods,” Mayor Bill de Blasio said. “With Kiva, we will help launch small businesses that might otherwise never get off the ground.”
“Connecting women entrepreneurs directly to investors gives them access to seed money they need to open stores, restaurants and fashion companies in neighborhoods across New York City. As we continue to focus on stabilizing communities, growing jobs and supporting women in business, this collaboration with Kiva.org is simple and smart,” Alicia Glen, Deputy Mayor for Housing and Economic Development said.
“This joint initiative aims to drive social impact as well as provide crowdfunded capital to women who are traditionally denied loans,” said Jonny Price, Senior Director of Kiva U.S. “At a national level, if women were to receive a proportional amount of traditional small business loans, lending to women would increase almost sevenfold. This partnership is so important it can go a long way in demonstrating a path forward for entrepreneurial women across the country.”
WE Fund: Crowd helps address the gender entrepreneurship gap:
· Seventy percent of women entrepreneurs in New York City cite access to capital as a major challenge as they launch and grow companies.
· While approximately half of women entrepreneurs in New York City seek less than $10,000 when launching a business, traditional financial products are often unavailable in small amounts and non-traditional financial products typically come with high interest rates.
Entrepreneurs interested in the program should visit we.nyc.
How WE Fund: Crowd works:
· The City will contribute the first 10% of an entrepreneur’s crowdfunding goal when they launch their campaign.
· This loan from the City will be confirmed when the entrepreneur meets their full fundraising goal.
· The City’s contribution is capped at $1,000 per campaign and includes no-interest repayment terms for up to 42 months.
· In total, the City’s commitment will facilitate more than $3 million in loans.
· Lenders: Visitors to www.Kiva.org can choose the woman entrepreneur they want to help crowdfund with a loan of $25 or more. As the entrepreneur repays, lenders can relend to another person or withdraw their money and put it back in their pocket. Neither lenders nor Kiva make any money from the loans facilitated. The City will provide the first 10% of the loan to help the entrepreneur reach her crowdfunding goal.
· Borrowers: Kiva’s loans are available up to $10,000 and are designed to reach women-owned small businesses locked out of traditional lending. Loans are offered at 0% interest, no fees, no minimum credit score, collateral, or minimum years of operation. Ninety-five percent of loan requests are fully fundraised, which is rare among crowdfunding sites.
This partnership with New York City is the first time that Kiva has worked on a government-supported crowdfunding initiative to provide seed money specifically for women entrepreneurs.
Founded in 2005, Kiva is an international nonprofit with a mission to connect people through lending to alleviate poverty and expand economic opportunity. Kiva has connected 2.5 million entrepreneurs in 83 countries with over $1 billion in loans crowdfunded by 2 million individuals.
WE Fund: Crowd is also partnering with Kickstarter, Indiegogo, GoFundMe, and CrowdCrux to create digital tools to increase women’s participation and success in crowdfunding campaigns.
Those interested may also register for the WE NYC: Show Me the Money conference on November 21st at NYU’s Kimmel Center. The program will cover an array of topics related to business finance, including crowdfunding and other accessible financing options.
WE Fund: Crowd is part of WE NYC, a women’s entrepreneurship initiative launched by the City’s Department of Small Business Services in 2015. WE NYC connects women to mentoring, expert advice and customized business and leadership courses to help them start and grow successful businesses. WE NYC has engaged nearly 4,000 women across New York City.
“The City is invested in women entrepreneurs and today we are proving it by launching an innovative program to help more women raise the capital they need to succeed,” said Gregg Bishop, Commissioner of the City’s Department of Small Business Services. “Having the City as their first investor will help women entrepreneurs build momentum in their crowdfunding campaigns and attract additional investors.”
“I believe that WE Fund: Crowd, a first-of-its-kind City-led crowdfunding program to help women entrepreneurs access affordable capital and start businesses in New York City is an excellent program to give women a competitive edge in launching a business,” said Nunzio Del Greco, President and CEO of the Bronx Chamber of Commerce.
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