From entrepreneurs and small minority-owned businesses to Black and brown communities, low-income and financially-excluded individuals in America deal with many social and economic disadvantages that make it difficult to seek out loans.
According to Forbes, minority-owned firms are much less likely to be approved for small business loans than white-owned firms, which speaks volumes considering minority-owned establishments lead a significant portion of the nation’s businesses.
A 2017 report from the FDIC stated that 6.5 percent of U.S. households were unbanked and 18.7 percent were underbanked. Of those unbanked households, more than half cited not having enough money to keep in an account.
In an effort to solve these issues, Kiva and SoLo Funds have partnered together to offer these populations of people affordable loan products for personal and business lending.
Both companies have supported thousands of Americans through their communities of lenders, according to Kiva’s blog, and are aiming to build up safe and reliable financing options for low-income and financially excluded individuals and entrepreneurs.
SoLo Funds was created as a way to help Americans who are living paycheck to paycheck by offering lending tools to take care of emergency and everyday needs.
Kiva was similarly created as a lending tool, but instead of individuals, the company offers its services to entrepreneurs and business owners with loans ranging from $1,000 to $15,000.
As a result of COVID-19, both SoLo Funds and Kiva have received requests for more personal and business lending. Together, they coupled their unique expertise to be a vital resource to many disadvantaged Americans.
According to Kiva’s website, SoLo Funds will offer Kiva’s U.S. product to its user-base, many of whom are entrepreneurs most likely looking for business-lending options. Plus, Kiva will share SoLo’s loan product with its borrower community to provide them with a personal, peer marketplace lending option.
Additionally, SoLo Funds and Kiva strive to further make their products and services affordable by using no hidden fees.
By introducing their services to each other’s targets, the two companies will be able to help a vast network of financially-excluded people who are in need of additional assistance with their finances.
As many Black and brown Americans are still reeling from the economic effects of the global health pandemic, there’s still a need for fair and accessible credit options that eliminate the economic disadvantages they face.
SoLo Funds and Kiva are taking a step in the right direction with this unique initiative.