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File #: 13-394    Version: Name: Kiva Zip Staff Report
Type: Staff Report Status: Filed
In control: City Council
Meeting Date: 10/21/2013 Final action: 10/21/2013
Enactment date: Enactment #:
Title: Staff Report for a Resolution Approving an Application to Serve as a Trustee for the Kiva Zip Micro-Lending Program
Sponsors: Cynthia Battenberg
Attachments: 1. Trustee Application.pdf, 2. KIVA Zip Application Responses.pdf, 3. Kiva Zip FAQ.pdf
Related files: 13-454
Staff Report for a Resolution Approving an Application to Serve as a Trustee for the Kiva Zip Micro-Lending Program


Staff recommends that the City Council approve a resolution authorizing the City Manager to transmit a Trustee Application to Kiva to identify and recommend small businesses in San Leandro for Kiva Zip's micro-lending program.


Dissolution of the Redevelopment Agency requires a new approach to business development that seeks out innovative and alternate funding sources for business incentives that do not rely solely on the General Fund. For example, the Downtown San Leandro Community Benefit District (CBD) set up a financially sustainable way to fund maintenance, security and marketing activities for properties in the downtown. Likewise, Kiva Zip provides the City's Office of Business Development another financial incentives tool to attract and support businesses in San Leandro.


Kiva Zip is an innovative pilot program launched by Kiva, the world's first and largest micro-lending website. Kiva, a non-profit organization based in San Francisco, became famous for enabling anyone with an internet connection to lend as little as $25 to alleviate poverty. Kiva Zip is not like the typical "crowdfunding" organizations such as Kickstarter, GoFundMe or where start-ups and entrepreneurs receive cash donations for their business ideas. Kiva Zip provides 0% interest capital loans up to a maximum of $10,000 directly to small-business borrowers.

The Kiva Zip lending model relies on a network of Trustees who facilitate the lending process by sponsoring borrowers and working with them to keep up their repayment reputation. Trustees are responsible for sourcing Kiva Zip borrowers, reviewing their businesses, vouching for their character, and publicly endorsing them on the Kiva Zip website. Trustees have no financial liability for the loans, but the Trustees' r...

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