PHOENIX — Some hope is on the horizon for small business owners who may not qualify for a traditional loan. A new partnership with the City of Phoenix, GoDaddy, Better Business Bureau Serving the Pacific Southwest and Kiva gives entrepreneurs another opportunity to access capital.
The Phoenix City Council recently approved the partnership, which Phoenix Mayor Kate Gallego says is an effort to help those still struggling due to the pandemic.
“This can be very helpful if you are starting out or an entrepreneur on your own,” Mayor Gallego said. “We do hope that this will particularly get to our smallest businesses. We know they have fewer resources than many others and we hope to be a hub for veteran owned businesses, minority, women-owned businesses here in Phoenix.”
Capital Access Manager for BBB Jose Anca says residents in Maricopa County can now apply for a 0% interest loan ranging from $1,000 to $15,000. He says unlike traditional banks, the application does not require a minimum credit score or years of cash flow documentation.
After you apply and your profile is good to go, Anca says you must earn the support from your community through crowdfunding. For example, you could be required to get 10 people to donate $25 each. Once you meet the requirement depending on the loan amount, your profile is then posted on Kiva’s international page.
“There are lending teams dedicated to just searching through it, seeing what business owners' stories speak out to them,” Anca said. “There’s lending teams for veteran owned businesses, there’s lending teams for all kinds of things. Musicians, coffee shops, whatever you can think of there’s probably a lending team for it on Kiva. So, these communities of individuals band together to make the economic dreams of a business owner or entrepreneur a reality.”
To learn more about the Phoenix Kiva Hub or to apply, click here.