Wilmington Alliance and Cornerstone West CDC Launch New Microlending Platform in Delaware

Wilmington, DE: Wilmington Alliance and Cornerstone West CDC are announcing a new partnership with Kiva, the world’s first personal microlending website. Through a unique network of microlenders, and funding support from the National League of Cities and Discover Bank, Delaware’s first-ever Kiva Hub will serve entrepreneurs and business owners who do not have direct access to capital from traditional lenders.

Founded in 2005, Kiva is a pivotal first step in accessing capital, and it is one of the only small business loan providers that lend from $1,000 to $15,000. Since 2019, Kiva Hubs have expanded from two programs to over 40, helping applicants in the United States access more than 7,500 loans. In total, Kiva has loaned over $44 million to small businesses across 47 states. Through partnering with Community Development Financial Institutions (CDFIs), City Governments, Foundations, and Technical Assistance Providers, Kiva Hub programs offer affordable capital to entrepreneurs, providing critical financial assistance to thousands of financially excluded small business owners.

After submitting an online application, prospective candidates are reviewed and screened by a local Capital Access Manager. Kiva processes the information, and once an entrepreneur is approved, they enter a crowd-sourced funding phase that typically lasts 20-30 days, where they can raise up to $15,000 with no interest and no fee. Not only does this help the business, but it also enables local lenders to make direct loans, as little as $25, to entrepreneurs in their neighborhoods.

Wilmington Alliance and Cornerstone West CDC are partnering to bring Kiva Delaware to life. Cornerstone West CDC will assume responsibility for administering the Kiva borrower pipeline. Mary Easley will lead the new effort, serving as Kiva Delaware’s Capital Access Manager. Through this partnership, Wilmington Alliance and Cornerstone West will be able to better leverage small business ownership to reduce income inequality and provide greater financial security to residents in Wilmington and throughout the state.

“Our goal is to provide microlending to support entrepreneurs who seek capital – particularly businesses that have been underrepresented and early-stage entrepreneurs who often do not have “friends and family” or “bootstrap” funding to rely on.” So, we will fill the funding gap on the first rung of the capital ladder.” Renata Kowalczyk, CEO, Wilmington Alliance, Inc.

Sarah Lester, CEO of Cornerstone West CDC stated, "The new KIVA Delaware Hub is a collaborative model, and we look forward to also partnering with technical assistance providers, traditional lenders, CDFIs, local governments, and community-based entrepreneurship programs to introduce an additional much-needed resource to the suite of services currently available to small (micro) businesses throughout the State".

To learn more or to donate, visit www.wilmingtonalliance.org/kiva or contact Mary Easley at delaware@local.kiva.org.