By making microloans to small businesses, NewBoCo’s Kiva Iowa changes lives

Amy Dutton of Cedar Falls became a banker, of sorts, in 2011.

That’s when she discovered Kiva, a nonprofit “microlending” online website that allows individuals to loan a little bit of money to small entrepreneurs around the world, ones with limited access to capital.

Its motto: “Make a loan. Change a life.”

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“I've always been interested in finding ways to help others be successful, so the idea of using just a tiny amount of my disposable income to help others was appealing,” says Dutton, 54, regional director of the Small Business Development Center at the University of Northern Iowa.

Since then, she’s made 38 mini-loans to entrepreneurs in 21 countries. She’s only had one loan default.

Dan Tuuri of Marion made his first Kiva loan in January 2013 to Ibrahim, a mechanic in Kenya, who wanted to buy tools and open his own garage.

“I loved the idea of community-sourced microlending,” say Tuuri, 44, a corporate trainer at Involta in Cedar Rapids.

“When I launched my business (at age 20), I was lucky that I could rely on my parents for support,” he says. “If I had an order come through those first few months, I could put it on their credit cards and then pay the bill a month later. … Not every entrepreneur has that.”

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And since 2021, Dutton and Tuuri have been able to loan money to Iowans who want to start or expand a small business. That’s when NewBoCo in Cedar Rapids started managing Kiva Iowa.

Since then, $429,500 has been loaned to 68 small entrepreneurs through Kiva Iowa.

Globally, Kiva has 2.1 million lenders and has handled $2 billion in loans since 2005. Borrowers have a 95 percent chance of securing the financing they seek, the nonprofit says.

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Anyone can become a Kiva lender, providing loans for as little as $25. You fill out a lender account, read people’s profiles, choose a borrower, OK a loan through your credit card and wait to be repaid.

Dutton likens Kiva to a “revolving loan fund.”

“That is the magic of the program,” she says. “Since my enrollment as a donor, I have only injected about $250 to $300 in donations. I make a loan for $25, and it’s repaid, which brings my lending account balance up. When it reaches $25, I make another loan.

“Knowing that I can come together with others around the globe to help someone else reach their goals or have a safer and more secure future is extremely rewarding.”

Tuuri feels the same.

Over the years, he said, some of the entrepreneurs he has helped provide their lenders with frequent updates, letting lenders “know how their dollars were put to good use. More often, there is an update or two, and then the loan enters repayment.”

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‘Powerful’

Kaitlin Byers, capital access manager for Kiva Iowa at NewBoCo, says the program is “one of the most powerful and sustainable ways to create economic and social good.”

Kiva loans are made with zero interest and zero fees. A loan application is reviewed by the Kiva Iowa and U.S. Kiva teams, ensuring borrowers are qualified, dedicated to starting and growing their business and able to repay a small loan.

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Kiva Iowa, Byers says, “supports local solutions and creates a partnership of mutual dignity between lender and borrower. Whether you lend to friends in your community, or people halfway around the world, or both, Kiva creates the opportunity to play a special part in someone else’s story.”

“Whatever your role, being a Kivan means being part of something bigger … creating a world where financial inclusion is in our hands — all our hands.”

Information about becoming a Kiva Iowa lender or borrower can be found at https://newbo.co/kiva/.

Comments: mary.sharp@thegazette.com