News Release -- Kiva Rochester Levels Playing Field for Business Owners

City of Rochester 

News Release

 

View photos of Mayor Warren’s visits to A Gamer’s Nostalgia and M/Body here: cityofrochester.smugmug.com/News-and-Events/Tours/Kiva/i-GKSwXnh

 

(Wednesday, August 15, 2018) – In two years, the Kiva Rochester program has helped level the playing field in terms of helping minority- and women-owned business owners launch, grow and create jobs, according to data released today on the program’s progress. Kiva Rochester helps small business owners gain access to capital through zero-interest, crowdfunded microloans up to $10,000.

“In two years, we’ve helped almost 60 entrepreneurs pursue their passions, dreams and ambitions through Kiva Rochester,” Mayor Lovely Warren said. “Kiva Rochester builds livelihoods for business owners and in the process helps Rochester create jobs, safer and more vibrant neighborhoods and better educational opportunities. We owe a great deal of thanks to the program’s borrowers and lenders for making Kiva Rochester such an outstanding success.”

59 entrepreneurs have borrowed $300,000 through Kiva since 2016. The majority of Kiva business owners are women and minorities, and the average loan size is $5,000, with some loans as small as $25. 5,100 lenders have participated during that time span. Demographic breakdown:

•            37 loans (67%) were to African Americans; and

•            30 loans (51%)totaling $142,500, were to women;

•            5 loans (8%) were to Hispanic business owners.

•            18 loans totaling $62,000 were made to African American women

•            9 loans totaling $96,000 were made to African American men

•            2 loans totaling $15,000 were to Hispanic men

•            3 loans totaling $10,500 were to Hispanic women

Kiva loans help individuals who otherwise may not have qualified for traditional loans. Kiva Rochester borrowers have an average credit score of 572 and a median income of $30,000.

To build the program, Kiva Rochester staff has done extensive outreach throughout the community, hosting more than 120 informational and outreach events.

Kiva Rochester is administered through the Mayor’s Office of Innovation and Strategic Initiatives, which is tasked with finding new, data-driven solutions to the city’s most pressing challenges. One of those being that women and minorities are at a disadvantage when it came to getting traditional small business loans.

To mark the 2-year anniversary of the program, Mayor Warren toured two Kiva businesses this morning.

Christopher Williams owns A Gamer’s Nostalgia at 1100 University Ave., a video game arcade and lounge which is modeled after popular gaming rooms and internet cafes found around the world. There are a variety of video game console systems available to play and the business offers birthday parties, lock-ins, game viewing parties and provides a venue for the RIT Game Design program to test new games. A Kiva loan of $2,000 helped Williams purchase new equipment and expand into a new space.

Maureen (Molly) Flaherty owns M/Body, a fitness facility also on University Avenue. A $10,000 Kiva loan helped Flaherty purchase new equipment for gym space and classes for individuals with Parkinson’s disease.

For more information on Kiva Rochester visit www.cityofrochester.gov/Kiva/.

For more information about A Gamer’s Nostalgia, visit: www.kiva.org/lend/1539229.

For more information about M/Body visit: www.kiva.org/lend/1489520.

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News media: For more information contact Press Officer Jessica Alaimo at 428-7135.