Kiva Microloans for Beginning Farmers

Kiva microloans
Kiva Microloans as a Tool for Beginning Farmers to Expand Business Enterprises
Access to capital is one of the toughest hurdles a beginning farmer will overcome. Beginning producers frequently don’t have collateral to offer lenders. And it can be hard to build a good credit score as a farmhand or apprentice. New farms may also lack accurate income projections that are used by FSA to evaluate loan applications.
That’s why alternative means to accessing capital can be beneficial to beginning farmers and ranchers. Since 2005, the non-profit Kiva has been helping producers and businesses internationally by crowdfunding microloans that are $10,000 or less. The most astonishing thing about this capital is that it can be acquired with no interest. Borrowers can find out about their eligibility and get the process started at
Learn more about about Kiva microloans and how to participate on the NFU Beginning Farmer Column. You can also join the Beginning Farmer Forum for more on the conversation!
Kiva is an international nonprofit, founded in 2005 and based in San Francisco, with a mission to connect people through lending to alleviate poverty. We celebrate and support people looking to create a better future for themselves, their families and their communities.

Direct loans are an innovative and growing segment of Kiva’s loan portfolio. These loans are not administered by a Field Partner, which gives Kiva the ability to reach populations that even microlenders can’t or don’t serve. Direct loans are made through the digital payment system PayPal.

Direct loans were launched on Kiva in 2011 and are currently only available to borrowers in the U.S. as we continue to learn more about this model and the most effective ways to scale. Lenders should be aware that direct loans often involve a higher level of risk of default than those administered through Field Partners. The higher risk is due in part to less monitoring and followup for collection of repayments, as well as the nature of the businesses served. For example, many direct Kiva borrowers are startups that are in their first or second year of business.

Learn more about other resources for financing farm operations at

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