City of Rochester
News Release
(Monday, August 22, 2016) – Mayor Lovely A. Warren announced the launch of Kiva Rochester, a new program that will help entrepreneurs in the city grow their businesses and create jobs. Kiva is the world’s largest nonprofit crowdfunded platform that helps business owners access capital, and now, with a local Kiva office and matching funds from the City, more entrepreneurs will be able to take advantage of the innovative model.
“The city of Rochester has always been known for its entrepreneurial spirit, and as our economy emerges, our residents have more interest than ever in starting their own business,” Mayor Warren said. “Kiva will help our residents become not employees, but employers, creating jobs, which will make our neighborhoods safer and more vibrant and lead to better educational opportunities.”
The announcement comes on the heels of World Entrepreneurship Day, and Kiva Rochester was launched in partnership with the Rochester-Area Community Foundation.
Kiva loans are fee-free and have a zero percent interest rate and can be for as little as $25 or as much as $10,000. The model allows citizens in Rochester to support local businesses by lending to Kiva entrepreneurs.
The initiative will particularly help underserved and low-income entrepreneurs, who lack access to traditional business loans.
Through the City’s partnership with the University of Rochester’s AmeriCorps VISTA Youth Year Fellowship, a full-time program coordinator will be embedded in the Department of Neighborhood and Business Development to assist community members throughout the entire Kiva lending process.
In addition, the REDCO board voted to authorize $100,000 to establish a matching loan fund for City of Rochester borrowers. This fund will match 1:1 every loan made to a City of Rochester business, for a total matching amount of up to $5,000 per loan.
Mayor Warren announced the launch of Kiva Rochester at the Coffee Connection’s Greenhouse Café on East Main Street.
The Coffee Connection is a chain of local coffee shops that employ and assist women in recovery. It is also a true Kiva success story.
When Joy Bergfalk started her first Coffee Connection location, she envisioned a socially-conscience business, which would employ women in recovery and help them take their first steps toward self-sufficiency. The business was successful and she sought to grow.
Working through Kiva's national platform, Joy secured $5,000 to purchase three new coffee roasters, which helped her open more locations, help more women and boost the business’ wholesale revenue.
Her loan was funded by 223 lenders. People in Sweden, Australia, the Netherlands, Taiwan, Montenegro, Germany, Switzerland, France, Scotland - and all across the U.S. – showed their interest and support in her mission by contributing to the loan.
“With Kiva Rochester, we will be able to see more success stories like Joy’s,” Mayor Warren said. “I look forward to working with our aspiring entrepreneurs, and watching their businesses grow – right here, in the city of Rochester.”
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News Media: For more information, contact Press Officer Jessica Alaimo at 428-7135.