Mayor Cory Booker Launches New Lending Site to Help Small Businesses In Newark
The launch of a new lending website, Kiva City Newark, has the potential to make a tremendously positive impact on those unemployment numbers. Started by Mayor Cory Booker of Newark, Kiva.org/Newark allows entrepreneurs to receive loans through the website to help jump start their small businesses, reports Broadway World.
Small businesses make up about 66 percent of all new jobs, Broadway World says, “If just one in three small businesses could hire one more person, the U.S. would be at full employment.” For this promising reason, Kiva City Newark raised more than $150,000 for small businesses on Monday’s launch day.
Visitors who wish to contribute to this cause can look through entrepreneur profiles and their business plans. If an aspiring business owner catches your eye, you can support him or her with a loan of $25 or more. For every dollar an entrepreneur borrows in New Jersey, the amount will be matched by the Rita Allen Foundation for up to a total of 50,000, Broadway World explains.
Known as crowdfunding, Kiva City Newark allows entrepreneurs can collect loans from supporters they could not otherwise receive because they are “too young, too small, or too innovative to receive loans from traditional lenders,” adds the site.
When an entrepreneur successfully pays back the loan, one can choose to redirect the repaid cash to another favored entrepreneur or one can withdraw the loan from the site.
Mayor Booker integrated Kiva City, The Intersect Fund, a microlender in New Jersey, and the Rita Allen Foundation, a company that invests in “transformative ideas” for this online program. Merging all three has birthed Kiva.org/Newark which “gives us a chance to support thriving local economies, communities and jobs,” said Premal Shah, president of Kiva.
Besides Newark, Kiva has planted its seeds in Los Angeles, Detroit, New Orleans, and Washington, D.C. Kiva says it has a 98.9 percent repayment rate.