Posting Language
Title
Authorize a contract for managing revolving funds for matching crowdfunded small business loans for Austin Economic Development with Kiva Microfunds, for an initial term of three years with up to four one-year extension options in an amount not to exceed $432,000. Funding: $432,000 is available in the Operating Budget of Austin Economic Development.
Body
Lead Department
Austin Financial Services.
Client Department(s)
Austin Economic Development.
Fiscal Note
Funding in the amount of $432,000 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Economic Development.
Procurement Language:
Professional Service.
MBE/WBE:
Professional service contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established.
For More Information:
Direct questions regarding this Recommendation for Council Action to Austin Financial Services – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500.
Additional Backup Information:
Kiva Microfunds (Kiva) is a San Francisco-based 501(c)3 non-profit organization founded in 2005 with a mission to expand financial access to help underserved communities thrive utilizing a peer-to-peer lending model to offer loans up to $15,000 with 0% interest, zero fees, and no collateral required.
Peer-to-peer lending is a method of raising capital for a business that pools small dollar loans (as little as $25) from multiple individual lenders to form a larger loan up to $15,000. Kiva conducts a due diligence review, including a soft credit inquiry to verify application information; however, the score is not the determiner of final credit decision. Kiva does require applicants to successfully identify a minimum number of private lenders subject to the total loan request (typically friends, family, or customers) as part of its social underwriting process.
Since it...
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