Fiscal Note
The proposed resolution authorizes a $50,000 contract with the Wisconsin Women’s Businesses Initiative Corporation (WWBIC) to assist with administrative costs associated with launching the Kiva Madison Program. The 2019 Adopted Budget includes $50,000 within the Economic Development Division for costs associated with implementing the Kiva program.
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Authorizing the provision of $50,000 to launch Kiva Madison by supporting the staffing and administrative costs to create the Kiva Madison Lead Position, which will be based at the Wisconsin Women’s Businesses Initiative Corporation (WWBIC). Kiva Madison will provide zero interest loans that will help to make entrepreneurship more inclusive to women, people of color, immigrants, veterans, and lower income entrepreneurs and business owners.
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WHEREAS, in March of 2017 the Common Council adopted the Connect Madison Economic Development Strategy (RES-17-00207) and directed City Staff to move forward with implementation; and
WHEREAS, one of the five Strategy’s was to Support Businesses, Cultivate Entrepreneurship and Champion New Business Models. A Priority Project listed under this strategy is to become a Kiva City which would require an upfront investment to establish the program and ongoing work to promote and manage the process; and
WHEREAS, this would introduce the Kiva Program to Madison as a platform to crowd-fund small, zero percent rate loans of $500 to $10,000, providing early-stage funding to entrepreneurs with limited access to funding through private and public programs in the City of Madison; and
WHEREAS, Kiva is a non-profit based in San Francisco providing micro-loans to entrepreneurs around the world who need a small amount of capital to support their business. Capital is crowdfunded online from both a local and global community of lenders. The program offers $500-$10,000 loans, 0% interest, fixed monthly repayment terms up to 36 months and has a 90% funding success rate. The process does not require a formal credit score, collateral, tax returns, business plan or social security number; and
WHEREAS, small businesses identify capital as their most important need and Kiva provides affordable credit to underserved borrowers based on character, relationships reputation and the social impact of the business; and
WHEREAS, there is a disproportionally low representation of businesses of color in the local economy; and
WHEREAS, the Kiva Madison program will prioritize recruiting businesses that represent communities of color, low-income populations, immigrants, women entrepreneurs and other groups that face historical barriers to starting businesses; and
WHEREAS, City staff, WWBIC and Kiva partners will work with local banks, non-profits, community organizations and civic groups to improve opportunities for more Madison residents to start businesses. As noted in the Connect Madison Economic Development Strategy (RES-17-00207), enhancing opportunities for people to start successful businesses is a powerful force for upward mobility and financial independence for communities of color, immigrant communities and low-income populations; and
WHEREAS, the City of Madison’s 2019 Operating Budget authorizes $50,000 per year for the next three years to launch the Kiva Madison Program; and
WHEREAS, the City’s $50,000 investment will be matched by $200,000 in funds from private sector partners; and
NOW THEREFORE, BE IT RESOLVED, that the Mayor and the Common Council approve the authorizing to assist Wisconsin Women’s Businesses Initiative Corporation (WWBIC) in staffing a Kiva Madison Lead position for the designed service; and
BE IT FURTHER RESOLVED, that the Common Council authorizes the Mayor and the City Clerk to enter into a contract for up to $50,000 on behalf of the City with this organization, as required, to perform the desired service.
BE IT FINALLY RESOLVED that the Mayor and City Clerk are authorized to execute, deliver, accept and record any and all documents and take such other actions as shall be necessary or desirable to accomplish the purpose of this resolution in a form approved by the City Attorney.