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City of San Leandro <br />Meeting Date: October 21, 2013 <br />Staff Report <br />Agenda Section:File Number:13-394 CONSENT CALENDAR <br />Agenda Number:8.I. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for a Resolution Approving an Application to Serve as a Trustee <br />for the Kiva Zip Micro-Lending Program <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council approve a resolution authorizing the City Manager to <br />transmit a Trustee Application to Kiva to identify and recommend small businesses in San <br />Leandro for Kiva Zip’s micro -lending program. <br />BACKGROUND <br />Dissolution of the Redevelopment Agency requires a new approach to business development <br />that seeks out innovative and alternate funding sources for business incentives that do not <br />rely solely on the General Fund. For example, the Downtown San Leandro Community Benefit <br />District (CBD) set up a financially sustainable way to fund maintenance, security and <br />marketing activities for properties in the downtown. Likewise, Kiva Zip provides the City’s <br />Office of Business Development another financial incentives tool to attract and support <br />businesses in San Leandro. <br />Analysis <br />Kiva Zip is an innovative pilot program launched by Kiva, the world’s first and largest <br />micro-lending website. Kiva, a non-profit organization based in San Francisco, became <br />famous for enabling anyone with an internet connection to lend as little as $25 to alleviate <br />poverty. Kiva Zip is not like the typical “crowdfunding” organizations such as Kickstarter, <br />GoFundMe or Crowdfunding.com where start-ups and entrepreneurs receive cash donations <br />for their business ideas. Kiva Zip provides 0% interest capital loans up to a maximum of <br />$10,000 directly to small-business borrowers. <br />The Kiva Zip lending model relies on a network of Trustees who facilitate the lending process <br />by sponsoring borrowers and working with them to keep up their repayment reputation. <br />Page 1 City of San Leandro Printed on 10/15/2013