Getting a Small Business Loan from Kiva.org

While it can be incredibly financially rewarding to operate your own in-home childcare or preschool, some individuals are interested in taking out a small business loan to help get started with some of the investments needed to open a program.

Setting up your in-home learning environment and making renovations to any outdoor space can add up.  Investments you make into quality materials pay off, but can also prohibit some people from starting as early as they may want.

Kiva.org connects entrepreneurs throughout the United States with 0% interest loans up to $10,000 to help start or grow businesses.  Regardless of your financial or business history, Kiva's mission is to expand financial access to entrepreneurs and small businesses who otherwise are not eligible for a business loan.

Loan FAQ:

1. You can apply for loans from $1 to $10,000.
2. Repayment period is up to 3 years.
3. There is zero interest charged.
4. The amount you need to repay each month is equal to the total amount of loan divided by the number of months for repayment.
• For example, if you apply for a $5,000 loan and want to repay in 3 years, then you owe $5,000 /  36 = $138.89 per month.
• If you apply for a $3,000 loan and want to repay it in 2 years, then you owe $3,000 / 24 = $125 per month in repayments.
5. There is no grace period for repayment so you must start making payments as soon as you borrow.
• Because there is no grace period, you should evaluate if you need to apply for more money than you need for a particular reason based on when you think you will have profits coming in.
• For example, assume you need $3,000 to purchase all of the equipment and materials to set up your learning environment in your home.  You want to purchase everything in January and think you may start your program in March, two months later.  You may not be full and making money until April or May, so assume you may need 4 extra months to repay your loan.  As such, if you would have taken a $3,000 loan for a 2 year repayment period, add 4 months at a rate of $125 per month, or $500 to what you would borrow.  By borrowing $3,500, you can afford to buy all of your materials and start paying your loan back immediately

Here are some other child care providers who raised money through Kiva. You can user their campaigns as inspiration. Please note that these are not Wonderschool teachers.

Delia, Little Angels Family Child Care - https://www.kiva.org/lend/1080937

Zhayda, Liss Childcare & Preschool - https://www.kiva.org/lend/1080795

Olivia, Beyond Our Dreams Child Care - https://www.kiva.org/lend/1079152