Title
Sponsorship to Launch Better Business Bureau Kiva Hub (Ordinance S-47281)
Description
Request to authorize the City Manager, or his designee, to pay a Premiere Sponsorship fee to the Better Business Bureau (BBB) to manage the Kiva Hub for Fiscal Years 2020-21 through 2022-23 in the amount of $25,000 annually, for a total not to exceed $75,000. Further request the City Controller to disburse all funds associated with this item. Funding is available in the Community and Economic Development Department's budget.
Report
Summary
The nonprofit Phoenix local chapter of the BBB is the state’s largest trade association with more than 12,000 accredited businesses and 3,300 members in Phoenix proper. While traditionally known as a place to connect consumers and businesses along with handling complaints, the BBB has expanded into serving the needs of small businesses as can be seen with the 2019 opening of their coworking space at 1020 E. Missouri Ave. in Phoenix called, “ignite sparked by BBB.” Additionally, in partnership with GoDaddy.com, the BBB launched "Empower by GoDaddy" which is an incubator, accelerator, and general small business development initiative that provides intensive training to entrepreneurs seeking to scale their businesses through local partnerships and in-person and online cohorts.
The BBB is continuing to assist small businesses by partnering with Kiva U.S. and becoming a Kiva Hub. Kiva U.S. is a crowdfunding platform focused on women, minorities and those that do not qualify for traditional credit by offering zero percent interest loans between $1,000 and $15,000. Since 2011, Kiva U.S. has facilitated the crowdfunding of $39 million from more than 731,000 lenders to approximately 7,000 borrowers. As the Hub, the BBB will employ and house the Capital Access Manager (CAM), a staff member internal to the Kiva Hub who is trained on how to share this loan opportunity with entrepreneurs and local stakeholders, as well as how to support clients on the back end of the Kiva process. Additionally, the role of the CAM is to market the program, vet and approve applications and grant access for the business’s inclusion on their crowdfunding platform.
If approved, the City's Premiere Partner Sponsorship funds will be used to pay for the annual licensing fee associated with hosting and launching the Phoenix Kiva Hub in addition to seed funding the inaugural year of programming and technical support for under-served entrepreneurs. Additionally, the City of Phoenix will be recognized as the title program partner and trustee in all branded materials, digital products and media mentions alongside the BBB and GoDaddy, another sponsor of the BBB Kiva Hub. The City's Premiere Partner Sponsorship will not be used for microlending nor pay the CAM's salary.
The BBB will provide a biannual report to City staff that will include, but not limited to, the following items:
- Demographic data of Kiva loan portfolio
- Repayment rate
- Average credit score of borrowers
- Total number of loans
- Borrower related data by zip code
- Success stories
- Marketing: Impact (clicks, throughput, views, etc.) and traffic to Kiva website landing page
- Events, Webinars, event and networking opportunity tracking
Financial Impact
BBB's Premiere Partner Sponsorship fees are $25,000 annually. The three-year, cumulative amount for Fiscal Years 2020-21 through 2022-23 will not exceed $75,000. Funding is available in the Community and Economic Development Department's budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Jeff Barton and the Community and Economic Development Department.