COLUMBUS, OH (February 23, 2016)—The Columbus Foundation’s Governing Committee recently approved two grants totaling $75,000 from the Fund for Financial Innovation (FFI) to support efforts to increase small business development in central Ohio. The Foundation’s Fund for Financial Innovation was established in 2010 to support nonprofit organizations and projects that promote social enterprise collaborations, affiliations, and mergers.
“There are many forward-thinking community partners in Columbus actively looking for ways to increase sustainability and grow business opportunities through smart, strategic means,” said Douglas F. Kridler, president and CEO of The Columbus Foundation. “These grants are made possible thanks to Columbus Foundation donors who provided funds to address emerging opportunities—such as small business development—that will strengthen our community.”
Kiva Microfunds received a $25,000 grant to support the launch of Kiva Columbus, which will bring access to start-up capital to entrepreneurial low-income residents who want to start a small business. Kiva, a leader in the microenterprise crowd funding, launched Kiva Zip, which uses a direct peer-to-peer lending model to provide 0 percent interest loans to small businesses that face significant barriers in accessing capital. Community partners involved in providing funding to launch Kiva Columbus in 2016 are Access Ventures, City of Columbus, and United Way of Central Ohio. Once launched, Kiva Columbus expects to make loans to 200 entrepreneurs over three years at an average of $6,000 per loan. To date, 12 Kiva Cities have launched in the United States.
"This partnership enables Kiva to bring 0 percent interest crowdfunded loans to Columbus small business owners who are financially excluded and socially impactful," said Premal Shah, Kiva.org co-founder and president. "The role of small business entrepreneurship in local economies is critical in creating new jobs and revitalizing neighborhoods. However, they are too often denied loans because their credit history may be too short, their business too young, or their ideas appear too risky. They simply lack a small amount of capital to start or expand."
SEA Change—or Social Enterprise Accelerator Change received a $50,000 grant to establish the Sea Change Fund of The Columbus Foundation, which will support awards for the program as well as other social enterprise efforts. Sea Change provides social entrepreneurs with coaching, capital, and connections to transform big ideas into social enterprises that improve communities. SEA Change is a program of Business of Good Foundation (BoG), which serves economically and socially disadvantaged people through hands-on capacity building efforts. SEA Change will enroll eight to twelve social enterprise entrepreneurs who will learn business fundamentals, acceleration strategies, and participate in a Showcase Pitch Event. Partners in the local effort are the Tony R. Wells Foundation, IDG Energy, the Economic and Community Development Institute, Center for Social Enterprise Development, and Cause Impact, among others.
About The Columbus Foundation
The Columbus Foundation is the trusted philanthropic advisor® to 2,400 individuals, families, and businesses who have created charitable funds and planned gifts to make a difference in the lives of others through the most effective philanthropy possible. Serving the region for more than 70 years, The Columbus Foundation is the seventh largest community foundation in the United States. The Foundation’s online marketplace, PowerPhilanthropy,® makes giving mobile, easy, and smart. For more information, visit columbusfoundation.org or call 614/251-4000.