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posted on October 1, 2020

Thanks for your interest in the Turo Seed Initiative. You can read more about it here, and read on for some of the nitty-gritty details of crowdfunding on Kiva and becoming a successful Seed Host.

How does the process work?

The program has been curated to provide the right tools for prospective borrowers to become successful entrepreneurs. Turo has created a hands-on program to walk each applicant through the Kiva process to become a Borrower. 

Once you fill out the online form on Turo, you will be emailed with a decision on whether or not you’re a good fit for the program. If you qualify, you will receive an email with more details on next steps, including a link to set up one-on-one conversation with a Turo Account Executive. The Turo Account Executive will go over best practices for sharing your car on Turo, how to have a successful profile on Kiva, and application guidance. From there, applicants will apply for the loan through Kiva and set up their LLC.

Why do I need a limited liability company (LLC)?

Kiva’s US loans are meant for business uses, not personal uses. It’s required for a car sharing business to have an LLC to apply on Kiva so that it’s clear the loan is for business use.

Do I need to list the car on Turo?

Yes, in order to be eligible for the Turo Seed Initiative, you must list the vehicle on Turo so you can begin making money with the car!

How long will I have to repay the loan?

After your loan gets disbursed into your bank account, Borrowers have a one-month grace period before loan repayments begin. In total, Borrowers have three and a half years (42 months) to repay the Kiva loan after the grace period ends.

What’s the maximum loan amount?

Turo and Kiva have partnered to offer a max loan of up to $15,000, and Turo will match all money crowdfunded up to $7,500 dollar for dollar up to $15,000.

How does the money for the loan get to each Borrower?

The Kiva crowdfunding platform exclusively uses Paypal to get Borrowers the money that they successfully crowdfunded. To learn more about how to create a Paypal account, click here

What happens if a loan doesn’t fully fund on Kiva?

Loans on Kiva have 45 days to successfully fundraise. For the Turo Seed Initiative, if the loan is not funded in full within the fundraising period, the loan will expire and any funds raised will be returned to lenders’ Kiva accounts. 

However, before this happens, Kiva will work with Borrowers to provide guidance on how to reach out to networks and encourage new lenders. We want to help you succeed on Kiva and will offer additional guidance on how to create positive impact. 

What happens if I can’t repay the loan?

Turo understands that starting a new small business can be difficult and wants to prepare all Borrowers for success. However, we understand that there’s a lot of uncertainty when starting a business and loan repayments can fall behind. If a Borrower is behind on paying back a loan, Kiva will work with the Seed Host to work on a payment plan below the monthly commitment. 

Borrowers can additionally email the Turo team at seedinitiative@turo.com for additional support. Our team can connect you with a Turo Account Executive for a follow-up conversation and next steps. 

In the case that Borrowers simply can’t repay their loan and the loan ends in default, Kiva will notify all contributing lenders by email and these lenders can consider the remaining amount outstanding as a loss. 

Have more questions? Check out Kiva’s FAQs to learn more about its platform.