Capital One Financial, the McLean-based banking giant, is expanding its partnership with nonprofit Kiva to provide loans to small businesses.
Last week, the bank announced that it was setting aside $500,000 to match loans made through Kiva’s microlending Web platform. Once a small-business owner has raised half of the funds they need, Capital One will make up the other half.
The move comes less than two months after the opening of Kiva City D.C., an initiative funded in part by Capital One and the Latino Economic Development Center. The program has helped link nine area businesses to more than 1,000 lenders, many of whom lend $25 at a time.
“Being able to connect people to capital really has a ripple effect on the economy and job creation,” said Daniel Delehanty, senior director for community development banking at Capital One.
The bank is also partnering with Count Me In for Women’s Economic Independence, a New York City-based nonprofit, to help 150 female veteran small-business owners get their ventures off the ground. It plans to offer leadership training at its headquarters, as well as a six-month coaching program for participants.
Capital One, which has $312.9 billion in assets, had $200.9 billion in outstanding loans during the fourth quarter. Even so, Delehanty says the bank’s partnership with nonprofits help the institution reach — and lend to — segments of the population it might not otherwise serve.
“We want to work in partnership with organizations and nonprofits that ... can do community outreach in ways that financial institutions aren’t built to do,” he said.
The most recent pledge of $500,000 to Kiva will help provide funding for hundreds of small businesses, Delehanty said. Earlier in the year, Capital One provided $250,000 to the nonprofit — $150,000 for loan-matching (some of which is still available) and a $100,000 grant to cover D.C. operating costs.
“Small businesses are creating new jobs — and certainly that’s even more crucial now as the economy continues to improve,” Delehanty said.
As each business owner pays back their microloans — generally about $10,000 — the money will be lent out to new entrepreneurs.
“This [program] ties into the wide fabric of what we’ll all after: Creating jobs and adding to the broader economy,” Delehanty said.