Umpqua Bank Deploys $1 Million in Microloans to BIPOC and Women Entrepreneurs through Innovative Kiva Partnership

Rhea-AI Summary

Umpqua Bank, a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ), has successfully deployed $1 million in microloans to support nearly 200 BIPOC and women entrepreneurs across Oregon, Washington, California, and Idaho through its partnership with Kiva. This initiative, part of the Small Business Empowerment Program, was launched in April and aims to address funding gaps for underserved small business owners. The fund's structure allows it to replenish as loans are repaid, further extending its impact.

Positive

• Successfully deployed $1 million in microloans for BIPOC and women entrepreneurs.
• Supported nearly 200 entrepreneurs, enhancing access to funding.
• Loan fund replenishes as loans are repaid, multiplying the initial investment.

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• None.

 Umpqua's crowdfunding partnership with Kiva inspired more than 10,000 community members to help entrepreneurs in Oregon, Washington, California, and Idaho start or grow business

PORTLAND, Nov. 8, 2022 /PRNewswire/ -- Umpqua Bank, a subsidiary of Umpqua Holdings Corporation (NASDAQ: UMPQ), announced today that its innovative crowdfunding partnership with Kiva has reached the initial goal of deploying $1 million in microloans. Since April, the Umpqua Bank Loan Fund has supported nearly 200 BIPOC and women entrepreneurs, addressing a critical gap in access to funding for many small business owners.

Umpqua established its $1 million loan fund with Kiva earlier this year as part of its Small Business Empowerment Program to accelerate the ability of underserved entrepreneurs to access microloans offering 0% interest. Umpqua's loan fund matched contributions from thousands of individual funders 3:1 for eligible entrepreneurs in Oregon, Washington, California, and Idaho.

"Creative partnerships with organizations like Kiva are critical to expanding the funding ecosystem for small businesses so more entrepreneurs can access the capital and resources needed to succeed," said Eve Callahan, Umpqua's chief marketing communications officer. "In just a few months, our Umpqua Bank Loan Fund through Kiva has helped nearly 200 under-resourced entrepreneurs access early-stage capital that's so important in starting and growing a small business."

"We join the team at Umpqua in celebrating this incredible milestone, which we achieved far more quickly than we'd initially expected," said Tess Murphy, Director of Strategic Partnerships at Kiva. "It's innovative partnerships like these that enable Kiva to continue growing our impact, allowing us to reach even more entrepreneurs with critical access to funding. We're grateful to work with Umpqua to address the funding gaps for small business owners."

The Fund in Action

To date, 185 business owners have been supported through the fund, which matched loans crowdfunded by more than 10,200 people across the globe. The businesses supported by Umpqua-matched loans represent a range of sectors including the service industry, food, retail, health, agriculture, education, arts and entertainment, and more. The average loan amount across all borrowers so far has been $8,300. The Umpqua Bank Loan Fund replenishes as loans are repaid, multiplying the bank's initial $1 million commitment. 

Of the 185 businesses supported through the Umpqua Bank Loan Fund:

• 60% were directed to women business owners
• 42% were directed to Black and African American business owners
• 22% were directed to Latine and Hispanic business owners
• 32% have been in operation for three years or more
• 26% have been in operation for one year

Businesses supported by Umpqua and Kiva partnership

A representation of the businesses supported by the Umpqua Bank Loan Fund include:

• Sibeiho, based in Portland, OR, a Singaporean food startup co-founded by Holly Ong and Pat Lau
• In Focus Productions, based in Lakewood, WA, a Veteran and Black-owned photo and videography production company founded by Darwin Peters and Shartrice Peters
• Serenity Valley Flower Farm, based in Gig Harbor, WA, a black woman-owned and operated sustainable floral microfarm founded by Susanne Bell
• Blynd Essence, Inc, based in Fresno, CA, which provides affordable shared housing for individuals with mental illness and financial hardship, founded by Rizpah Bellard
• Umi Organic, based in Portland, OR, which produces delicious Japanese food products through organic farming methods, founded by Lola Milholland

How Kiva works

Through Kiva, anyone can help support and grow small businesses and promote local job creation by visiting Kiva.org and choosing an entrepreneur they want to support with a loan of $25 or more. Entrepreneurs apply directly to Kiva's U.S. site to fundraise on the platform and are connected to millions of Kiva lenders. It also enables local lenders to make direct loans to entrepreneurs in their neighborhoods. Small business loans crowdfunded through Kiva U.S. are offered at 0% interest with no fees and available to borrowers who may be rejected or underserved by traditional lenders.

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About Umpqua

Umpqua Bank, headquartered in Roseburg, Ore., is a subsidiary of Umpqua Holdings Corporation and operates across Oregon, Washington, California, Idaho, Nevada, Arizona, and Colorado. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the 17th consecutive year. In addition to its retail banking presence, Umpqua Bank also owns Financial Pacific Leasing, Inc., a nationally recognized commercial finance company that provides equipment leases to businesses.

About Kiva

Kiva is a global nonprofit, founded in 2005, with a mission to expand financial access and help underserved communities thrive. Kiva unlocks capital for borrowers through crowdfunded loans supported by individuals around the world. With as little as $25, you can support entrepreneurs and small business owners in communities across the country and globe with critical access to funding. Over two million people have invested $1.7 billion in real dreams and real opportunity, spanning more than 70 countries and 4.2 million borrowers.

 

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SOURCE Umpqua Holdings Corporation

FAQ

How much funding has Umpqua Bank deployed through the Kiva partnership?

Umpqua Bank has deployed $1 million in microloans through its partnership with Kiva.

What is the purpose of Umpqua's loan fund with Kiva?

The loan fund aims to support BIPOC and women entrepreneurs by providing access to microloans.

How many entrepreneurs have benefited from Umpqua's loan fund?

Nearly 200 entrepreneurs have benefited from Umpqua's loan fund.

What percentage of loans supported women entrepreneurs?

60% of the loans were directed to women business owners.

What sectors are covered by the businesses supported by Umpqua's loan fund?

The supported businesses span several sectors, including service, food, retail, health, agriculture, and education.