Mona, a social venture focused on aiding underserved entrepreneurs, along with the University of Chicago’s Polsky Center for Entrepreneurship and Innovation, has provided essential financial support to 23 local business owners through zero-interest loans totaling $200,000 from Kiva.
This collaboration with Kiva, a well-known global microloan platform, primarily benefits businesses located in the South Side of Chicago.
The loans offered, which can reach up to $15,000, come with no fees, making them an attractive option for small business owners in need of capital.
Mona’s website continues to accept applications from interested entrepreneurs.
Among the beneficiaries of this initiative are Ms. P’s Gluten Free, a healthy snack brand; Ecodunia, which produces bags and accessories sourced from Kenya; and Ilava, a clothing manufacturer based in Tanzania.
Mona employs a unique model that connects underprivileged small business owners to vital funding through community lenders, and various corporate, philanthropic, and government grants and loans, with its partnership with Kiva being just one avenue for financial assistance.
Business owners apply via a straightforward common application found on Mona’s website, where the staff provides personalized assistance to identify the most appropriate financing options available. While any business can seek coaching from Mona, the initiative focuses primarily on assisting under-banked entrepreneurs, including refugees and immigrants.
According to Mona co-founder Andrew Leon Hanna, who is also an adjunct professor at the University of Chicago Booth School of Business, approximately 80% of the entrepreneurs Mona has funded stated they would not have secured funding elsewhere, and around 50% indicated they might have been forced to close their businesses without this financial support.
Hanna attributes these challenges to a lack of awareness, trust barriers, and a general shortage of resources available for underserved entrepreneurs.
Mona began its Chicago initiative in partnership with Kiva and the Polsky Center in May 2024, having already collaborated with Kiva to distribute over $1 million in loans across the United States since winter 2020.
In Chicago, the Polsky Center has brought attention to Mona’s work with Kiva within its network of small business clients. Notably, Ms. P’s Gluten Free had previously benefitted from a Polsky e-commerce program.
After submitting an online application, candidates are assessed by Mona’s team, which comprises five staff members including Hanna and co-founder Anny Dow. They assist in refining loan proposals and business summaries before posting the applicants’ profiles on Kiva’s platform.
Mona and Polsky work to promote these local entrepreneurs to their networks, enabling a crowd-sourced approach to financing that allows anyone to contribute.
Hanna reported that the repayment rate for Kiva borrowers supported by Mona in Chicago stands at approximately 89%.
Access to capital is crucial for small enterprises, as shown by Ms. P’s Gluten Free. Founder Lisa Marsh utilized her $10,500 Kiva loan, supported by Mona, to enhance her company’s online presence by upgrading her website, transitioning to the Shopify e-commerce platform, running advertising campaigns, and collaborating with a marketing firm. She also used the funds for purchasing ingredients, compensating staff, and covering commercial kitchen expenses.
Having primarily relied on grants in the past, Marsh noted that prior loans were often encumbered by lengthy funding processes and substantial paperwork that included interest rates far above zero.
Conventional loan applications, as she experienced, often demand revenue projections, collateral, and can involve extensive waiting periods.
In contrast, Ecodunia was granted a $7,000 loan in October 2024, which provided 36 months for repayment. This financial boost enabled the company to add a second booth to local artisan festivals, where it markets its Kenyan-made products.
Founder Cera Muchiri, who grew up in a Nairobi slum and started Ecodunia to help alleviate poverty, faced many hurdles in accessing traditional loans due to restrictive requirements.
Muchiri shared how complicated the process can be, emphasizing that conventional business loans are often inaccessible, requiring significant revenue and profit to qualify.
“Mona’s application felt thorough and rigorous, but not a burden. And as an interest-free and fee-free loan, it means that more money goes back to growing the business and towards the communities I am serving,” she said.
Ilava, specializing in Tanzanian clothing, received a $12,000 loan in 2024 that was put to immediate use in production, inventory acquisition, equipment purchases, and marketing efforts, including hiring a social media manager. The funds were also instrumental in the launch of its MITC Studio retail space in Kenwood, alongside Tabby’s Closets in August 2024.
Co-owner Rahel Mwitula Williams appreciated that Mona did not treat her business as just another small enterprise, acknowledging the significant social impact of their work and understanding that her primary goal extended beyond profit-making.
While Mona-supported Kiva loans provide vital boosts to local businesses, challenges persist.
Marsh of Ms. P’s Gluten Free, for instance, is currently grappling with a 30% surge in ingredient prices due to tariffs, forcing the company to make difficult decisions about certain supplies, such as recyclable packaging sourced from China.
“Business is very challenging currently,” she remarked, echoing the sentiment of many small entrepreneurs navigating a complex financial landscape.
image source from：chicago
