March 2, 2011

SEDA currently has $9,097 in loans on Kiva currently in arrears, out of a total outstanding portfolio of $134,787. As a result, its delinquency rate as expressed on the Kiva website is currently 6.75%.

In late February 2011, SEDA sent $61,804 in funds collected on their Kiva loans. Once this payment has been processed and distributed to Kiva lenders, SEDA's delinquency rate as expressed on the Kiva website should fall from its current level.

We will keep this page updated with further updates as information becomes available.

March 1, 2011

The Center of Small Enterprise Development Assistance (SEDA) has been a longstanding partner of Kiva's for over three years, successfully paying back $703,350 in loans since the partnership began in October of 2007.

This partner update provides information on several actions Kiva has taken over the last few months, with respect to Kiva loans made through SEDA.

Client Waiver and Consent

Kiva asks that all borrowers whose loans are posted on the Kiva website sign a client waiver and consent, indicating that they are aware that their photo and story will be published on the Kiva website. While signing the waivers, loan officers are expected to explain to borrowers why their picture is being taken and how their story will be shared. Client waiver and consents help protect clients and help make sure that they are comfortable with their information being shared and the manner in which it will be presented to third parties.

In October of last year, Kiva visited SEDA and discovered that they were not consistently using a client waiver and consent with their borrowers. As a result, SEDA temporarily stopped posting loans on the website while Kiva's team worked with SEDA to consistently get signed client waiver and consents from their borrowers.

Risk Rating Migration

During the same visit, Kiva conducted on-site monitoring at SEDA in order to re-assess the level of risk posed by this institution as part of an ongoing effort to fully migrate risk ratings to our new risk rating system (which is described in greater detail at http://www.kiva.org/updates/kiva/2010/09/01/announcing-upcoming-update-to-kivas.html). During this visit our analysts were able to gather updated operational and financial information about the institution, as well as meet with key members of the staff.

The information gathered during this visit led us to decrease SEDA's risk rating from 4 to 2 stars. The analysts found that SEDA’s risk variables, reviewed in the new risk rating model, were most representative of a 2-Star rating. SEDA was informed of our analysts’ findings and their corresponding decline in rating.

Fundraising

After agreeing to use client waiver and consents with their borrowers on a consistent basis, SEDA began posting loans on the Kiva website again in January. This fundraising was subject to several conditions, including the consistent usage of client waiver and consents, and the regular sending of both information and repayments.

In February of 2011, SEDA sent $33,358.85 in funds collected on their Kiva loans. After this payment was processed, SEDA had $619 in loans on Kiva in arrears out of a total outstanding portfolio of $134,821. Its delinquency rate as expressed on the Kiva website went down to 0.46%.

We will keep this page updated with further updates as information becomes available.