Covid-19 Emergency Response

PES LATAM, Ashoka, Bridge for Billions, LeFil Consulting, New Ventures, VC4A, and the SDC, are offering the following support to entrepreneurs needing emergency support in the face of COVID-19.

This program will be implemented by Kaya Impacto, Roots of Impact, Viwala, and Open Road.

OBJECTIVE

To provide financial support to PES LATAM entrepreneurs experiencing unprecedented challenges in the face of COVID-19.

SCOPE OF SUPPORT

Your venture is invited to apply for the following type of support depending on your specific needs:

•  Impact-Linked Emergency Loans: Between USD 85,000 and 350,000

Loans with up to 3 years duration, low-interest rates, and partial loan forgiveness (by achieving and demonstrating impact performance). Access to the loan, if your proposal is prioritized, comes with extensive technical assistance to help you prepare for and negotiate the investment deal.

More information about Impact-Linked Loans can be found HERE.

ELIGIBILITY AND SELECTION CRITERIA

Applicants must be ventures who have been through or are currently part of the ‘Promoting Social Entrepreneurship in Latin America and the Caribbean’ program, including Ashoka fellows and the i3 LATAM acceleration program.

Your proposal, to be eligible, should aim for one or more of the following objectives:

1. Greatly improve the resilience of your venture in the short- to mid-term, against the consequences of the COVID-19 crisis.
2. Preserve or extend the social mission of your venture during the COVID-19 and its aftermath
3. Diversify into COVID-19-related opportunities (e.g. launch new business or activities, but these must have a strong impact-focus such as serving low-income populations)
4. Help local low-income population mitigate the effects of COVID-19 and its aftermath

The following criteria will be used to evaluate applications:

• Impact of proposal both on the venture and on the populations it serves: Would the support provided help the venture in significant ways, notably in its mission to offer essential goods and services to low-income populations
• Additionality of support, i.e. limited access to other sources of financing
• Viability: ability and likelihood to survive the current crisis and scale both business model and impact
• Creditworthiness: ability to payback the loan

WHAT TO EXPECT

 #1: Application

Fill out the application form, along with relevant documentation.

#2: Preliminary Screening

Our panel of experts will evaluate your application against our eligibility criteria.

#3: Interview

We will review your current situation together and discuss any clarifications depending on the amount of
support applied for.

#4: Final evaluation

Based on the information provided, eligibility criteria, and the interviews conducted, a final decision will be made by our panel regarding the eligibility for the loan.

#5: Impact-Linked Emergency Loan track

The entrepreneurs pre-selected for Impact-Linked Emergency Loans will be enrolled in a one-on-one capital advisory and strategic planning consultancy program led by Kaya Impacto, including scenario planning, financial modeling, impact measurement, investor material preparation, term-sheet development, and negotiation support, in addition to general advisory services. The aim is to prepare the venture for investment and support it during negotiations. The incentive scheme leading to partly loan forgiveness in case of achieving pre-agreed impact performance will be structured by Roots of Impact in close collaboration with the entrepreneurs as well as Kaya Impacto.

DEADLINE

Applications should be received by the 30th of April at the latest.

INFORMATION

If you have any questions or need additional information, please get in touch with Diego Lozano: dlozano@kayaimpacto.com