“It was quite difficult, managing my time for work as well as responsibilities as a Mom. So I always dreamt of having a business; my dream was to have a business focused on something from Mexico. I wanted to show other cultures the delicious taste that we have in our culture, back in Mexico.”
Since the fall of 2021, María Elena has been the proud owner of Paleta Bar Mesa, a local shop that offers an assortment of high-quality and delicious artisanal popsicles (“paletas”). Customers may build their own paleta, choosing from three types of chocolates and nearly twenty different toppings; or they can select from a variety of natural fruit cups, which can be customized with tajín and chamoy, chocolate or cream. For those seeking an authentic Mexican flavor, “elote”, or fresh corn prepared in the traditional style, is also available.
María Elena smiles as she describes the selection and how, through Paleta Bar Mesa, she is able to do what she aspired to do from the start: connect her local community with a taste (literally, in this case) of her beloved homeland of Mexico.
But to make this dream a reality, María Elena first needed capital, which proved challenging to come by given her identity as an immigrant woman. The systemic economic inequality that persists in the U.S. is evident in — amongst other areas — the small business lending landscape. A recent study from the University of Washington’s Consulting and Business Development Center confirms these significant inequities, highlighting that BIPOC- and women-owned businesses face higher interest rates and stricter loan requirements than their White and male counterparts, even when financial risk factors are the same. This was the reality for María Elena, who was turned away from several traditional lenders.
“When I told them what I needed, they said, ‘Sorry, we can’t do that.’ So [navigating the financing landscape] was challenging.”
Community development organizations help level the playing field
María Elena remembers when she first learned about Kiva — it was through the Retail, Arts, Innovation, and Livability Community Development Corporation (RAIL CDC), a Kiva U.S. Trustee based in Mesa, Arizona, where she currently lives.
“RAIL has always supported me here in my business. They were the ones who guided me and oriented me; they made me aware of Kiva.”
Kiva U.S. is committed to increasing access to capital to those who are systemically marginalized, and this commitment is strengthened through mission-aligned partnerships with Hubs and Trustees across the country — like RAIL CDC, these are local organizations that foster financial inclusion in their communities.
A place-based community development corporation, RAIL CDC offers expert-led one-on-one technical assistance support sessions for entrepreneurs who are looking to start or grow a business. RAIL sees locally-owned business — from retail to industrial and start-ups to decades-old institutions — as being at the core of job growth, stability, and wealth generation in the community; a perception which resonates with Kiva U.S. and is in line with our work to fill the gap in the financial market, giving underestimated entrepreneurs fair and equitable access to the financial resources they need to thrive.
“The business support, the education, the capacity-building — it was all really, really important for getting started.”
María Elena reflects on the timeline of her business acquisition and startup, and notes with gratitude that she was introduced to RAIL CDC and Kiva at just the right time. A few years before, she endured domestic abuse in a relationship. Determined to protect her four daughters and herself, María Elena moved her family to Arizona with the support of Enlace Comunitario, an organization focused on decreasing gender inequity and intimate partner violence in the Latinx immigrant community in Central New Mexico.
“This painful chapter in my life did not defeat me; on the contrary, it motivated me to fight harder for the well-being of my family and to achieve my dream of being an entrepreneur.”
Additional challenges presented themselves. María Elena shares that a lack of resources prompted her to accept an investment offer from someone to become a co-owner of her business; that individual then refused to share ownership properly and withheld accounting information. Seeking help, she brought in her daughter, not knowing that more conflicts of interest would follow. Her daughter and the co-owner forced María Elena out, using the sale of her house to buy the co-owner's share. Despite ongoing disputes with her daughter, she paid her a lump sum to leave, taking control of the business again but with depleted funds. Undeterred, she invested her last $2,000 to keep the business afloat during the tough winter months.
“By the start of 2023, I barely had $1,000 in the business account. There were times when I didn't even have enough money to cover expenses. But I remained determined to keep going and find a way to turn things around.”
During those early months of managing the business independently, she leaned on RAIL, to which she credits much of her personal and professional growth over the years. “The business support, the education, the capacity-building — it was all really, really important for getting started,” she says.
“I didn’t know much about how to open a business, how to monitor it, what the requirements were, what licenses I needed. This was a challenge, but I was able to accomplish it — largely thanks to the help of RAIL with budgeting and financial planning and their workshops, where I learned about how to pursue this, how to navigate potential risk, and what concrete steps I needed to take.”
A Kiva loan, a personalized customer experience, and aspirations for the future
María Elena received her $5,000 Kiva loan in September 2024, and used the funds to hire her first employee. Having this help has been key, she says. María Elena is now able to step away and attend local events where she further promotes her business, while her employee stays at the shop. By growing her team, she is also able to provide an even better customer experience, which is deeply important to her. Prior to owning Paleta Bar Mesa, María Elena worked for nearly 13 years in cafeteria services as well as other customer service-oriented roles. Today, she channels her skills and passion into her own business. And that’s what she loves about what she gets to do.
“It’s the interactions with the people, the customers. The people that come to the store, they get excited, they learn about my culture. The expression they make when one shows them how we make these paletas in Mexico.”
María Elena also takes pride in decorating the space, creating an inviting and familiar atmosphere where the community can gather and enjoy the delicious treats.
“The customers come and they feel as if they’re at home. They’ve said that to me: ‘When I come here, I forget my worries, I feel at home. I don’t want to leave!’ So that’s what I enjoy the most – providing this space for people, watching them appreciate it, and seeing them leave feeling satisfied. I love this.”
She feels grateful to those who supported her and is committed to paying it forward—whether through promoting resources like Kiva, mentoring entrepreneurs in her community, or simply continuing to invest in her own professional development so that she can expand and improve her business.
“Since the moment I learned about Kiva, even before submitting the application, I started talking to others who I know who also have businesses, who are in the startup stage or first years of running those businesses. I started telling them about Kiva and about the benefits of this loan for one’s business, especially the fact that it’s zero percent interest.”
María Elena emphasizes that the character-based, no collateral, no-minimum-credit-score, no-interest Kiva loan contributed significantly to her business’s success, and she hopes that her story and her drive serve as inspiration for aspiring entrepreneurs and small business owners. She encourages them not only to take the leap, but also to embrace support from others, including herself:
“I think, if you need guidance, make the decision, and accept the help. And if you’re not able to fill out the [loan] application, look for someone who can walk you through it. Organizations like RAIL exist to help. Now that I’ve gone through the process myself, I also want to be a resource for those who might not know how to navigate it.”
“Despite the challenges I have faced, my dedication and love for my business are reflected in every detail, from the selection of ingredients to the personalized attention to each customer. Every day I feel so grateful to be able to do what I do.”
At Kiva, we believe that everyone deserves the opportunity to pursue their dreams and improve their livelihoods. Kiva loans help borrowers build their financial stability, reduce their stress, and better manage their finances — learn more about the impact of Kiva loans here.
Partner with us as we work to address financial inclusion for marginalized communities in the United States — reach out to us here: Hubs, Trustees.
Stay updated with Kiva U.S. news and borrower stories in our LinkedIn newsletter, Underestimated Entrepreneurs.
