Turo, the car-sharing platform, has partnered with Kiva to provide zero-interest loans to individuals from Black communities and other historically disadvantaged groups, enabling them to purchase vehicles for use on the Turo marketplace. This $1 million initiative is designed to help close the wealth gap within the United States.

The program, known as the Turo Seed Initiative, allows qualifying participants to secure funding of up to $15,000 through a combination of crowdfunding and a matching contribution from Turo. To access funds via Kiva, applicants must demonstrate a business purpose for the loan, specifically utilizing the capital for car sharing through Turo. Individuals can initially raise up to $7,500 on Kiva, which Turo will then match with an additional $7,500, facilitating vehicle acquisition and subsequent listing on the Turo platform.

According to Turo CEO Andre Haddad, speaking with TechCrunch, this initiative aims to lower barriers to entry for those lacking traditional assets, a strong credit history, or existing vehicle ownership. “Individuals can borrow the funds and are only required to repay the principal amount,” Haddad explained.

Turo will also provide support to hosts throughout the program to maximize their success in the car-sharing environment. Repayment terms include a one-month deferral period, followed by a 42-month repayment schedule.

To ensure viability and sufficient demand, the program is currently limited to Turo’s 15 largest markets, including cities like San Francisco, Atlanta, Boston, and Houston. Hosts on the platform typically generate approximately $600 in monthly income by sharing their vehicles for around 11 days each month. Furthermore, hosts retain the option to utilize their vehicles for ride-sharing services such as Uber or Lyft, or for delivery platforms like DoorDash and Grubhub.

Haddad expressed strong confidence in the potential for profitability within the program.

To date, Turo has secured $467.4 million in funding and operates in a competitive landscape alongside companies like Getaround, Car2Go, and ZipCar. The company reported a 17% increase in year-over-year revenue in September and anticipates a 20% year-over-year growth rate for October. In September, Getaround completed a $140 million Series E funding round, bringing its total funding to $600 million, and reported that its global revenue had more than doubled compared to pre-pandemic levels.