Mfa week 3 presentation combined

International Rescue CommitteeCenter for Financial Opportunity

9,900,000 Refugees World Wide* Europe 1,733,700 N.Africa, C/SW Asia, Mid East 3,811,800 East Asia and the Pacific Africa 875,100 Americas & the 2,421,300 Caribbean 1,035,900*United States Committee for Refugees and Immigrants - December 31, 2006

US Refugee Program

IRC Resettlement Services Wide assortment of services from arrival to attainment of citizenship (up to five years) Primarily for refugees-- expanding to serve asylees and other immigrant populations

Resettlement Offices

IRC San Diego 5348 University Avenue, San Diego CA 92105 619-641-7510 Founded in 1975 Resettled > 20,000 refugees Wide spectrum of programs

Refugee Arrivals 2007-2010 73,311US 74,652 60,192 48,281 1294 1052IRC/SD 788 400 2007 2008 2009 2010

FY2010 Refugee Ethnic Breakdown

IRC Center for Financial Opportunity Financial Security Bundled Services Case Management

IRC Center for Financial Opportunity Microenterprise Development Overview “From Hardship to Entrepreneurship” - Microenterprise vs. Microfinance - Funding -Common businesses - Why is there a need?

IRC Center for Financial OpportunityMicroenterprise Development: Client Characteristics- 47% Men, 53% Women- Regions: East Africa(50%), Iraq andMiddle East (30%), Other (20%)- In US less than 5 years: 58%- Low-Income: 90%- Previous Biz Experience: 40%-CA Minimum Wage: $8/hour

IRC Center for Financial Opportunity Issues and Challenges for Refugee Entrepreneurs: • Access to Capital • Access to Technical Assistance • Access to Additional Services • Ongoing Support • Linguistically and Culturally Appropriate

IRC Center for Financial Opportunity Microenterprise Development Loans - Character-based - Maximum Loan: $15,000 - Average Loan size: $7,500 - Loans made per year: 15 to 25 - Default Rate: 5%

IRC Center for Financial Opportunity Microenterprise Development Technical Assistance -Advising and Consulting -Business Planning -Marketing -Licensing and Permitting -Bookkeeping

IRC Center for Financial Opportunity Microenterprise and Financial Education: Credit Building Program -Credit Building loans $100 and $300 -Average Score at Program Entry: NA -Average Score after 6 Months: 642

IRC Center for Financial Opportunity ExampleSaid from Somalia

IRC Center for Financial OpportunitySameer from Iraq Example

International Rescue Committee Center for Financial OpportunityJoel Chrisco, Program SupervisorJoel.chrisco@theIRC.org619-641-7510 Ext. 247 www.theIRC.org

ACCION San DiegoLending. Supporting. Inspiring. Joe and Vi Jacobs Center 404 Euclid Avenue Ste. 271 San Diego, CA 92114 T: (619) 795-7250 T: (800) 967-4429 F: (619) 795-7260 www.accionsandiego.org

ACCION’s History•ACCION San Diego is an affiliate of ACCIONInternational, an organization that began lending inLatin America in 1961•ACCION USA began a pilot program in New Yorkin 1991•ACCION San Diego office opened in 1994•Now located in 9 U.S. states•Each office is privately owned, funded & operated

Services We Provide• Small business loans up to $35,000• Build or re-build positive credit history• Help transition clients to banks• Technical assistance• Referrals to other business services• Publicity/networking opportunities

Where does ACCION get its money? • Private donations • Grants from foundations • Grants or low-interest loans from banks • City and government funds

Our Eligibility Requirements• Live/work in San Diego County• Six months of business history or previous experience in the industry for start-ups• Income/expense documentation• Capacity to make payments• Reasonable credit report• Collateral and/or co-signer may be required dependent upon level of risk• Character

How Much Will the Loan Cost?• Interest rate starts at 12% APR• Administrative fees (charged only at disbursal): •<$5,000: $75 maximum •>$5,000: 4% -6% of loan amount depending on loan is security. • $10-$25 minimum fees for securing interest in collateral

TimelinesHow long will it take to get financing?• 48 hours for quick loans $300-$2,000•2 weeks for loans $2,001 to $35,000How long will I have to pay back the loan?• Depends on size of the loan• Typically 12-60 months

Next Steps• Obtain application by mail, email or fax oron our website: www.accionsandiego.org• Compile and submit supportingdocumentation for loan request• Loan Officer will call to schedule site visit

Additional Resources• SCORE – (619) 557-7272• Small Business Development Center – (619) 482-6391 or (760) 795-8735 (N. County)• Consumer Credit Counseling – 1-866-889-9347• Credit Agencies – Experian 1-800-311-4769 – Equifax 1-800-685-1111 – Trans Union 1-800-916-8800

Questions?

In uncertain times, be certain about your lending partner

Small Business Loans

CDC Small Business Finance background and rolesCDC’s are financial intermediaries certified by theSBA to administer SBA 504 loans (commercial realestate loans), and other alternative loan products.CDC roles: direct lending, loan intermediary, loanpackaging,Creative financing: partnering with other lendersto complete request, loan guaranteesStatistics (loan volume, conversion ratio, defaultrate, interest rates)

Loan Evaluation What is underwriting??? How do you decide who to finance? Areas of Evaluation (credit, cash flow, collateral, experience, capital, character, business plan, co-signer, economic conditions)

Credit Credit www.annualcreditreport.com Know what is on your credit and make sure it’s all accurate Scores History How to establish good credit

Capacity Historical profits of business as reported on tax returns. Projections. Outside sources of income: other employment, spousal income, military, disability, retirement, rental income, alimony, child support, etc.) Personal Liquidity.

Capital Capital Owner’s injection Equity Balance sheet (retained earnings or equity) Equity requirements for existing businesses.

Collateral What is collateral? How important is it? What if you don’t have collateral? Business and Personal Assets. How much equity do you have in your home?

Experience How much experience do you need for a start up business? What is your background? What if you have no experience in the industry you are starting your business in?

Character Character business history credit reports personal interview responsiveness references

Business Plan What to include in a business plan. How important is a business plan? Projections

Conditions How does the economy affect your industry? How recession proof is your business?

Co-Signer To mitigate weaknesses in other areas, you can bring a co-signer on board to guarantee the loan. Requirements of a co-signer…stable income, good credit, possibly personal assets to secure loan.

Success Story: San DiegoUnited Sports Center

Creative PartneringWorld Famous Dog Wash

Contact Information Susan LampingSenior Community Loan Officer Main line: (619) 291-3594 ext. 8639 Direct line: (619) 243-8639 slamping@cdcloans.com CDC Small Business Finance2448 Historic Decatur Road, Suite #200 San Diego, CA 92106

Mfa week 3 presentation combined

by San Diego Microfinance Alliance on Nov 30, 2010

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 13

Statistics

Mfa week 3 presentation combined — Presentation Transcript