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ACCION USA: Microfinance at Work in the United States

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ACCION USA: Microfinance at Work in the United States

  1. 1. ACCION USA Microfinance at Work in the United States
  2. 2. Our Mission As a leader in U.S. microfinance, ACCION USA empowers low-to-moderate income business owners through access to capital and financial education. With economic opportunity, these entrepreneurs—often minorities and women—can build assets, better provide for their families, create employment and strengthen their communities.
  3. 3. Microenterprise Market in the U.S. <ul><li>22 million businesses owned by microentrepreneurs in the US </li></ul><ul><ul><li>5.13 million women-owned businesses </li></ul></ul><ul><ul><li>2.5 million minority-owned businesses </li></ul></ul><ul><ul><li>4.3 million business owners with personal incomes <$10k* </li></ul></ul>
  4. 4. Fast Facts about ACCION USA <ul><li>History: </li></ul><ul><li>Pilot program in Brooklyn, NY in 1991 </li></ul><ul><li>Branch Locations: </li></ul><ul><li>New York, Boston, Atlanta, Miami and Internet loans </li></ul><ul><li>Dollars lent: </li></ul><ul><li>118 Million </li></ul><ul><li>Loan size: </li></ul><ul><li>$500-$50,000; average $6,000 </li></ul><ul><li>Interest rates: </li></ul><ul><li>8-15% </li></ul><ul><li>Historical Repayment Rate: </li></ul><ul><li>Over 90% repayment </li></ul>
  5. 5. ACCION USA Portfolio
  6. 6. ACCION USA Portfolio 40% Women 61% Latino 27% African American
  7. 7. The Growing Importance of Domestic Microfinance Microenterprise is a vital part of the US Economy <ul><li>Microfinance is central to building a strong economy </li></ul>Microenterprises are more vulnerable to hard times
  8. 8. Access to Capital <ul><li>It is estimated that more than half of all microentrepreneurs in the US lack access to financing for their small businesses </li></ul><ul><li>Lack of credit or low credit score </li></ul><ul><li>Some industries are considered to be high risk </li></ul><ul><li>Lack of financial documentation or records </li></ul><ul><li>Business is informal—no commercial track record </li></ul><ul><li>Loan amount needed is too small </li></ul><ul><li>Language Barriers </li></ul>
  9. 9. Our Clients “ It is important that when I went to ACCION USA, I felt valued and I felt that ACCION USA believed in me and my business”
  10. 10. ACCION USA Lending Philosophy
  11. 11. International and Domestic Microfinance <ul><li>Differences </li></ul><ul><li>Domestic loan sizes are much larger </li></ul><ul><li>Individual lending instead of group lending </li></ul><ul><li>Domestic microfinance has not achieved self-sufficiency </li></ul><ul><li>Similarities </li></ul><ul><li>Asset building resources and financial education are crucial </li></ul><ul><li>Common mission </li></ul>
  12. 12. ACCION USA Lending Impact <ul><li>Provide alternative to predatory lenders </li></ul><ul><li>Create employment opportunities </li></ul><ul><li>Increase family income </li></ul><ul><li>Generate sustainable businesses </li></ul>1 Microtest Program Report, FY2008 Performance; 2 Estimates based on direct lending using ATX Impact Study methodology
  13. 13. Get Involved @ACCION_USA #MifiMon Check out our blog at: www.accionusa.org/blog

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