ACCION USAMicrofinance at Work in theUnitedStates<br />
ACCION- helping millions help themselves<br /><ul><li>Starting in the 1970s, experimental programs in Bangladesh, Brazil, ...
ACCION International was founded in 1961 to address the desperate poverty in Latin America's cities. Begun as a student-ru...
In 1991, ACCION piloted a program in Brooklyn, New York after seeing many entrepreneurs from Latin America facing a simila...
Loans range from $500 to $50,000; average loan is $7,500
Historical repayment rate: over 92%</li></ul>Source: www.accionusa.org<br />
ACCION U.S. Network<br />The U.S. ACCION Network is a coordinating and resource building entity among five regional office...
Network Wide Impact<br /><ul><li>$305 million: total dollar value of loans made since inception
41,226: total number of loans made since inception
$7,300: current average loan size
$41,800 million: amount of active portfolio
90%: historical loan repayment rate</li></li></ul><li>Our Mission<br />ACCION USA empowers entrepreneurs to invest in thei...
The need for microfinance in the U.S.<br />    There are over 20 million microenterprises in the United States but less th...
Some industries are considered to be high risk
Lack of financial documentation or records
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ACCION USA Presents Microfinance 101

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Overview of domestic microfinance.

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ACCION USA Presents Microfinance 101

  1. 1. ACCION USAMicrofinance at Work in theUnitedStates<br />
  2. 2. ACCION- helping millions help themselves<br /><ul><li>Starting in the 1970s, experimental programs in Bangladesh, Brazil, and a few other countries extended tiny loans to groups of poor women to invest in micro-businesses.
  3. 3. ACCION International was founded in 1961 to address the desperate poverty in Latin America's cities. Begun as a student-run volunteer effort in the shantytowns of Caracas, Venezuela, ACCION has a network of lending partners that spans Latin America, Africa, Asia and the United States.
  4. 4. In 1991, ACCION piloted a program in Brooklyn, New York after seeing many entrepreneurs from Latin America facing a similar challenge of financing in the U.S.</li></li></ul><li>Domestic Microfinance<br /><ul><li>1991: Pilot program in Brooklyn, New York
  5. 5. Loans range from $500 to $50,000; average loan is $7,500
  6. 6. Historical repayment rate: over 92%</li></ul>Source: www.accionusa.org<br />
  7. 7. ACCION U.S. Network<br />The U.S. ACCION Network is a coordinating and resource building entity among five regional offices which elevates the work of the members to create world class microfinance institutions.<br />ACCION Chicago<br />ACCION New Mexico-Arizona-Colorado<br />ACCION San Diego<br />ACCION Texas-Louisiana<br />ACCION USA<br />
  8. 8. Network Wide Impact<br /><ul><li>$305 million: total dollar value of loans made since inception
  9. 9. 41,226: total number of loans made since inception
  10. 10. $7,300: current average loan size
  11. 11. $41,800 million: amount of active portfolio
  12. 12. 90%: historical loan repayment rate</li></li></ul><li>Our Mission<br />ACCION USA empowers entrepreneurs to invest in their business, family and community through financial literacy and capital.<br />
  13. 13. The need for microfinance in the U.S.<br /> There are over 20 million microenterprises in the United States but less than 1% are receiving credit or business assistance due to factors such as:<br /><ul><li>Lack of credit or low credit score
  14. 14. Some industries are considered to be high risk
  15. 15. Lack of financial documentation or records
  16. 16. Business is informal—no commercial track record
  17. 17. Loan amount needed is too small
  18. 18. Language Barriers</li></ul>Source: Field Program (The Aspen Institute)<br />
  19. 19. ACCION USA Portfolio<br />
  20. 20. Portfolio Demographics<br />65% Latino<br />20% African American<br />40% Women<br />
  21. 21. Client Snapshot<br /><ul><li> 87% are low-to-moderate income
  22. 22. 90% are minority
  23. 23. 75% have lived in U.S. over 10 years
  24. 24. 38% are home-based businesses
  25. 25. 45% are first-time borrowers</li></ul>65% Latino<br />20% African American<br />40% Women<br />Source: 2009 Impact Study and ACCION USA Portfolio as of 12/31/2010<br />
  26. 26. Loan Requirements<br />Have a credit score of 575 or more. <br />Have not have declared bankruptcy in the past 12 months or foreclosure in the past 24 months.<br />Have not had any late rent or mortgage payments in the past 12 months.<br />Be up-to-date on all bills.<br />Exhibit steady cash flow and the ability to support monthly loan payments. <br />Be able to provide a cosigner, if needed.<br />If you have a mortgage, it must be fixed-rate or an adjustable rate mortgage that does not adjust during the term of the loan.<br />
  27. 27. Loan Process<br />STEP 2:.<br />Client submits documents and is interviewed by a loan consultant<br />STEP 1:<br />Client applies for a loan and is quickly informed about eligibility and loan size<br />STEP 3:<br />Application is reviewed by the underwriting team.<br />STEP 5:<br />Repayment begins or the client is referred to an organization to improve loan eligibility<br />STEP 4:<br />Loan is dispersed if approved<br />
  28. 28. Our Impact<br />We create sustainable businesses: The business survival rate among ACCION USA clients is 98% for established businesses and 89% for start-up businesses.<br />We create employment in low-to moderate-income communities: On average, each ACCION USA small business loan recipient creates 3 jobs (including the borrower).<br />We create fair wages: Jobs created by ACCION USA borrowers pay 33% more ($10.80/hour) than the federal minimum wage ($7.25/hour).<br />We improve their quality of life: Clients reported a 19% median increase in take-home pay in the midst of economic distress.<br />Source: 2010 MicroTest Outcomes Survey in partnership with the Aspen Institute <br />
  29. 29. Stories of Success-Partnerships<br />Luis Zepeda Alvarez<br /> An ACCION USA borrower featured on Kiva<br />1 The Small Business Share of GDP, Katherine Kobe, Economic Consulting Services, LLC; 2 The Small Business Administration (2006) <br />
  30. 30. How can you get involved?<br />Tell business owners about ACCION USA - they can apply online at www.accionusa.org<br />Sign up for our news about upcoming events and important news in microfinance on our website at www.accionusa.org!<br />Attend our upcoming Microfinance Harvest Event on November 1st. Email Erica to attend edorn@accionusa.org<br />

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