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Incubating a Food Business with Financing

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Incubating a Food Business with Financing

  1. 1. Funding, Mentorship, and Visibility to Grow Your Business
  2. 2. Access to Capital Options for Everyone What stage are you in? What are you options?
  3. 3. <ul><li>Your ability and willingness to pay them back! </li></ul><ul><li>Build/Repair your personal credit </li></ul><ul><li>Prepare a detailed and coherent business plan </li></ul><ul><li>Prepare your financial statements </li></ul><ul><ul><li>Profit and Loss Statements (Existing businesses) </li></ul></ul><ul><ul><li>12 months of financial projections (New Business) </li></ul></ul>What do lenders look for?
  4. 4. <ul><li>Pay on time </li></ul><ul><li>Keep a healthy percentage of available credit </li></ul><ul><li>Diversify your trade lines </li></ul><ul><li>Be proactive in calling your creditors </li></ul><ul><li>Don’t open a lot of new accounts too quickly </li></ul>Managing Credit Today: Key Strategies
  5. 5. Who is ACCION USA? ACCION USA is a non-profit microlender. Since 1991, we’ve provided 20,000 entrepreneurs in the Unites States with access microloans and financial education to start, grow, or expand their businesses- Our investments in small businesses total $120 million.
  6. 6. Who do we lend to? <ul><li>ACCION USA’s clients range from small home-based/incubator entrepreneurs to established storefront business owners. </li></ul><ul><li> --Average loan size $7,000 </li></ul>
  7. 7. ACCION USA Small Business Loan Products <ul><li>Established Businesses </li></ul><ul><ul><li>6 Months of Revenue & Profitable </li></ul></ul><ul><ul><li>Loan Amount: up to $50,000* </li></ul></ul><ul><li>Start-Up and Transition Businesses </li></ul><ul><ul><li>6 Months of Revenue but Not Yet Profitable </li></ul></ul><ul><ul><li>Loan Amount: up to $30,000* </li></ul></ul><ul><li>Sprout Loan </li></ul><ul><ul><li>0-6 months of revenue with outside source of income (full or part-time job) </li></ul></ul><ul><ul><li>Loan Amount: up to $5,000 </li></ul></ul>
  8. 8. <ul><li>Loan process: 5-10 business days </li></ul><ul><li>Terms up to 60 months </li></ul><ul><li>ACH Monthly Payments </li></ul><ul><li>Interest rates: start at 8.99% average 11.99% </li></ul><ul><li>No prepayment penalties </li></ul>Small Business Loan Product Specifics
  9. 9. ACCION USA Prequalification Questions <ul><li>Credit Score over 575 </li></ul><ul><li>No more than $3,000 past due </li></ul><ul><li>No Bankruptcy in the last year </li></ul><ul><li>No Foreclosure in the last 2 years </li></ul><ul><li>No late payments on mortgage and rent in the last year </li></ul><ul><li>Start Up Requirements </li></ul>
  10. 10. Sprout Loan Requirements <ul><li>Less than 6 months in operation </li></ul><ul><li>2 nd source of income from client or household member </li></ul><ul><li>A market study and 12-months of financial projections </li></ul><ul><li>Technical expertise and commitment to the business </li></ul><ul><li>All required licenses and permits </li></ul>
  11. 11. Brewing the American Dream <ul><ul><li>Restaurants & Bakeries </li></ul></ul><ul><ul><li>Food and beverage products </li></ul></ul><ul><ul><li>Hospitality & Tourism </li></ul></ul><ul><ul><li>Craft Brewers </li></ul></ul>
  12. 12. Food Businesses we have lent to… <ul><li>Black and Blanco, Sandcastle Cookies </li></ul><ul><ul><li>$5,000 loan to purchase baking </li></ul></ul><ul><ul><li>equipment and new packaging </li></ul></ul><ul><ul><li>Operating out of kitchen incubator </li></ul></ul><ul><ul><li>6 months in operation </li></ul></ul>
  13. 13. Program Benefits for Client <ul><li>Ongoing 1:1 mentorship </li></ul><ul><li>Getting product to market </li></ul><ul><li>Media Opportunities </li></ul><ul><li>Catering </li></ul><ul><li>Seasonal Product Integration </li></ul>
  14. 14. How can a beer company boost your business? Visit: www.samueladams.com/btad
  15. 15. How to Apply! <ul><li>Apply online at www.accionusa.org/apply </li></ul><ul><li>Code: Sprout </li></ul><ul><li>Email Paper application to [email_address] </li></ul><ul><li>For Questions, contact Erica Dorn at 646-833-4522 </li></ul>
  16. 16. Technical Assistance Resources <ul><li>Tips on credit & money management and small business strategies at www.accionusa.org/financialeducation </li></ul><ul><li>Free Online Webinars and Community Events listed at www.accionusa.org/workshops </li></ul>
  17. 17. Questions? <ul><li>Thank you! </li></ul>

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