Community and Partner Outreach Part 1<br />How We Lend.<br />
Why Microfinance?<br />Microfinance bridges the ever-widening credit gap,<br />and is especially important in today’s economy.<br />Access to Credit: 10 million microbusinesses nationwide face difficulty obtaining capital from conventional sources. <br />Alternative to Predatory Lending: Predatory lenders charge avg. annual interest rates over 300% and accounted for over $42 billion in loan volume in 2008.<br />
Impact of Microenterprises <br />Microenterprises…<br /><ul><li>Make up 88%1 of all U.S. businesses
24 million people in the U.S. are microentrepreneurs2</li></ul>1Association for Enterprise Opportunity (2009), “Microenterprise Business Statistics,” AEO. http://www.aeoworks.org/index.php/site/page/index.php/site/page/category/research/#MEBS. <br />2 Washington State Microenterprise Association (2009). “Microenterprise in the U.S. and Washington State.” http://www.sneda.org/documents/MicrointheUSandWashington.pdf<br />3 FIELD (2008). “Microentrepeneurs and their businesses: 2008 Microtest Outcomes.” http://www.fieldus.org/MicroTest/MTOutcomes08FactSheet.pdf<br />
About ACCION USA<br />Since 1991,ACCION USA has been committed to building strong, vibrant communities by providing low-to-moderate income business owners with access to capital and financial education. <br />
The ACCION USA Portfolio<br /><ul><li>More than 19,000 loans have been disbursed, totaling approximately $123MM
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 />
ACCION USA’s Impact <br /><ul><li>Creates an average of 2.4 new jobs per microenterprise
ACCION USA borrowers pay 24% more than the national minimum wage of $9/hr
Sustainability! ACCION USA’s business survival rate is 98% for established businesses </li></ul>1.ACCION USA (2009). “Sustaining businesses and jobs amid the financial crisis: Outcomes Data in the ACCION USA Footprint, 2007-2008.” http://www.accionusa.org/Uploads/FileManager/Publications/ACCION%20USA_2009%20Impact%20Study.pdf 1<br />
Innovative Partnerships<br />Samuel Adams “Brewing the American Dream”<br />Tory Burch Foundation<br />Count Me In for Women’s Economic Independence<br />Banking partnerships<br />
Partnerships - Kiva<br />ACCION partnered with Kiva in 2009 to raise awareness of U.S. microlending .<br />By sharing stories about their businesses to the online community, entrepreneurs receive support for their microfinance efforts through Kiva’s website (www.kiva.org).<br />The stories inspire and educate the public, enabling ACCION to raise funds and continue lending to small business owners across the country.<br />
Community Outreach Volunteers…<br /> are committed to advancing the mission of ACCION USA.<br /> work closely with the ACCION USA Loan Consultants (LC’s) to grow and strengthen our lending portfolio. <br />provide assistance throughout all stages of the micro lending process, from outreach and intake to final disbursal.<br /> gain valuable knowledge about US microfinance and are instrumental in furthering the mission of ACCION USA, to reach the individuals who need us most.<br />
What You Will Learn<br /><ul><li>Define ACCION USA’s loan process from start to finish for “start-ups” and existing businesses.
Describe the variables that influence microloan approvals .
Explain the value of ACCION USA’s online financial literacy resources to clients.
Identify the location and value of ACCION USA’s online resources for field representatives.</li></li></ul><li>One of Many Success Stories<br />Raquel Sierra-Pinto<br /><ul><li>“I enjoyed my work, but the market had its ups and downs, which I couldn’t control. I decided to find steadier business.”
Expanded her business with the help of ACCION USA
Result: Eco-friendly and continued sustainability</li></ul>Doubles Cleaning<br />Antioch, TN<br />Interested in learning more about ACCION USA “green” loans? Click here for more information.<br />
What’s Next?<br />Congratulations! <br />You have successfully completed Part One!<br />In Part Two, you will:<br />Apply your knowledge<br />See examples of the ACCION USA loan process in action<br />