ACCION USAMicrofinance at Work in theUnitedStates<br />
Our Mission<br />ACCION USA empowers entrepreneurs to invest in their business, family and community through financial lit...
ACCION USA History and Portfolio<br />ACCION USA offers loans from $500 to $50,000 for small business and credit developme...
Portfolio Demographics<br />65% Latino<br />20% African American<br />40% Women<br />
Client Snapshot<br /><ul><li>  87% are low-to-moderate income
  90% are minority
  75% have lived in U.S. over 10 years
  38% are home-based businesses
  45% are first-time borrowers</li></ul>65% Latino<br />20% African American<br />40% Women<br />Source: 2009 Impact Study...
Portfolio by Industry<br />Clients work mostly in food & beverage, retail, transportation and beauty <br />
Why are we needed?<br />    Over 850,000 microenterprises account for over 92% of privates-sector businesses in NYC, and m...
Some industries are considered to be high risk
Upcoming SlideShare
Loading in …5
×

ACCION USA: Microfinance at Work in the United States

918 views

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
918
On SlideShare
0
From Embeds
0
Number of Embeds
53
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

ACCION USA: Microfinance at Work in the United States

  1. 1. ACCION USAMicrofinance at Work in theUnitedStates<br />
  2. 2. Our Mission<br />ACCION USA empowers entrepreneurs to invest in their business, family and community through financial literacy and capital.<br />
  3. 3. ACCION USA History and Portfolio<br />ACCION USA offers loans from $500 to $50,000 for small business and credit development purposes at interest rates ranging from 8.99 – 15.% And Financial Education tools and resources.<br />ACCION USA has lent $122 million since 1991: With approximately 3,000 active borrowers across 46 states.<br />ACCION USA has branch locations in New York, Boston, Atlanta, and Miami and is able to serve the business coast-to-coast through our online application <br />The ACCION Network has supported over 36,000 microentrepreneurs with $250 million. This network of licensees serving TX, LA, NM, CO, AZ, IL, and CA.<br />
  4. 4. Portfolio Demographics<br />65% Latino<br />20% African American<br />40% Women<br />
  5. 5. Client Snapshot<br /><ul><li> 87% are low-to-moderate income
  6. 6. 90% are minority
  7. 7. 75% have lived in U.S. over 10 years
  8. 8. 38% are home-based businesses
  9. 9. 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 />
  10. 10. Portfolio by Industry<br />Clients work mostly in food & beverage, retail, transportation and beauty <br />
  11. 11. Why are we needed?<br /> Over 850,000 microenterprises account for over 92% of privates-sector businesses in NYC, and many cannot access capital because… <br /><ul><li>Lack of credit or low credit score
  12. 12. Some industries are considered to be high risk
  13. 13. Lack of financial documentation or records
  14. 14. Business is informal—no commercial track record
  15. 15. Loan amount needed is too small
  16. 16. Language Barriers</li></ul>Source: Microenterprise Employment Statistics published by the Association for Enterprise Opportunity (AEO)<br />
  17. 17. The need for microfinance in the U.S.<br />40 million households (106 million people) have limited access to mainstream financial institutions in the U.S. and 28 million people are completely unbanked.<br />Microenterprises (5 employees or less) account for approximately 18% of employment in the U.S. and create 900,000 jobs a year.<br />Predatory lenders charge average annual interest rates over 300%— and accounted for over $42 billion in loan volume in 2008.<br />
  18. 18. Decision Factors<br />Credit History<br />Credit Score 575 and above<br /> Relatively low balances<br /> Healthy % of available credit <br /> Open accounts that are current.<br /> Zero FICO score is acceptable for credit start loans<br />Character<br />References: residential and commercial landlords, supplier, client and/or personal references.<br />Cash Flow<br />An examination of sales versus expenses must demonstrate capacity to repay loan. Business and personal bank statement review.<br />Start-ups must present 12 months of financial projections.<br />Loan Purpose<br />Detailed list of expenditures.<br />Contributes to the positive growth of business. Loan uses that will clearly improve the revenues and/or profits of the business<br />
  19. 19. Background Information Prior Learning – Loan Process<br />STEP 2:.<br />Formal Pre-Approval Process and begins Loan Application<br />STEP 1:<br />Make Connection<br />And Pre-Screen Client<br />STEP 3:<br />Client submits complete loan application. Loan Consultant interviews the client.<br />STEP 6:<br />Loan Enters Repayment<br />STEP 4:<br />Loan Application is sent to Underwriting Team<br />STEP 5:<br />Underwriter Approves Loan and Loan is Dispersed<br />
  20. 20. 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 />
  21. 21. How to be involved?<br />Attend the Microfinance USA conference in New York City, May 23-24th 2011- Register today!<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!<br />

×