Presentation delivered at MassRecycle's 4th Annual Green Office / Green Facility Conference, Bentley University, June 15, 2010. Get invited to next year’s conference by signing up to MassRecycle’s free email newsletter at www.massrecycle.org.

1. ACCION USA
Green
Microloan Program
Elizabeth Garlow
Business & Product Development, ACCION USA
Lending. Supporting. Inspiring.

2. Who is ACCION USA?
• A nonprofit, community based organization providing access to capital and
credit education with over 20,000 clients served with loans averaging $9,000.
• We help individuals strengthen their business, increase their profits, and
contribute to the economic growth of their communities.
• And now, AUSA will help small business improve the environment!
www.accionusa.org 2

3. Agenda
• Why Green?
• How do ACCION USA Green Loans work ?
• Green Resources and Partners
• Additional Q & A
www.accionusa.org 3

4. Triple Bottom Line – greater impact per loan
?
reen
y G
Wh
PEOPLE
PROFIT
PLANET
www.accionusa.org 4

5. AUSA Already Provides Green Loans!
n?
r ee With a $13K AUSA loan, Raquel bought into a green cleaning franchise
y G
Wh using eco-friendly products.
A $12K AUSA loan to a bike shop helped Andrew invest in marketing
and purchase extra equipment
A business producing biodiesel products used an $8K AUSA loan to
purchase inventory and relieve the owner dependency on credit cards.
Marco owns a construction business and used a $12K AUSA loan to
purchase an eco-friendly insulation system, accessing gov programs.
Ricardo owns a commercial cleaning company and used a $20K
AUSA loan to purchase an eco-friendly carpet cleaner. While the
machine is expensive, it is opening up a whole new market.
www.accionusa.org 5

6. AUSA puts “Green” in reach!
AUSA addresses clients’ concerns by offering:
Financing for the upfront or ‘gap’ costs of going green. We will use cost
savings and rebate programs to strengthen applications
Support navigating the energy audit process
Access to free training and educational resources
Guidance around available incentives, rebates and solutions to reduce
expenses and attract new customers
www.accionusa.org 6

7. How do Green Loans work?
www.accionusa.org 7

8. Green Loan Definition
?
een
Gr
w
Ho
A “green” AUSA microloan is one
that helps entrepreneurs
incorporate green products,
services or energy saving
principles into their business
operations.
www.accionusa.org 8

9. What Qualifies as “Green”?
?
een
Gr
w Investing in Energy / Water Efficiency Measures:
Ho
New Equipment (refrigerators, ovens)
Facilities upgrades (fluorescent / LED lighting, heating / water
system upgrades, other small appliance upgrades)
Providing Green Services:
Services or industries that are “green” in nature (weatherization,
eco-tourism, alternative transportation)
Offering / Using Green Products:
Organic/sustainable forestry/local products
Recycled materials
Alternative Energy-related products (biodiesel, solar panels)
www.accionusa.org 9

10. Energy Efficiency Loan Benefits
n?
ee Avg F&B Loan $9,036
Gr
w
Ho
Avg Mthly Utility Bill $753
Avg Mthly Savings $103 (14%)
With an Energy Audit …
Term of Loan Potential Loan Increase
12 $1,239
We add cost savings to
18 $1,858 the applicant’s monthly
24 $2,478 income, improving their
cash flow and their
30 $3,097 chances of getting
approved.
36 $3,717
42 $4,336
www.accionusa.org 10

11. Green Resources and Partners!
www.accionusa.org 11

12. Green Entrepreneur Resource Center
ACCION USA created an online ‘Green Entrepreneur
Resource Center’ with:
Articles and Tip Sheets
Resource Center for Green Entrepreneurs with links to partner organizations
ACCION USA is engaging our partners as guest experts in
a webinar series:
Branding Your Business for the Green Market
Making your Business Energy Efficient
Green Marketing 101
All About Green Business Certifications
Sustainability and Leadership (June 22nd!)
Comenzando un negocio sostenible (June 24th)
www.accionusa.org 12

13. Partnership / Referral Examples
n!
r ee
ll G
Se
Banks & Com AUSA Partners with organizations to help small
Orgs businesses access the $ they need
Energy Auditor Work together with energy auditors to help
/ Utility streamline the process for clients
Gov Agencies NYSERDA, Mass CEC, EPA (Energy Star)
Distributors / We’d like to offer green discounts (ex. Green
Manufacturers Depot 10% Discount)
TA Providers DSIRE USA, Nat / Local Restaurant Associations,
Sustainable Business Networks, and YOU!
www.accionusa.org 13

14. Interest Rates
Green Loans Range in size between $500 - $50,000 or up to $30,000 if
not yet profitable
Green Loans APR 8.99-15.99% for up to $50,000 (8.99% in New York)
Renewal Loans with perfect Rate decreases with each additional loan.
repayment on previous AUSA
loans
FEES Financed into loan
Application Fee $30 If Loan is Approved
Closing costs Fees 3-6% of the loan amount
Pre-penalty Fee None
TERMS up to 60 Months
Equal monthly payments of principal and interest for Growing and Established Businesses
www.accionusa.org 14

15. Requirements
Green Loan Program Eligibility:
• Energy savings loan requires an energy audit
• Equipment purchases must be energy efficient certified
• 50% of the loan purpose must be green
General Business Loan:
•Six or more months in operation
•Credit score of 575 or higher with less than $3,000 in past due debt
• No bankruptcies in the past 12 months, no foreclosures in the past 24
months, owning no more than 4 properties
• No late payments on rent/mortgage in the past 12 months
• Sufficient cash flow to comfortably support monthly loan payments
Additional for Start-up Loans:
• Cosigner may be required
• If not yet profitable, borrower or spouse must have outside income
• All required licenses in place
• Market study and 12 months of financial projections
www.accionusa.org 15

16. For More Information…
If you have questions about our green loan program, would
like to apply for a green loan or would like to make a green
loan referral:
Please contact Renzo Mendoza-Castro at
(617) 616-1551 or rmendoza@accionusa.org
• Visit www.accionusa.org/green
• Green workshops listed at
www.accionusa.org/workshops
www.accionusa.org 16