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Silicon Valley Microfinance Network February 24, 2009
Who Does Microfinance Serve in the U.S.? <ul><li>Low and Moderate Income Entrepreneurs  </li></ul><ul><li>Cannot access ba...
Microfinance in the U.S. <ul><li>Automotive </li></ul><ul><li>Beauty Salons </li></ul><ul><li>Childcare/education </li></u...
Key Differences U.S. International Savings Match Use of Peer Lending  Concentration of Borrowers  Interest Rates   Technic...
Opportunity Fund - Founded 1995 <ul><ul><li>Opportunity Fund advances the economic well-being of working people by helping...
Microfinance <ul><li>Small Business Loans </li></ul><ul><ul><li>$1,000-200,000 </li></ul></ul><ul><ul><li>One-to-one busin...
Our Portfolio <ul><li>Loans </li></ul><ul><ul><li>$10 Million cumulative over last 10 years </li></ul></ul><ul><ul><li>800...
Microloan Program Financial Information  <ul><li>Earned Income:  $500,000 (includes government contract) </li></ul><ul><li...
Our Clients <ul><li>73% of clients are minorities, 70% are women </li></ul>
Our Impact <ul><li>Borrowers have an 85% survival rate (compared to ~44% national average) </li></ul><ul><li>30% Increase ...
Contact Us <ul><li>www.opportunityfund.org </li></ul><ul><li>Evelyn Huang </li></ul><ul><li>Small Business Loan Program Di...
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Opportunity Fund presentation to SVMN 2.24.09

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Evelyn Huang presented this material at the Silicon Valley Microfinance Network (SVMN) event February 24, 2009.

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Opportunity Fund presentation to SVMN 2.24.09

  1. 1. Silicon Valley Microfinance Network February 24, 2009
  2. 2. Who Does Microfinance Serve in the U.S.? <ul><li>Low and Moderate Income Entrepreneurs </li></ul><ul><li>Cannot access bank financing </li></ul><ul><ul><li>New business (< 2 years) </li></ul></ul><ul><ul><li>No collateral </li></ul></ul><ul><ul><li>Less than perfect credit </li></ul></ul><ul><ul><li>Need small amounts of capital </li></ul></ul><ul><li>Cultural and language barriers </li></ul><ul><li>Home-based businesses </li></ul><ul><li>Dependent on income </li></ul>
  3. 3. Microfinance in the U.S. <ul><li>Automotive </li></ul><ul><li>Beauty Salons </li></ul><ul><li>Childcare/education </li></ul><ul><li>Cleaning Services </li></ul><ul><li>Delivery Service </li></ul><ul><li>Fitness and Recreational Sports Centers </li></ul><ul><li>Food retailers and Grocery/Convenience stores </li></ul><ul><li>Household / supplies / repair </li></ul><ul><li>Landscaping </li></ul><ul><li>Manufacturing </li></ul><ul><li>Music, Photography, Video, Art </li></ul><ul><li>Personal care services </li></ul><ul><li>Health and Well-Being </li></ul><ul><li>Professional Services </li></ul><ul><li>Restaurant </li></ul><ul><li>Retail / apparel / accessories </li></ul><ul><li>Trucking / transport </li></ul>
  4. 4. Key Differences U.S. International Savings Match Use of Peer Lending Concentration of Borrowers Interest Rates Technical Assistance
  5. 5. Opportunity Fund - Founded 1995 <ul><ul><li>Opportunity Fund advances the economic well-being of working people by helping them earn , save , and invest in their future. </li></ul></ul>
  6. 6. Microfinance <ul><li>Small Business Loans </li></ul><ul><ul><li>$1,000-200,000 </li></ul></ul><ul><ul><li>One-to-one business and personal finance advising </li></ul></ul><ul><ul><li>Largest Lender in Northern California </li></ul></ul><ul><li>Matched Savings Accounts </li></ul><ul><ul><li>401-k like savings accounts with financial education and 2:1 match </li></ul></ul><ul><ul><li>Top 2 IDA Providers in the nation (EARN) </li></ul></ul>
  7. 7. Our Portfolio <ul><li>Loans </li></ul><ul><ul><li>$10 Million cumulative over last 10 years </li></ul></ul><ul><ul><li>800 loans </li></ul></ul><ul><ul><ul><li>156 FY08 </li></ul></ul></ul><ul><ul><ul><li>184 FY07 </li></ul></ul></ul><ul><ul><li>Size of outstanding portfolio: $2M </li></ul></ul><ul><ul><li>Median loan size: $5,000 </li></ul></ul><ul><ul><li>Historical Charge-Off Rate: 9% </li></ul></ul><ul><li>Savings </li></ul><ul><ul><li>2,500 accounts cumulative over last 10 years </li></ul></ul><ul><ul><li>On average, people saving $85/month </li></ul></ul><ul><ul><li>Total raised by clients and matched funds: $9.8M </li></ul></ul><ul><ul><li>Invested in Assets: 7.26M </li></ul></ul><ul><ul><li>(Home, Small Business, Education, Retirement) </li></ul></ul>
  8. 8. Microloan Program Financial Information <ul><li>Earned Income:  $500,000 (includes government contract) </li></ul><ul><li>Direct Program Expenses: $1 million </li></ul><ul><li>Cost Recovery:  50%  (35% if include full administrative allocation) </li></ul><ul><li>Cost Per Participant:  $1,091 </li></ul><ul><li>Operational Cost Rate (Operating Budget / Portfolio Under Management):  61% </li></ul><ul><li>The Difference:  Corporate Grants, Foundation Grants, Individual Donors </li></ul>
  9. 9. Our Clients <ul><li>73% of clients are minorities, 70% are women </li></ul>
  10. 10. Our Impact <ul><li>Borrowers have an 85% survival rate (compared to ~44% national average) </li></ul><ul><li>30% Increase in household income </li></ul><ul><li>34% Increase in net business income </li></ul><ul><li>50% Increase in the number of employees per business </li></ul><ul><li>Source: Each year, we use MicroTest, a performance and outcome management tool developed by FIELD, a project of the Aspen Institute. In 2007, our response rate was 60%. The following were among our findings. </li></ul>
  11. 11. Contact Us <ul><li>www.opportunityfund.org </li></ul><ul><li>Evelyn Huang </li></ul><ul><li>Small Business Loan Program Director </li></ul><ul><li>(408) 516-4602 </li></ul><ul><li>[email_address] </li></ul><ul><li>Eric Weaver </li></ul><ul><li>CEO </li></ul><ul><li>[email_address] </li></ul>May 28, 2009 Stanford University www.microfinancecalifornia.org The first state-wide conference highlighting microfinance as a smart investment for California

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