Access to Capital | Intro to CFRC Small Biz Programs

COMMUNITY FINANCIALRESOURCE CENTER

Give your name

Personal characteristic about yourself

City where you live

Name of your current business or business idea

WELCOME

ACCESS TO CAPITAL

© 2012 Community Financial Resource Center

What are the barriers?

MICRO ENTREPRENEUR


What are the challenges as a small business owner?

MICRO FINANCE


MICRO FINANCE


A small business, registered or unregistered

With five or less employees

Requiring seed capital of $35,000 or less

MICRO FINANCE


Community Financial Resource Center

CAPITAL PARTNERS™ PROGRAM


Provide business loans and business education together with opportunities to network with peers

Peer lending loan program Built around the “group” concept Graduated loans as a means to building and

(re) establishing credit Networking and professional support

PROGRAM DESCRIPTION & MECHANICS

PROGRAM OVERVIEW

The ONLY organization on the West Coast to offer peer loans modeled after Grameen Bank

No prior business experience required…even a business idea will do!

Work at your own pace

“What Makes CFRC Capital Partners™ Unique?”

PROGRAM OVERVIEW

CFRC Capital Partners™ does not require:A business plan

Tax returns

No credit check

No collateral

FEW BARRIERS

PROGRAM OVERVIEW

Work in a group of three to eight members

HOW DOES IT WORK?

PROGRAM OVERVIEW

Create a group name and establish by-laws

HOW DOES IT WORK?

PROGRAM OVERVIEW

Group members are the loan committee

Responsible for approving and rejecting loan requests

Review business profiles

Assure funds are being used for their intended purpose

SYSTEM OF CHECKS AND BALANCES

PROGRAM OVERVIEW

Loans are given in graduated amounts From $500 up to $5,000

All group members must be current on loans in order for any one member to move through the program

STEP-BY-STEP

PROGRAM OVERVIEW

Each loan level has its corresponding training Taught by small business counselor

Covers business plans, business profiles, accounting, etc.

TRAINING

PROGRAM OVERVIEW

To be eligible for your first loan you must attend the Level One training beforehand.

Following, trainings must be completed before moving up to the consecutive level.

LOAN DISTRIBUTION

PROGRAM OVERVIEW

Loans are distributed 2-4 weeks after loan request is submitted by group

Non-refundable $75 fee for materials and training

LOAN DISTRIBUTION

PROGRAM OVERVIEW

The CFRC Capital Partners™ Loan StructurePROGRAM DESCRIPTION & MECHANICS

PROGRAM OVERVIEW

The word “credit” comes from Latin and means to believe or trust. We believe in trust.

$5,000

$4,000 $5,000$3,000 $4,000

$2,000 $3,000 $1,000 $2,000

$500 $1,000 $500

4-6 mo. 4-12 mo. 4-18 mo. 6-24 mo. 6-36 mo. 6-36 mo.12 months 24 months 24 months 24 months 24 months

Interest = 10% annualized

Monthly Service Fee = $3.00 Example: $500 Loan

4 month term

Payment = $130.61

Group members are not legally responsible for each other’s loan.

ACCOUNTABILITY STRUCTURE

PROGRAM GUIDELINES

Each borrower is legally responsible for their own loan.

In order for any member to advance to the next loan level, ALL members must be current on their loan payments.

Proof of Income

Live in the County of Los AngelesProof of 6 months residency

Two forms of IdentificationDriver’s License, Passport,

Government-Issued ID

“How do I participate?”

PROGRAM OVERVIEW

“What are the benefits?”

PROGRAM OVERVIEW

Make loan decisions Build a strong businessStrengthen and build your credit profile

Participation in seminars and mixersPeer support and networking with other business ownersAccess to capital

• Consulting Services for eligible CP members

• 1-on-1 counseling

• SEED & Expansion loans up to $250K

CONSULTING | COUNSELING | EXPANSION

ADDT’L SERVICES

• Really high interest savings accounts

• Personal Financial Coaching

• Money Management Workshops

SAVINGS PRODUCTS | FINANCIAL COACHING

ADDT’L SERVICES

• Networking Events

• Open Houses

• Community Small Business Directory

NETWORKING | PROMOTION

OTHER SERVICES

KickStarter. com

IndieGoGo.com

Fundly.com

Sponsume.com

SOCIAL NETWORKS AND LENDING | CROWDFUNDING

OTHER RESOURCES

CONCLUSION

QUESTIONS & ANSWERS

Questions &

Answers

Capital Partners Orientation

Thursday, July 12th

6:30 pm to 8:00 pm4060 South Figueroa Street

(Corner of Figueroa & MLK Blvd.)

Facebook.com/cfrcla

Youtube.com/CFRCLAdotORG

@CFRCLA

@BankOnLA

Text (323) 905-4060

“Let us be your resource!”

KEEP IN TOUCH

Access to Capital | Intro to CFRC Small Biz Programs

Economy & Finance

Transcript of Access to Capital | Intro to CFRC Small Biz Programs