Accion Partner Presentation
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Transcript of Accion Partner Presentation
Lending. Supporting. Inspiring.
Accion:Leader in U.S. Microfinance
2www.accionusa.org
AGENDA
What is U.S. microfinance?
Who is Accion?
Accion Products
Strategic Partnerships
3www.accionusa.org
What is U.S. Microfinance?
4www.accionusa.org
Is microlending the same as small biz lending?
• Microentreprenu
ers employed
50%
• of all private
sector
employees and
generated 64%
of net new jobs
over past 15
years!
• 99% of U.S.
businesses
employ fewer
than 500
employees• 91% employ
fewer than 5
employees• (microenterpris
es)
> 1% of 20 mm microenterprises receives credit or business assistance
Not really …
Eddie, Accion Client and owner of Dardanel Mediterranean Restaurant, New York City
5www.accionusa.org
Barriers to Traditional Capital
Little or no credit history
Minimal financial documentation
Small capital needs
High risk industries
Under two years in business
“Accion gave me the chance to start my credit history for the first time, accepting my ITIN #, and helping my business to grow.” -Jose Araujo, Deerfield Beach, FL
6www.accionusa.org
Impact of Microfinance
We create sustainable businesses
We create employment in low-to moderate-income communities
We create fair wages
We improve their quality of life
Source: 2010 MicroTest Outcomes Survey in partnership with the Aspen Institute
“Women entrepreneurs are equally strong and are able to realize what ever goal they put in their minds.”-Lucia, Accion loan recipient and owner of La Licuadora Restaurant. Miami, FL
7www.accionusa.org
Who is Accion?
8www.accionusa.org
Accion: National Leader Local Impact
We believe that access to capital helps entrepreneurs: Create jobs in their communities Build assets for their families; and Contribute to local economic development
19,000 and 121.2 MM disbursed nationwide!
Fauzia, Accion client and owner of Fauzia Heavenly Delights in Bronx, NYA
Eddie, Accion client and owner of Dardanel Restaurant in Manhattan, NY
9www.accionusa.org
Friends & Family
Personal Savings/ Equity
Loan Sharks
Pawn Shops
Credit Cards
Accion MICROLOANS
Bank/SBA Loans
Credit Continuum
Equity and Investments* Credit cards, Microloans and Bank Loans build a credit history.
Jason, Accion client and owner of a home-based soap
company
10www.accionusa.org
Accion Network
Accion Network represents 30% of micro-loan volume in the U.S.
Established in 1991 as the domestic arm of Accion International, a global microfinance organization
11www.accionusa.org
Who do we lend to?
Professional Services (Office, Med, Educa-tion)20%
Food & Beverage20%
Clothing, Cosmetics, Jewelry & Retail
17%
Transportation15%
Beauty & Salon Services7%
Construction, Repair & Electronics
7%
Entertainment, Media, Telecom & Visual Arts
4%
Wholesale3%
Auto & Vehicle3%
Personal Services (Day Care, Cleaning, Language)
2%Arts & Crafts Production
2%
Manufacturing<1%
65% Latino
40% Women
20% African American
Lyn Genet Recitas, owner of Neighborhood Holistic in Harlem, New York
Carlos Costa, owner of Costa Group Corps in Miami, Florida
Cheryl Smith, owner of Cheryl’s Global Soul in New York, New York
12www.accionusa.org
Strong, Diverse Funding Sources
GRANTS
•Government•Banks•Private Foundations•Individual Donors•Volunteers
CAPITAL
•Low-rate capital from banks•Donations from individuals,
corporations•SBA and Kiva
REVENUE
•Interest and fee income•Public/private partnerships•Referral programs
13www.accionusa.org
Accion’s Products
14www.accionusa.org
Loan Process
STEP 1: APPLYApply and quickly know eligibility through Accion’s innovative Scorecard.
STEP 2: INTERVIEWSubmit documents and get interviewed by a loan consultant to review strengths and provide advice.
STEP 3: REVIEWApplication is reviewed considering: credit, character, collateral/cosigner, cash flow, industry, and loan purpose.
STEP 4: DECISIONLoan is dispersed if approved or client is given advice to improve.
STEP 5: RELATIONSHIPRepayment begins and clients receives ongoing business and financial education.
Heesang Lee, a New York based Accion client and business owner
15www.accionusa.org
Products and Programs
Product Definition
Established Businesses up to $50k
Start-ups up to $30K with outside cosigner
Sprout Loan Home-based/incubator up to $5/10K without cosigner*
Secured Loans $500 and up
Special Programs Women, Veterans, Green, Immigrants, Kiva
*Up to $10,000 for food & beverage businesses in certain geographies
16www.accionusa.org
Basic Requirements
Credit Score over 575 (FICO)
No more than $3,000 in past due debt*
No Bankruptcy in the last year
No Foreclosure in the last 2 years
No late payments on mortgage and rent in the last year
Start Up and Transition Requirements
Market Study and Financial Projections for Start-Ups (ACCION provides templates)
*Except Sprout loan, cannot exceed $500
Natasha, Accion client and owner of Natasha Wozniak Jewelry. Brooklyn, NY
17www.accionusa.org
Required Documents
Under 10k: (if applicable)
• 2 Forms of personal identification
• Most recent utility bill from home &biz
• Past 3 months of personal & biz bank statements
• Mortgage note showing terms
• Market study/biz plan and 12 months
financial projections (start up or sprout)
• Internal financial statements
Over 10k (all above, plus:)
• Tax returns (previous 2 years if available)
“The biggest reward for me is seeing the enthusiasm from the benefits of my business by my clients and employees” .
–Jessie, Accion client and owner of Green City Growers. Boston, MA
18www.accionusa.org
• Loan process: 5-10 business days*
• Terms up to 60 months
• ACH Monthly Payments
• Interest rates: start at 8.99% average 11.99%
• No prepayment penalties
• Payments applied to principle and interest
Affordable Loans
*Once documents are collected
“I’ve attended three mentoring events and am genuinely humbled by the experience,
it’s validation as a small-scale entrepreneur and as a woman to be able to interact with distinguished CEOs and leaders in the fashion industry.”
–Sandra, Accion client and designer at Sandra Baquero talking about the Tory Burch Mentoring Events for Women.
19www.accionusa.org
More than a Loan
One-on-one: we provide coaching throughout the loan process on credit, cash flow, & record keeping.
Online: free webinars, tips, tools, & newsletter create meaningful connections with our clients
Partnerships: teaming up with organizations leverages resources and maximize strengths
“With Accion, it was more than just a loan. Through promotional opportunities, Accion helped to get my business name out there.”
–Kari, Owner of Morris Kitchen and client.
20www.accionusa.org
Strategic Partnerships
21www.accionusa.org
Bank Partnerships
Nelson, Accion client and owner of Florida Atlantic Air Conditioning in Miami, FL
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Samuel Adams Brewing the American Dream
Business Education
Access to Mentors and Networks
Seasonal Product Integration / Catering
Samuel Adams Brewing the American Dream: www.samueladams.com/btad
Sandy’s business is crucial to help provide for her family so when sales went down last summer, Sandy decided to make a change on her summer menu and offer cold slush and drinks and help boost up sales. Sandy’s $2,000 loan from Accion, helped her purchase equipment to speed up production and boost sales.
-Sandy, Accion client and owner of Lulu’s Sweet Shoppe. Boston, MA
23www.accionusa.org
Tory Burch
Educational Events
High profile mentors
“I have been so impressed with the mentors at the events. Every single one of them has said something memorable to me that has inspired action in my business, I can see that they really care and want to help us succeed.”
Natasha, Accion client and owner of Natasha Wozniak Jewelry. Brooklyn, NY
24www.accionusa.org
Kiva.org
Loans up to $10,000
Increased lending flexibility
Publicity
Luis's road to self-employment was not easy. Once
unemployed and homeless, Luis's life changed when he found work making deliveries for a local bakery. On the morning of September 11, he made his usual delivery to the World Trade Center when his truck got lost in the rubble of the failing buildings. Through Kiva, Accion lent Luis the money need to get his business back in shape.
-Luis, Accion client. New York, NY
25www.accionusa.org
Loans for Veterans (NY Only)
Low rate up to 8.99%
Increased lending flexibility
Coaching and mentorship through SCORE, Veterans across America, and SBS
26www.accionusa.org
ACCION’s Online Presence and Reach
• Over 6,000 Twitter followers twitter.com/accion_usa
• 2,000 people “like” our Facebook page www.facebook.com/accionusa
• 30,000 subscribe to our monthly newsletters www.accionusa.org/email
• Over 40,000 visits a month to our website www.accionusa.org
• Partnership with http://dinero.univision.com/pequena-empresa
27www.accionusa.org
A Win-Win-Win
• Accion can make a difference for your clients
• Partnership opportunities
• What makes a successful referral?
MicroloansMacro-Impact
Andy, ACCION client and owner of Cambridge Art and Frames in Cambridge, MA
28www.accionusa.org
To Refer a Business Owner
Contact YOUR NAME at XXX-XXX-XXXX and [email protected]
Refer to online application at www.accionusa.org/apply *
Have client fax in paper application to XXX-XXX-XXXX
* Promote use of your unique referral ID and Accion will track and provide feedback.To get a unique ID code, contact us!