outreach part one
TRANSCRIPT
How We Lend.
Community and Partner Outreach Part 1
Microfinance bridges the ever-widening credit gap,and is especially important in today’s economy.
• Access to Credit: 10 million microbusinesses nationwide face difficulty obtaining capital from conventional sources.
• Alternative to Predatory Lending: Predatory lenders charge avg. annual interest rates over 300% and accounted for over $42 billion in loan volume in 2008.
Why Microfinance?
Impact of Microenterprises
Microenterprises…
• Make up 88%1 of all U.S. businesses• Create 900,0002 jobs annually• Increases the average household income by 17%3
• 24 million people in the U.S. are microentrepreneurs2
1Association for Enterprise Opportunity (2009), “Microenterprise Business Statistics,” AEO. http://www.aeoworks.org/index.php/site/page/index.php/site/page/category/research/#MEBS.
2 Washington State Microenterprise Association (2009). “Microenterprise in the U.S. and Washington State.” http://www.sneda.org/documents/MicrointheUSandWashington.pdf
3 FIELD (2008). “Microentrepeneurs and their businesses: 2008 Microtest Outcomes.” http://www.fieldus.org/MicroTest/MTOutcomes08FactSheet.pdf
About ACCION USA
Since 1991, ACCION USA has been committed to building strong, vibrant communities by providing low-to-moderate income business owners with access to capital and financial education.
The ACCION USA Portfolio
• More than 19,000 loans have been disbursed, totaling approximately $123MM
• Average loan size of $7,500
• 92% historic repayment rate
• 98% survival rate for established businesses
• 89% survival rate for start-up businesses
Professional Services (Office, Med, Ed-ucation)20%
Food & Beverage20%
Clothing, Cosmetics, Jewelry & Retail
17%
Transportation15%
Beauty & Salon Services7%
Construction, Repair & Electronics
7%
Entertainment, Media, Telecom & Visual Arts
4%Wholesale
3%Auto & Vehicle
3%Personal Services (Day Care, Cleaning, Language)
2%Arts & Crafts Production
2%Manufacturing
<1%
65% Latino
20% African American
40% Women
• 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
Source: 2009 Impact Study and ACCION USA Portfolio as of 12/31/2010
ACCION Client Snapshot
ACCION USA’s Impact
• Creates an average of 2.4 new jobs per microenterprise
• ACCION USA borrowers pay 24% more than the national minimum wage of $9/hr
• Sustainability! ACCION USA’s business survival rate is 98% for established businesses
1.ACCION USA (2009). “Sustaining businesses and jobs amid the financial crisis: Outcomes Data in the ACCION USA Footprint, 2007-2008.” http://www.accionusa.org/Uploads/FileManager/Publications/ACCION%20USA_2009%20Impact%20Study.pdf 1
• Samuel Adams “Brewing the American Dream”
• Tory Burch Foundation• Count Me In for Women’s
Economic Independence• Banking partnerships
Innovative Partnerships
• ACCION partnered with Kiva in 2009 to raise awareness of U.S. microlending .
• By sharing stories about their businesses to the online community, entrepreneurs receive support for their microfinance efforts through Kiva’s website (www.kiva.org).
• The stories inspire and educate the public, enabling ACCION to raise funds and continue lending to small business owners across the country.
Partnerships - Kiva
Community Outreach Volunteers…• are committed to advancing the mission of
ACCION USA.
• work closely with the ACCION USA Loan Consultants (LC’s) to grow and strengthen our lending portfolio.
• provide assistance throughout all stages of the micro lending process, from outreach and intake to final disbursal.
• gain valuable knowledge about US microfinance and are instrumental in furthering the mission of ACCION USA, to reach the individuals who need us most.
What You Will Learn
• Define ACCION USA’s loan process from start to finish for “start-ups” and existing businesses.
• Describe the variables that influence microloan approvals .
• Explain the value of ACCION USA’s online financial literacy resources to clients.
• Identify the location and value of ACCION USA’s online resources for field representatives.
One of Many Success Stories
• “I enjoyed my work, but the market had its ups and downs, which I couldn’t control. I decided to find steadier business.”
• Went “green” to tap into a growing market
• Expanded her business with the help of ACCION USA
• Result: Eco-friendly and continued sustainability
Doubles CleaningAntioch, TN
Raquel Sierra-Pinto
Interested in learning more about ACCION USA “green” loans? Click here for more information.
What’s Next?
Congratulations!
You have successfully completed Part One!
In Part Two, you will:
• Apply your knowledge• See examples of the ACCION USA loan process in
action