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