Accion:Resources for Entrepreneurs

Mario CardonaLoan Officer

ACCION Texas – Who We Are Our History Our Products and Services Issues Business Owners Face Creating a Roadmap to Success Business and Financial Plans Tips for Preparing to Access Capital Resource Partners

Overview

Who We Are

• The mission of ACCION Texas is to provide credit and technical assistance to small businesses that do not have access to loans from commercial sources, and to provide leadership and service to the micro lending field on a national level.

A 20 year non profit that is a CHAMPION AND SUPPORTER of small business by PROVIDING small business LOANS and business

EDUCATION.

Our History

Over 15,000 loans provided with over $160M deployed in 20 years.

Our Products and Services

To achieve our mission we provide:•Loans:

– Microloans ranging from $500 to $50,000– Small Business loans: $50,001 to $250,000 with

local funds and as a designated Community Advantage 7a lender

– SBA 504 program in Texas market– Special Funding Programs for Veterans

•Business Education: – Business consultations & business seminars (in

house and with partners)•Innovation:

– Micro lending Management System

Always on your mind….

Accounting and Financial Systems

Inventory

Equipment

Insurance/Bonding/Surety

Marketing/Advertising

Expansion of Work Force

Creating Your Roadmap to Success

expansion

execution

planningstrategyanalysis

idea

Are you purchasing an existing business, franchising, creating a new business or is the business already established?IntroductionBusiness DescriptionManagement and OperationsProducts and ServicesIndustry and CompetitionCustomersMarketing and Sales Strategy

and last, but not least…

The Business Plan

Start – Up Needs

Fixed Assets•Buildings•Equipment•Furniture & Fixtures•Vehicles

Operating Capital•Start-up payroll•Rent & utilities/deposits•Initial Inventory•Licenses and permits•Working Capital

The Financial Plan

Fixed Monthly Expenses

•Advertising•Bank fees•Insurance•Payroll•Rent•Supplies•Taxes•Utilities•Loan Payment

What are LENDERS

looking for?

Capacity: Do you have the ability to repay the loan successfully? (Debt to Income <50%)

Character: What is your background, experiences, and expertise? Is your business related to that experience?

References are required.

Credit History: What does your credit history show? Collection? Charge Off? Bankruptcy? Judgment?

Collateral: What type of assets can you pledge to secure the loan? What items have you purchased for your business?

Commitment and Motivation: To improve your business and improve your credit

Conditions: Do you have a clearly defined purpose of how the loan will be

used for your business? How is the industry and economy doing?

What does your Business Plan look like?

The C’s of Accessing Capital

Tips: Preparing for Financing

• Prepare a Business Plan • Review your credit report• Understand your financials• Create a sales and marketing plan• Do market research• Know who your target customers are• Create an advisory group – CPA, business attorney and banker

Tips: Preparing for Financing cont.

Gather Your Financials – current YTD/historical Financial Projections – start ups and young

businesses Gather Current Contracts Gather proof of upcoming contracts Bank Statements (3-6 months) Tax Returns (1-3 years) DBA or Corporation Documents Letters of Recommendation

Veteran Owned Businesses

• In the last 5 years, Accion Texas has made 434 loans to Veteran business owners, totaling $6,339,199

• In 2014 Accion Texas has made 86 loans to Veteran business owners, totaling $1,185,209

• Special veteran loan funding programs may be available

Build Your Team

Our Differentiating Factor

Full one stop shop for aspiring or established business owners. * Support individuals build and establish their credit * Serve as a stop gap * Efficient application process * Creative with collateral * We utilize an internally designed risk formula * No minimum credit score requirement * Interest Rates range from 10.5% to 18% (possibility of lower rates with different loan programs)

Questions?

Mario Cardona : 1-888-215-2373 ext. 1104: mcardona@acciontexas.org: www.acciontexas.org

acciontxinc @Accion_TX