LOCO DAY 1

Loan Officer Job Description

• Application process (1-2 weeks)• -analyze application • -check reference and do background checks• -compile list of all helpful resources (beyond a loan)• -present case to allocations committee for vote

• If loan is approved…

• Banking • -draft terms of a agreement• -collect payments• -keep records/receipts• -deliver payments and report to accounting team• -update database

• Social Work– collaboratively (with other loan officer, large group and borrower):– identify problems and assets – create and implement short-term and long-term solutions

• provide what background knowledge you have • connect borrower to resources (example on reverse)•

Micro-finance institutions in the United States offer:

• Loans….-max out at $35,000

-average at $5,000

• used for…

-small businesses

-often as a supplement to other jobs

-1/3 home-based-1/3 office/store-front-1/3 artisans

TARGET POPULATION

• -most often INDIVIDUALS, not peer model

• -DEMORGRAPHIC: minorities, recent immigrants, women and the disabled with incomes at the poverty line (the working poor)

• -people that don’t have access to credit

In practice: • -65% women• -55% minorities• -60% below poverty line, but only 13% live in poverty -average family income is $24,000

Other Services

• -small seed grants• -IDAs Individual Development

Accounts (match funds for savings for housing, education and small business)

• -training (business plans, prepare the borrower for a loan, tax preparation, marketing, use of technology, business finance)

How are MFIs (micro-finance organizations) doing?

from a financial standpoint…

• -92% repayment

• -1% of potential clientele is being reached ($13,000 out of 10.8 million)

• -not financially sustainable- operation costs are too high

-from a “social performance measurement” standpoint…

self-esteem, morale- what comes from being taken seriously, and starting your own business

“The [ACCION staff members] have been very helpful. If you surround yourself with negative people you will end up being a very negative person. But if you get hooked up with positive-thinking people that believe in you, it just makes you feel good about yourself.”

ACCION

• offers….- a line of credit-credit building loan

-does not finance pure start-ups

• -divides banking services from training services• -cooperates with mainstream banks- they refer to ACCION• -funding: banks, government agencies, private foundations, church groups,

investors

• -the future for ACCIÓN• -internet lending• -consolidate small organizations, and streamline• - reach more people•

Volunteers needed:

Oct 8. Project Homeless Connect

• 9am -3pm

• resume building workshop and or job search