Lending. Supporting. Inspiring.

Accion:Leader in U.S. Microfinance

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AGENDA

What is U.S. microfinance?

Who is Accion?

Accion Products

Strategic Partnerships

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What is U.S. Microfinance?

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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

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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

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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

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Who is Accion?

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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

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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

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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

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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

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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

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Accion’s Products

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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

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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

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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

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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

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• 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.

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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.

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Strategic Partnerships

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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

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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

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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

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Loans for Veterans (NY Only)

Low rate up to 8.99%

Increased lending flexibility

Coaching and mentorship through SCORE, Veterans across America, and SBS

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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

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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

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To Refer a Business Owner

Contact YOUR NAME at XXX-XXX-XXXX and xxxxxxx@accionusa.org

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!