Lending. Supporting. Inspiring.

ACCION USA

Microfinance at Work in

the United States

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Our Mission

ACCION USA empowers entrepreneurs to invest in their business, family and community through financial literacy and

capital.

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ACCION USA History and Portfolio

» ACCION USA offers loans from $500 to $50,000 for small business

and credit development purposes at interest rates ranging from 8.99

– 15.% And Financial Education tools and resources.

» ACCION USA has lent $122 million since 1991: With

approximately 3,000 active borrowers across 46 states.

» ACCION USA has branch locations in New York, Boston, Atlanta,

and Miami and is able to serve the business coast-to-coast through

our online application

» The ACCION Network has supported over 36,000

microentrepreneurs with $250 million. This network of licensees

serving TX, LA, NM, CO, AZ, IL, and CA.

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Portfolio Demographics

40% Women

65% Latino 20% African American

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Client Snapshot

40% Women

65% Latino 20% African American

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

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Portfolio by Industry

Professional Services (Office, Med, Education)

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%

Clients work mostly in food & beverage, retail, transportation and beauty

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Why are we needed?

Over 850,000 microenterprises account for over 92% of privates-sector businesses in NYC, and many cannot access capital because…

• Lack of credit or low credit score

• Some industries are considered to be high risk

• Lack of financial documentation or records

• Business is informal—no commercial track record

• Loan amount needed is too small

• Language Barriers

Source: Microenterprise Employment Statistics published by the Association for Enterprise Opportunity (AEO)

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The need for microfinance in the U.S.

• 40 million households (106 million people) have limited access to mainstream financial institutions in the U.S. and 28 million people are completely unbanked.

• Microenterprises (5 employees or less) account for approximately 18% of employment in the U.S. and create 900,000 jobs a year.

• Predatory lenders charge average annual interest rates over 300%— and accounted for over $42 billion in loan volume in 2008.

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Decision Factors

Credit History Credit Score 575 and above Relatively low balances Healthy % of available credit Open accounts that are current. Zero FICO score is acceptable for credit start loans

CharacterReferences: residential and commercial landlords, supplier, client and/or personal references.

Cash FlowAn examination of sales versus expenses must demonstrate capacity to repay loan. Business and personal bank statement review.Start-ups must present 12 months of financial projections.

Loan PurposeDetailed list of expenditures.Contributes to the positive growth of business. Loan uses that will clearly improve the revenues and/or profits of the business

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Background Information Prior Learning – Loan Process

STEP 1: Make ConnectionAnd Pre-Screen Client

STEP 2: .Formal Pre-Approval Process and begins Loan Application

STEP 3:Client submits complete loan application. Loan Consultant interviews the client.

STEP 4:Loan Application is sent to Underwriting Team

STEP 5:Underwriter Approves Loan and Loan is Dispersed

STEP 6:Loan Enters Repayment

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Our Impact

• We create sustainable businesses: The business survival rate among ACCION USA clients is 98% for established businesses and 89% for start-up businesses.

• We create employment in low-to moderate-income communities: On average, each ACCION USA small business loan recipient creates 3 jobs (including the borrower).

• We create fair wages: Jobs created by ACCION USA borrowers pay 33% more ($10.80/hour) than the federal minimum wage ($7.25/hour).

• We improve their quality of life: Clients reported a 19% median increase in take-home pay in the midst of economic distress.

Source: 2010 MicroTest Outcomes Survey in partnership with the Aspen Institute

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How to be involved?

• Attend the Microfinance USA

conference in New York City, May 23-

24th 2011- Register today!

• Tell business owners about ACCION

USA- they can apply online at

www.accionusa.org

• Sign up for our news about upcoming

events and important news in

microfinance!