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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Fast Facts about ACCION USA

History:

• Pilot program in Brooklyn, NY in 1991

Branch Locations:

New York, Boston, Atlanta, Miami and Internet loans

Dollars lent:

• 122 Million

Loan size:

• $500-$50,000; average $7,500

Interest rates:

8.99-15.99%

Historical Repayment Rate:

Over 92% repayment

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Portfolio Demographics

40% Women

65% Latino 20% African American

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ACCION USA Portfolio

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%

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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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Why are we needed?

There are over 20 million microenterprises in the United States, but less than 1% are receiving credit or business assistance

• 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: Field Program (The Aspen Institute)

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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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Loan Requirements

• Have a credit score of 575 or more.

• Have not have declared bankruptcy in the past 12 months or foreclosure in the past 24 months

• Have not had any late rent or mortgage payments in the past 12 months

• Be up-to-date on all bills

• Not have more than $3,000 in past due debt, generally acquired under emergency circumstances (such as layoff or illness)

• Exhibit steady cash flow and the ability to support monthly loan payments.

• Be able to provide a cosigner, if needed

• If you have a mortgage, it must be fixed-rate or an adjustable rate mortgage that does not adjust during the term of the loan.

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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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Stories of Success-Partnerships

1 The Small Business Share of GDP, Katherine Kobe, Economic Consulting Services, LLC; 2 The Small Business Administration (2006)

Luis Zepeda Alvarez An ACCION USA borrower featured on Kiva

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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!