Lending. Supporting. Inspiring.

ACCION USA

GreenMicroloan Program

Elizabeth Garlow

Business & Product Development, ACCION USA

2www.accionusa.org

Who is ACCION USA?

• A nonprofit, community based organization providing access to capital and credit education with over 20,000 clients served with loans averaging $9,000.

• We help individuals strengthen their business, increase their profits, andcontribute to the economic growth of their communities.

• And now, AUSA will help small business improve the environment!

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Agenda

• Why Green?

• How do ACCION USA Green Loans work ?

• Green Resources and Partners

• Additional Q & A

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Triple Bottom Line – greater impact per loan

�PEOPLE

�PROFIT

�PLANET

Why G

reen?

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AUSA Already Provides Green Loans!

� With a $13K AUSA loan, Raquel bought into a green cleaning franchise

using eco-friendly products.

� A $12K AUSA loan to a bike shop helped Andrew invest in marketing

and purchase extra equipment

� A business producing biodiesel products used an $8K AUSA loan to

purchase inventory and relieve the owner dependency on credit cards.

� Marco owns a construction business and used a $12K AUSA loan to

purchase an eco-friendly insulation system, accessing gov programs.

� Ricardo owns a commercial cleaning company and used a $20K

AUSA loan to purchase an eco-friendly carpet cleaner. While the

machine is expensive, it is opening up a whole new market.

Why G

reen?

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AUSA puts “Green” in reach!

AUSA addresses clients’ concerns by offering:

� Financing for the upfront or ‘gap’ costs of going green. We will use cost

savings and rebate programs to strengthen applications

� Support navigating the energy audit process

� Access to free training and educational resources

� Guidance around available incentives, rebates and solutions to reduce

expenses and attract new customers

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How do Green Loans work?

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Green Loan Definition

A “green” AUSA microloan is one

that helps entrepreneurs

incorporate green products,

services or energy saving

principles into their business

operations.

How Green?

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What Qualifies as “Green”?

Investing in Energy / Water Efficiency Measures:

� New Equipment (refrigerators, ovens)

� Facilities upgrades (fluorescent / LED lighting, heating / water

system upgrades, other small appliance upgrades)

Providing Green Services:

� Services or industries that are “green” in nature (weatherization,

eco-tourism, alternative transportation)

Offering / Using Green Products:

� Organic/sustainable forestry/local products

� Recycled materials

� Alternative Energy-related products (biodiesel, solar panels)

How Green?

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Energy Efficiency Loan Benefits

How Green?

$4,33642

$3,71736

$3,09730

$2,47824

$1,85818

$1,23912

Potential Loan IncreaseTerm of Loan

With an Energy Audit …

$103 (14%)Avg Mthly Savings

$753Avg Mthly Utility Bill

$9,036Avg F&B Loan

We add cost savings to the applicant’s monthly income, improving their cash flow and their chances of getting approved.

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Green Resources and Partners!

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Green Entrepreneur Resource Center

ACCION USA created an online ‘Green Entrepreneur

Resource Center’ with:

� Articles and Tip Sheets

� Resource Center for Green Entrepreneurs with links to partner organizations

ACCION USA is engaging our partners as guest experts in a webinar series:

� Branding Your Business for the Green Market

� Making your Business Energy Efficient

� Green Marketing 101

� All About Green Business Certifications

� Sustainability and Leadership (June 22nd!)

� Comenzando un negocio sostenible (June 24th)

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Partnership / Referral Examples

Sell G

reen!

NYSERDA, Mass CEC, EPA (Energy Star)Gov Agencies

DSIRE USA, Nat / Local Restaurant Associations,

Sustainable Business Networks, and YOU!

TA Providers

We’d like to offer green discounts (ex. Green

Depot 10% Discount)

Distributors /

Manufacturers

Work together with energy auditors to help

streamline the process for clients

Energy Auditor

/ Utility

AUSA Partners with organizations to help small

businesses access the $ they need

Banks & Com

Orgs

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Interest Rates

NonePre-penalty Fee

3-6% of the loan amountClosing costs Fees

$30 If Loan is ApprovedApplication Fee

FEES Financed into loan

TERMS up to 60 Months

Equal monthly payments of principal and interest for Growing and Established Businesses

Range in size between $500 - $50,000 or up to $30,000 if not yet profitable

Green Loans

APR 8.99-15.99% for up to $50,000 (8.99% in New York)Green Loans

Rate decreases with each additional loan.Renewal Loans with perfect repayment on previous AUSA loans

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Requirements

Green Loan Program Eligibility:• Energy savings loan requires an energy audit• Equipment purchases must be energy efficient certified• 50% of the loan purpose must be green

General Business Loan:•Six or more months in operation•Credit score of 575 or higher with less than $3,000 in past due debt• No bankruptcies in the past 12 months, no foreclosures in the past 24 months, owning no more than 4 properties• No late payments on rent/mortgage in the past 12 months• Sufficient cash flow to comfortably support monthly loan payments

Additional for Start-up Loans:• Cosigner may be required• If not yet profitable, borrower or spouse must have outside income • All required licenses in place• Market study and 12 months of financial projections

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For More Information…

If you have questions about our green loan program, would

like to apply for a green loan or would like to make a green

loan referral:

Please contact Renzo Mendoza-Castro at

(617) 616-1551 or rmendoza@accionusa.org

• Visit www.accionusa.org/green

• Green workshops listed at www.accionusa.org/workshops