1 Located at 404 Euclid Avenue, ACCION San Diego is an independent, 501 (c) (3) non-profit organization that provides economic opportunity to microentrepreneurs who lack access to traditional forms of credit. With loans ranging from $300 to $35,000, ACCION San Diego assists small and home-based business owners, many of which are run by minorities and people with lowto-moderate income levels. (619) ,
2 More About ACCION San Diego Our Loan Program Services Business loans ranging from $300 to $35,000, quick loans under $2,000 Free business assistance Credit reporting and referrals to counseling services Access to a resource library Publicity/networking opportunities Financing within approximately two weeks (within 48 hours for Quick Loans) Life and disability insurance Where We Get Our Funding Private donations Grants from foundations, companies & government Grants or low-interest loans from banks Why Microentrepreneurs Come to Us Small loan size Past credit challenges or no credit history Start-up businesses (less than two years) Language barriers Limited financial records Lack of collateral What Our Clients Use Loan Money For Equipment, inventory and supplies Renovations and business expansion Basic working capital etc Our Eligibility Requirements Work/live in San Diego County No bankruptcy in the past year Must show the capacity to repay the loan Must be 18 years of age Business must be a legal activity No outstanding liens or judgments Must have documented business income (i.e. receipts, invoices) Our Historical Performance Total number of loans disbursed: more than 2,700 Total dollars disbursed: over $16 million Average loan size: ~$10,000 Female clients: ~45%, Minority clients: ~60%
3 ACCION San Diego s Mission & History Our Mission The mission of ACCION San Diego is to create increased income and job stability for primarily low-to-moderate income, self-employed men and women by providing credit and other support services to these small business owners. Through loans and business support, ACCION San Diego has been helping microentrepreneurs strengthen their incomes, create additional employment and contribute to the economic revitalization of their communities since Our History Launched in May of 1994, ACCION San Diego is an affiliate of ACCION International, a worldwide leader in micro-enterprise development. Founded in 1961 in Latin America, ACCION International and its licensees have microlending programs throughout the United States, Latin America, the Caribbean and Africa. Building upon the experience of ACCION International, ACCION San Diego developed a successful lending methodology tailored to local microentrepreneurs enabling them to serve as catalysts for the economic revitalization of San Diego s neighborhoods. ACCION San Diego is committed to an integrated approach to the community and works with strategic partners in local government, community-based agencies, corporations, and banks. These collaborative efforts enable ACCION to maximize resources, minimize duplication of services, and cast a wider net reaching those in need. ACCION San Diego is also a certified Community Development Financial Institution (CDFI) from the U.S. Department of Treasury, and is a member of the ACCION U.S. Network collaborating and sharing best practices with ACCION offices in Chicago, New Mexico, New York, Texas, New England, Boston and Miami. Accomplishments ACCION San Diego has lent over $16 million to more than 1,700 microentrepreneurs since inception in December of We have approved more than 2,700 loans while maintaining good portfolio quality. Each year the ACCION San Diego staff provides technical assistance and business information to more than 1500 business owners who approach the program for services. ACCION San Diego maintains a close relationship with our clients and we are proud to say we have achieved these accomplishments with a staff of 10 and support from volunteers.
4 The Need for Microcredit ACCION San Diego targets self-employed individuals and microbusiness owners, many of which are run by women, other minorities and people with low-to-moderate income levels. Over 60 percent of our total client base identifies themselves as part of an ethnic minority group, and approximately 45 percent of ACCION clients are women all of whom are in need of micro-credit. The Southern California regional economy is growing at a faster rate than those of the country as a whole, yet most of the jobs with the most growth in California (fast food, retail services, grocery, health care, janitorial and security industries) pay less than a livable wage. Struggling to adjust to the competitive global economy, many employers are shifting to part-time workers, non-standard schedules, contract labor, suburban worksites (which there is minimal or no public transportation) and fewer employee benefits. Faced with this wage situation and cost of living (which is 41% higher than the national average) many low-to-moderate income persons are turning to self-employment as an alternative. Cumulatively, microenterprises employ thousands of people, feed and educate their families, and sustain the vital informal economic infrastructure of Southern California s older urban neighborhoods. These enterprises are owned and operated by hardworking men and women whose ethnic and cultural backgrounds reflect the community s rich diversity. ACCION San Diego s clients may be seamstresses, daycare providers, carpenters or hairdressers, all working hard to earn an income that will help them build a better future. Even for these determined microentrepreneurs, opportunity is limited by the difficulty of accessing business credit and technical assistance. Obtaining a loan from a bank is almost impossible for a variety of reasons such as small loan size, poor or no credit history, language barriers and limited financial records. Without access to working capital, micro-entrepreneurs have little chance of strengthening or expanding their tiny businesses. In order to maintain and grow their microbusinesses, ACCION San Diego borrowers often need very small loans to acquire basic working capital, to make improvements to their workspaces, to purchase equipment, and/or to buy inventory in bulk quantities. Once these microentrepreneurs have better established their business, many are able to receive larger loans from traditional loan sources such as banks and credit unions. We also encourage our microentrepreneurs to improve their business acumen. As their businesses grow, and eventually require larger amounts of capital from mainstream financial institutions, they will need to develop the formalized financial records and management skills required by these lenders. To assist our clients in this area, ACCION San Diego provides technical assistance, both through staff members and partnerships with community organizations.
5 Methodology ACCION San Diego has developed a lending methodology that enables underserved entrepreneurs to access credit, while maintaining a high quality loan portfolio. The program s character-based lending methodology takes into account the borrower s integrity, reliability, and entrepreneurial spirit when evaluating loan applications. The program prides itself on being accessible and on providing capital quickly. ACCION San Diego s loan committee meets on a weekly basis to review and process completed loan applications. Stepped Loan Amounts: ACCION San Diego s provides business loans from $300 to $35,000. These microloans enable many low-to-moderate income borrowers to receive the credit they need to build their business and family incomes, while maintaining a manageable risk level and reasonable payment schedule. Collateral Requirements: ACCION San Diego s flexible collateral requirements make credit accessible even to clients with few business and personal assets. ACCION San Diego accepts nontraditional forms of collateral such as automobiles, equipment, and other business inventory. Co-signer Requirements: All loans are evaluated on a case-by-case basis with co-signers required depending on the level of risk. Pricing: ACCION San Diego s pricing structure, which includes incentives for timely repayment, takes into account market interest rates, our costs of lending, and our goal of reaching program selfsufficiency. Interest rates are fixed and range from 12% to 18% depending upon the client s risk level. Terms: Loans terms vary from 3 to 60 months with equal monthly payments. As loan amounts increase, the loan term increases, enabling borrowers to maintain reasonable monthly payments as they move to larger loan amounts. Borrowers are also permitted to prepay their loan balance without penalty at any time after the first three months of payment. Credit Insurance: ACCION San Diego offers life and disability insurance to cover the borrower s debt, relieving the family of the debt burden, in the event that the borrower became incapacitated due to poor health or injury. The premium is included in the regular monthly payments. Business Training: ACCION San Diego s clients are often quite accomplished in their specific industry, but may lack the necessary expertise for business management and growth. They may be excellent childcare providers or skilled contractors, for example, but do not have training in basic financial reporting. ACCION has found that the most effective way to help borrowers develop their business skills is to offer individualized training on an as-needed basis by our staff, volunteers or partner organizations. All of our incoming clients receive basic technical assistance from loan officers during the intake process, in addition to our partner SBDC counselor. If clients require additional assistance during the intake process, we refer them to partner organizations who specifically offer assistance in marketing, business planning, government contracting, manufacturing, accounting and e-business. ACCION San Diego hosts and facilitates business workshops regularly for clients on educational topics and offers opportunities for publicity and networking.
6 ACCION San Diego s Awards & Recognition 2011 CDFI Award ACCION San Diego was awarded a $600,000 grant from the U.S. Department of Treasury s Community Development Financial Institutions Fund, the largest single grant that ACCION San Diego has ever received from CDFI. Of 393 organizations that applied, ACCION San Diego was one of the 155 organizations across the country that was awarded and is the only organization based in San Diego CNN Money Top 10 Microfinance Companies ACCION San Diego was recognized as one of the Top 10 Microfinance Companies by CNN Money based on the number of loans it disbursed, and data compiled by the Aspen Institute. ACCION International 50th Anniversary Gala Event ACCION San Diego s client, Lidia Calzado, was selected from among 10 ACCION U.S. Network clients to represent the work of ACCION in the U.S. in a world-wide celebration of ACCION s impact over the last 50 years in New York. After receiving a loan and training from ACCION San Diego, Lidia has increased her income, developed business knowledge, and has improved her overall self-sufficiency, independence, and level of community contribution. CA Economic Development Lending Initiative (CEDLI) and CA Resources and Training (CARAT) Outstanding Performance in Community Development Lending Award ACCION San Diego was recognized for its impactful work in supporting small businesses in San Diego County with access to capital through its microloan program as a Community Development Financial Institution (CDFI). The award was presented and the Annual CEDLI/CARAT luncheon on Oct. 12, 2010 at the Millennium Biltmore Hotel in Los Angeles. Urban League of San Diego County s 2010 President s Small Business Award - ACCION San Diego was presented this award at the Annual Equal Opportunity Day Diversity Summit and Awards Luncheon onwednesday, October 13, 2010, at the Hilton San Diego Bayfront. The President s Small Business Award is given to an organization that has made a significant contribution to the community, in one of the five programmatic thrust of our Urban League Movement, significantly impacts and/or promotes diversity initiatives in its business Innovation in Technical Assistance (TA) Performance and Service Award ACCION San Diego s Executive Director, Elizabeth Schott, was presented this award for her demonstrated outstanding performance as a participant in CARAT s TACP Executive Institute trainings, and for the service ACCION San Diego has provided to the economic development community California Association for Micro Enterprise Opportunity (CAMEO) Job Generator Award ACCION San Diego s Executive Director, Elizabeth Schott, was presented this award for her assistance to the San Diego community in guiding microentrepreneurs with the expansion of their businesses to create jobs in San Diego. In 2008, ACCION San Diego generated and/or maintained over 900 employment opportunities in the San Diego area. State Senator Christine Kehoe presented Schott with the CAMEO award at the annual meeting in Sacramento 2009 Small Business Administration Community Service Award ACCION San Diego was named the recipient of this award, recognizing the organization for exemplary service and
7 extraordinary assistance, as a micro-lender, instrumental in the growth and success of San Diego small business and economic development Community Investment Leader of the Year ACCION San Diego was presented with the award by The San Diego County Hispanic Chamber of Commerce (SDCHCC) during the Iluminada Gala in April The award recognizes a financial institution that shows leadership and commitment to community advancement, support and presence in the historically underrepresented communities. Four-Star Charity Navigator Award 2004, 2005, 2006, 2008, 2009, 2010 ACCION San Diego received the highest 4-star rating for sound and fiscal management from Charity Navigator. The rating recognizes ACCION San Diego as an exceptional non-profit which allocates over 90% of its organizational budget towards the microlending program, ranking the organization highest among its peers in efficiency and capacity. Comerica Revolving Grant Fund of $250,000 In September, Comerica Bank announced ACCION San Diego as the recipient of a $250,000 revolving grant fund. The grant will be used to support the microlending program, giving ACCION funds to provide more small business loans to hard working microentrepreneurs. We are happy to have Comerica Bank as a community partner and we want to extend our appreciation for their continuous support of our program. Multicultural Heritage Award Finalist San Diego Business Journal 2005 These organizations were recognized for their commitment to diversity in the workplace and community. ACCION San Diego was one of 50 finalists. Neighborhood Builders Award Bank of America 2004 From 30 markets nationwide and 2,500 applicants, Bank of America awarded 60 grants to two non-profit organizations in each market who work to promote vibrant neighborhoods and contribute to distressed communities. ACCION San Diego was honored as one of the two recipients in San Diego of the $200,000 multi-year grant, as well as leadership training for senior staff members. ACCION San Diego is using this money to expand outreach efforts, update technology and leverage partnerships in the community. Strategic Partner Award Citibank 2004 This award was given to ACCION San Diego to recognize the strategic partnership with Citibank and their continuing support for ACCION s mission and lending program. Top 25 Social Capitalists Award Fast Company Magazine, January 2006 For the third year running, ACCION's pioneering role in microfinance was recognized for generating tangible results in fighting poverty by bringing a full range of financial services to the poor. The Fast Company/Monitor Social Capitalist Awards are the first of their kind - quantitatively measuring a group's innovation and social impact, as well as the viability and sustainability of its business model. Mark Vamos, editor of Fast Company commended ACCION s work, We applaud the efforts and business acumen of ACCION which, well beyond its dedication to scalable solutions for poverty alleviation, is a business-oriented organization of vision worthy of imitation in both the non-profit and for-profit sectors. America s Top 100 Philanthropies Worth Magazine, December 2001 ACCION was named one of the nation's top charitable institutions in the December 2001 issue of Worth Magazine. Worth's "America's 100 Best Charities" list was chosen from over 800,000 nonprofit organizations in the country and is based on six months of research into financial statements, mission fulfillment and
8 impact evaluations. ACCION was one of 21 organizations listed in the "Relief and Development" category. Presidential Award for Micro Enterprise Development President Clinton, 1997 President Clinton honored ACCION and its U.S. Network with one of the first Presidential Awards for Excellence in Microenterprise Development for its success in demonstrating the viability of micro lending in the United States.
9 Meet Our Clients Mario Lewis, Owner of Imperial Barber Shop in Southeastern San Diego With a desire to bring back the old school community barber shops, Mario Lewis graduated from barber school in August 2006 and opened Imperial Barber Shop. The shop quickly became a hot spot in the neighborhood for not only haircuts and shaves, but regular domino tournaments and social visits. Lines formed outside the small shop and customers were often waiting too long for Mario s liking for their haircuts. He decided it was time to expand and approached various banks for a small loan to increase his booth capacity, but to his dismay, he was turned away empty handed as a new business without a strong credit history. In 2007, Mario met ACCION San Diego and was able to receive a $2,000 loan; just enough to purchase three new barber chairs which allowed him to increase his business efficiency. Shortly thereafter, the space next to his shop came available and he approached ACCION in 2008 to refinance his loan to $9,000 so he could expand to the adjacent location. Using the money for construction, additional equipment, marketing and expansion, Mario and his customers could not be happier with the larger shop and traditional barber decor. Thanks to ACCION San Diego s loan program Mario s business has doubled in size, his credit has improved more than 60 points and he has truly brought back the local feel of a neighborhood barbershop. I now employ nine members of my community and wouldn t have been able to do it without ACCION, says Mario.
10 Meet Our Staff at ACCION San Diego Elizabeth Schott, Executive Director. Ms. Schott joined ACCION San Diego in 2004 and as Executive Director is currently responsible for overall developmental and operational areas of the organization, in addition to board development, human resources, and fundraising. She brings ten years of project and organizational development, strategic marketing and public relations experience to the organization. When she first joined the ACCION team, she worked as Marketing Coordinator and Director of Operations until taking on the role of Executive Director in early Prior to ACCION, Ms. Schott worked with various public relations, marketing and event firms where she managed client portfolios, campaigns and communication efforts for primarily small businesses and non-profit organizations. She has participated in the small business organizations and committees including service in Net Impact, the SD Chamber Small Business Advocacy Committee, SD Microfinance Alliance, the Torrey Pines Bank Community Reinvestment Board, the Comerica Community Advisory Board and the CA Association for Microenterprise Opportunity (CAMEO) Board of Directors. She received her B.A. in Communications with a Minor in Spanish from the College of Charleston in SC. She is also currently a selected member of the Fieldstone Foundation s Executive Learning Group Leadership Training Program. Robert Lopez, Director of Lending. Mr. Lopez joined ACCION San Diego in March of 2008 and is responsible for lending staff supervision and training, program development, underwriting, loan portfolio quality and management, loss mitigation and recovery, development of bank and community partner relationships, and community outreach. Lopez received a B.A. in Urban Studies, with an emphasis in Public Administration from San Diego State University and has a Masters of Public Administration Program from SDSU. He has 10 years experience in small business banking and lending and is bilingual in English and Spanish. Prior employment includes work with Union Bank of California, California Coast Credit Union, Coast Central Credit Union, & Fannie Mae. Javier Islas, Director of Finance. Mr. Islas, CPA, is responsible for all finance and accounting functions of the organization and joined ACCION San Diego in January He has extensive experience in accounting and auditing. His audit background specifically includes federal financial management requirements having participated in the audits of the federal departments of labor & energy. His accounting background includes experience in for-profit and non-profit government contract organizations. He has a Bachelor's Degree from San Diego State University and is bilingual in English and Spanish. Valery Belloso, Business Development Officer. Ms. Belloso brings banking, finance, underwriting, marketing and presentation skills to the organization and has worked with ASD for six years. During the past six years, she has served as Loan Officer and Loan Program Coordinator directly underwriting loans, managing her portfolio, conducting client outreach, educational presentations and partnership development. She holds a B.A. from University of San Diego in both Business Administration and Spanish, with an emphasis in finance, is fluent in English and Spanish and holds a Masters in Spanish from SDSU. In her role as Business Development Officer, she is instrumental in executing and conducting bank outreach, referral cultivation, partnership
11 development, presentations and directly targeting regional areas to increase the number of businesses served within the target market. Maria Montaño, Loan Officer. Ms. Montaño joined the ACCION team in March 2001 and was promoted to Loan Officer in March As a loan officer, Ms. Montaño is responsible for generating new loans, marketing and outreach, and loan servicing. She is bilingual in English and Spanish and brings over ten years of experience in office management to her position. Nick Miluso, Loan Officer. Nick joined the ACCION San Diego team as a loan officer in January of 2012, bringing several years of community development and local microfinance experience. As loan officer, his responsibilities include portfolio management, loan generation, and community relationship building. Mr. Miluso received his B.A. in Global Studies at the University of California at Santa Barbara, and also possesses minors in both Spanish and Latin American Studies. Nick is bilingual in English and Spanish. Iliana Farias, Customer Service Representative. Ms. Farias helps streamline the loan process for our loan officers; her duties include gathering all necessary information from clients and processing all loan documents. She received her B.S. in Accounting from the Universidad Autónoma de Baja California and is bilingual in Spanish and English. Monica Battah, Part-Time Accounting Assistant. Ms. Battah joined Accion San Diego in June 2008, and is responsible for assisting the Director of Finance with all the accounting functions of the organization. She graduated from San Diego State University with a B.S. in Accounting, and is bilingual in English and Spanish. Joseph Lee, Part-Time Marketing & Resource Manager. Mr. Lee joined ACCION San Diego in August 2011 to grow brand awareness and increase resources for the organization and its clients. His responsibilities include developing marketing strategies to reach more clients and facilitating trainings for small business owners and entrepreneurs through events and social media. He also coordinates the ACCION San Diego volunteer program and assists with some fundraising initiatives. He is passionate about microfinance as a tangible means to help individuals and empower small business owners to participate in growing the local economy. He holds a B.A. in Sociology from UC San Diego and has over seven years of non-profit leadership experience. Jehanne Spriggs, Part-Time Administrative Assistant. Ms. Spriggs joined the ACCION San Diego team in November She serves as the first point of contact for customers and administers daily operations in the office. She holds BA in International affairs from Veslius College-Vrije Univeriteit Brussel and a minor in Asian Studies from Columbia University and UC Berkeley. She has experience in marketing, customer service and sales. She has had a passion for microfinance since living in Southeast Asia and hopes to use it to ensure the success of entrepreneurs striving to make a change in their lives and communities. Ms. Spriggs is also trilingual in English, French and Spanish.
12 Meet Our Board of Directors at ACCION San Diego Gordon P. Boerner Board Chair Senior Vice President & Private Banking Services Manager The Private Client Reserve of U.S. Bank Linda Cole Board Vice-Chair National Director, Economic Development Citibank, N.A. Jonathan Grissom Board Secretary Attorney at Law Higgs, Fletcher & Mack LLP Mark Emch Board Treasurer Vice President of Finance San Diego Convention Center Corporation William D. Lynch The William D. Lynch Foundation Julia Simms President/Founder J. Simms Agency Sal Crivello Commercial Banker WELLS FARGO & CO California Business Banking Stacey Kartchner Attorney at Law Jeffery Harding President Recycle San Diego (also a former and successful ACCION San Diego client) William Becker Vice President, Western Market California CRA Manager Comerica Bank Pamela Davis Banker Adam S. Metzger Director of Debt Acquisition Pacifica Companies Cecile Bereal President & CEO RMA Management Alliance, Inc. David Wallace General Manager Senior Helpers of San Diego Sean Carpenter Technical Officer for Agri-Business & Microenterprise Project Concern International