Biz2Credit Latino Small Business Credit Study with Hector Barreto of The Latino Coalition and Paul Quintero of ACCION East Tues, Sept.

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1 Biz2Credit Latino Small Business Credit Study with Hector Barreto of The Latino Coalition and Paul Quintero of ACCION East Tues, Sept. 30, 2014 Helping Small Businesses Grow

2 Our Moderator today... Anita Campbell Founder, CEO and Publisher of Small Business Trends Anita Campbell is the CEO of Small Business Trends LLC, a media and information company. In that role she closely follows trends in the small business market and trends in technology. She has been an entrepreneur at heart her entire life. A lawyer by training, Anita has a wide range of interests, as reflected in her varied background in banking, information technology, human resources, marketing and ecommerce.

3 Our Presenters today Rohit Arora CEO and Co-Founder of Biz2Credit Hector Barreto Chairman of The Latino Coalition and former SBA Administrator ( ) Paul Quintero CEO of Microlender Accion East

4 Latino-owned businesses Though they are the fastest growing segment of the small business community, Latinos often find it challenging to secure capital

5 Biz2Credit in a few words Entrepreneur.com Top Small Business Finance Resource Crain s Top Entrepreneur Funded over $1 Billion to date Over 1,200 lenders on our platform, including 50+ micro-lenders Has direct reach to over 1.6 million small and medium sized business owners

6 Biz2Credit Quantifies Challenges Faced by Latino Small Business Owners Average annual revenue for Latino-owned businesses was $69,518.56, while for non-latino-owned businesses, the figure was $86, The average credit score for Latino-owned businesses was 611.7, compared to for all others. Average operating expenses were lower at $20,981.19, contrasted with $29, for non-latino businesses.

7 Biz2Credit Quantifies Challenges Faced by Latino Small Business Owners & Entrepreneurs in Securing Financing

8 Hector Barreto Chairman The Latino Coalition

9 Latino-owned companies There are over 3 million Latino-owned U.S. businesses Figure is expected to double in five years. Generate an estimated $500 billion in sales annually. Securing capital is still a challenge

10 Where are Latino businesses growing? The short answer is everywhere!

11 Where are Latino businesses growing? The top states for Latino-owned small business loan applications on Biz2Credit.com in the past two years were: California (20.3%), Florida (20.2%), Texas (14%), New York (11.7%), and New Jersey (4.2%) These five states represented more than 70 percent of the loan requests made by Latinos in the past two years. There are vibrant Latino communities in places such as Chicago, Denver, and Charlotte.

12 The Top 5 States for Latino-Owned Small Business Loan Applications

13 Challenges for Latino Entrepreneurs Because language is sometimes a barrier, the application process can be intimidating Some people don't have a lot of experience borrowing money from banks People with poor credit histories -- or none at all -- can be difficult to find a bank that will give an aspiring entrepreneur a chance (They often must turn to high interest, non-bank lenders, such as cash advance companies)

14 Young Latinos Are Entrepreneurial "The young generation of Latinos -- both immigrants and first or second generation Americans -- are very entrepreneurial. We must mentor them better, create role models in the community and help them take their companies to higher levels. I'd also like to see more Latinos enter the booming e-commerce and technology sectors in Silicon Valley and elsewhere. Hector Barreto, Chairman of The Latino Coalition.

15 Where to Find Funding Loan programs designed to help Latinos -- and others who live in economic empowerment zones Options besides name brand big banks include regional banks, credit unions and microlenders Alternative lenders typically approve more than half of the small business loan requests

16 The SBA SBA.gov provides links to Minority Business Development Centers (MBDCs) that can connect Latinos with training courses and other assistance The SBA sets has a network of Small Business Development Centers (Centros de Desarrollo Empresarial) that offer networking opportunities and advice The 8(a) Business Development Program helps socially and economically disadvantaged individuals through a wide range of assistance programs The agency provides assistance in both English and Spanish

17 Paul Quintero Executive Director of Accion East, a leading non-profit microlender

18 Biggest challenges for Latino small businesses in search of funding? First time entrepreneurs sometimes have poor credit histories -- or no credit history at all. Microlenders like Accion are willing to give people a chance who might not be able to secure a loan from a traditional bank lender

19 Can I qualify for a loan if I have bad credit? Yes! Accion requires a minimum 525 FICO Report score a number lower than most traditional lenders will accept

20 What is Role of microlenders? Accion East offers affordable microfinance solutions Since 1991, Accion has provided over $132 million in over 20,000 microloans Funding helps grow small companies, create jobs, and strengthen communities

21 What types of loans does Accion make? Established Business Loans (loans of up to $50,000) Emerging Business Loans (loans of up to $30,000 to help companies achieve profitability) Transition Business Loans (loans of up to $30,000 for the purchase of an existing business) Sprout Loans (small loans to help get startup businesses up and running) Promesa Loans (loans for startup entrepreneurs with little-to-no credit history)

22 How long does the process take? Typically 2-3 weeks, if the applicant has all the necessary documentation Applications are done online and completed in just a few minutes No need to fill out tedious paper forms!

23 Biz2Credit - Step-by-step application process for SMB borrowers 1 Borrowers create an account and apply for loans for free 2 Pre-qualify for multiple loans and compare options in the Biz2Credit system 3 Select the best product and finish application either online, or with the help of a Loan Specialist

24 Biz2Credit/TLC Registration Page

25 Biz2Credit Initial Loan Application Form

26 Instant Pre-qualified Matches Customers can either finish the application for a specific loan product online, or work with a Loan Specialist to complete the process

27 Complete Application Process 1 For many lenders, you can complete the entire application on Biz2Credit, receive a real-time offer, and get funding within a few days (*some on the same day!)

28 Complete Application Process 2 Upload all necessary documents, store them for record keeping, and share them with any lender!

29 Timeframes & Expectations Timeframes for receiving funds Personal Asset Loans: Same Day Cash Advances: Days ACCION Micro-loans: 1 week Traditional Loans Between $5,000 - $150,000: 1-3 weeks Traditional Loans > $150,000: 2-4 weeks *Biggest reason for delays: Document gathering

30 FAQ s Is there a cost to the customers? No. Registration is free, takes four minutes and enables borrowers to see loan product matches Typically, customers also do not pay anything to Biz2Credit secure loans How do we differ from competitors? Biz2Credit does not pass along info until the borrower chooses a lender Biz2Credit only receives revenue if the customer obtains a loan Biz2Credit has a network of over 1,300 lenders and has arranged more than $1.2 BILLION in loan products for all types of small businesses

31 Q&A Helping Small Businesses Grow