Overview of domestic microfinance.

1. ACCION USAMicrofinance at Work in theUnitedStates

3. ACCION International was founded in 1961 to address the desperate poverty in Latin America's cities. Begun as a student-run volunteer effort in the shantytowns of Caracas, Venezuela, ACCION has a network of lending partners that spans Latin America, Africa, Asia and the United States.

5. Loans range from $500 to $50,000; average loan is $7,500

6. Historical repayment rate: over 92%Source: www.accionusa.org

7. ACCION U.S. Network The U.S. ACCION Network is a coordinating and resource building entity among five regional offices which elevates the work of the members to create world class microfinance institutions. ACCION Chicago ACCION New Mexico-Arizona-Colorado ACCION San Diego ACCION Texas-Louisiana ACCION USA

9. 41,226: total number of loans made since inception

10. $7,300: current average loan size

11. $41,800 million: amount of active portfolio

14. Some industries are considered to be high risk

15. Lack of financial documentation or records

16. Business is informal—no commercial track record

17. Loan amount needed is too small

18. Language BarriersSource: Field Program (The Aspen Institute)

19. ACCION USA Portfolio

20. Portfolio Demographics 65% Latino 20% African American 40% Women

22. 90% are minority

23. 75% have lived in U.S. over 10 years

24. 38% are home-based businesses

25. 45% are first-time borrowers65% Latino 20% African American 40% Women Source: 2009 Impact Study and ACCION USA Portfolio as of 12/31/2010

26. 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. 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.

27. Loan Process STEP 2:. Client submits documents and is interviewed by a loan consultant STEP 1: Client applies for a loan and is quickly informed about eligibility and loan size STEP 3: Application is reviewed by the underwriting team. STEP 5: Repayment begins or the client is referred to an organization to improve loan eligibility STEP 4: Loan is dispersed if approved

28. 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

29. Stories of Success-Partnerships Luis Zepeda Alvarez An ACCION USA borrower featured on Kiva 1 The Small Business Share of GDP, Katherine Kobe, Economic Consulting Services, LLC; 2 The Small Business Administration (2006)

30. How can you get involved? 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 on our website at www.accionusa.org! Attend our upcoming Microfinance Harvest Event on November 1st. Email Erica to attend edorn@accionusa.org