Lending. Supporting. Inspiring.

US MICROFINANCE:High School Students Making a Difference

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A Brief History of Microfinance

-The idea of credit and savings has been around for centuries

- Muhummus Yunus (Grameen Bank, Bangladesh) popularized the idea after winning a Nobel Peace Prize in 2006 for his work

- Going mainstream – online lending such as Kiva.org and the support of major banks such as Morgan Stanley, Deutsche Bank and Citigroup

- Microfinance in the U.S. – Seeing the need to support microentrepeneurs in the U.S., organization such as ACCION International helped launch offices in the U.S. in 1991.

Today, ACCION USA is serving microentrepeneurs nationwide.

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The Underlying Philosophy

Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.

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ACCION USA - Our Mission

As a leader in U.S. microfinance, ACCION USA empowers low-to-moderate income business owners through access to capital and financial education.

With economic opportunity, these entrepreneurs—often minorities and women—can build assets, better provide for their families, create employment and strengthen their communities.

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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:

• 118 Million

Loan size:

• $500-$50,000; average $6,000

Interest rates:

8-15%

Historical Repayment Rate:

Over 90% repayment

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Microenterprise Market in the U.S.

22 million businesses owned by microentrepreneurs in the US

– 5.13 million women-owned businesses– 2.5 million minority-owned businesses– 4.3 million business owners with personal incomes <$10k*

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ACCION USA Portfolio

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ACCION USA Portfolio

40% Women

61% Latino 27% African American

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The Growing Importance of Domestic Microfinance

Microenterprise is a vital part of the US Economy

Microfinance is central to building a strong economy

Microenterprises are more vulnerable to hard times

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Meet Josh at Bappin.com

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Access to Capital

It is estimated that more than half of all microentrepreneurs in the US lack access to financing for their small businesses

•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

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ACCION USA Lending Impact

• Provide alternative to predatory lenders

• Create employment opportunities

• Increase family income

• Generate sustainable businesses

1 Microtest Program Report, FY2008 Performance; 2 Estimates based on direct lending using ATX Impact Study methodology

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What can YOU do to help?Become a part of the ACCION USA high school network

1. Spread awareness!

• Many small business owners who have not heard about microfinance may be able to

benefit from ACCION USA’s services

• Participate in the microfinance blogosphere at www.accionusavols.ning.com

• Join the ACCION USA fan page on Facebook

• Follow us on twitter! Search for hashtags #microfinance and #accionusa

2. Fundraise!

• Each loan that ACCION USA generates creates an average of 2.4 new jobs. In

microfinance, small amounts can make a huge difference.

3. Start a club at school to do both!

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Key resources on the web

1. www.accionusa.org

2. www.kiva.org

3. http://fieldus.org (The Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination)

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Check out ACCION USA’s blog!

@ACCION_USA#MifiMon

www.accionusa.org/blog

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And now…

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QUIZ

1. Name one way that microfinance helps the economy.

2. What sort of people does ACCION USA typically serve?

3. What is the average ACCION USA loan size?

4. How many businesses are owned by microentrepreneurs in the U.S.?

5. What types of businesses do microentrepeneurs operate?

6. Who won a Nobel Peace Prize for microfinance in 2006?

7. What can High School students do to help?