Helping People Save Money after a Rough Year
ACCION USA’s Miami office hit the ground running again this year in its fourth year of preparing taxes and helping low income individuals qualify for the Earned Income Tax Credit. Along the way we make sure that we also offer individuals other services (benefits screening, financial education) that they might qualify for through the various organizations that partner with the Human Services Coalition “Prosperity Campaign”. As part of our participation in the campaign we are able to prepare people’s taxes free of charge, especially important as low income folks confronted a tough 2009 and every penny of that return really counted. As of this week, 225 returns were prepared. That translates into $375,659 in refunds/credits back into the pockets of our local community. Now, that’s some great news for 2010!
Micro-Marketing for Microloans
From Andy Golden in the Georgia office:
Every day we are bombarded with messages from every angle of society begging for our attention. Which ones receive it? What quality of attention is given? I find myself able to perceive much, but truly taking in very little. So how do we market microloans in a creative way as to be more than just perceived? As marketing becomes more and more difficult how can microfinance organizations remain relevant without overwhelming our potential clients and supporters?
Creative marketing. Microfinance and microlending programs are gaining national recognition and the time is now to harness that exposure and turn the interested public into life-long advocates. Here are a few examples of recent events designed to get the word out:
Emory University recently invited Muhammad Yunus to present the 2010 Goodrich C. White Lecture to a packed auditorium of students, faculty, and community members. Gary Hauk, deputy to the president at Emory, said that the committee had zeroed in on Yunus because his work and compelling message are likely to appeal to a broad spectrum of the University community. Marketing for this event was successful due to the dual recognition of Emory as a leading educational institution as well as Dr. Yunus as a pioneer in microfinance.
MicroBrews for MicroLoans was an event that took place at the Atlanta Brewing Company to raise awareness of microfinance and microdevelopment. The night was filled with thinking and collaboration about the industry as well as enjoyment of microbrews from around the Atlanta area. No better way to ponder the sustainability of microfinance than with an Atlantan microbrew in one hand.
Lastly, small business lending has received some news attention as well. In a recent interview with Fox Business, Jim Koch, Founder of Boston Beer Company, explains his interest in helping entrepreneurs in the Boston area receive microloans to start businesses through ACCION USA. He started his company small and understands how hard it can be in the first years to have people trust you with small loans. His partnership with ACCION USA is one way he is able to steer entrepreneurs towards possible funds to get their businesses started.
Each of these strategies targets different segments of the population and provides awareness of the industry, as well as tangible ways for people to get involved in their communities. It is a tough task, but we at ACCION USA are committed to providing economic opportunity to communities in need. Won’t you join us?
Microfinance Week in Review – Week Ending March 26, 2010
Some of the week’s news in the microfinance, green business initiatives and the small business sector
- SBA Proposes New Rule to Expand Federal Contracting Opportunities for Women- Small Business Trends
- Does it all make sense? The need for clarity and coherence in microfinance- Microfinance Focus
- Congress Wrestles Over Small-Business Jobs Bill- New York Times
- Are Green Jobs the Business of Government?- Triple Pundit
- Coming to America – US Banker
Why I Love New York and Microfinance
From Elizabeth Bueno in New York:
Although I grew up in Queens and currently live in Brooklyn, the Bronx can feel like a world away. I find this interesting, since when I was a child I would dream of going to India or another far off country to somehow help humanity. My family never understood why I would want to go to India when I come from Colombia, a country that also suffers from deep poverty and even an internal civil war. What I’ve learned, especially living in New York, is that you don’t have to go very far to make a contribution to this world. My visit to an ACCION USA client, Leopoldina, was a reminder of that fact.
As the Kiva Intern at ACCION USA, one of my duties is to visit our clients to capture video and stories to post to the Kiva Web site. After a 50-minute subway ride, I came out from underground to the ecstatic rhythm of salsa music blasting from several cars. The smell of fried food mixed with incense burning from the local restaurant to provide a rapid awakening. I followed my Google Map and made the long walk to Leopoldina’s apartment in the public housing buildings.
Leopoldina knew that I would be making a visit to capture a video for the Kiva.org website. She greeted me very warmly and professionally. In her kitchen she had laid out a black cloth that beautifully displayed her gold jewelry. It was such an energetic environment; there were loud noises and medical equipment strewn around the house. She got right down to business and explained her hard, yet inspiring path to entrepreneurship.
Leopoldina was a factory worker. Because she is the mother of a special needs daughter, she left to be a housekeeper since it would allow her flexible hours. Only later did she decide to start up her own home-based jewelry business, using a small business loan from ACCION USA to purchase her first batch of inventory. In her eight years in business, she has become very skilled at selling. Leopoldina explained that selling her jewelry is therapeutic and lifts her spirits during difficult days. I was amazed by her knowledge of the art of sales. She beamed self-reliance.
As I sat at Leopoldina’s kitchen table, I could hear the moaning sounds of her daughter in the other room, and the neighbor’s shouting. But the sound that truly resonated was the strength and determination that I heard from Leopdoldina’s voice. “Me encanta Nueva York, mucho!” ’I love New York,’ she said. I felt a deep reminder for why I love New York, a city where immigrants like she and I can meet by happenstance and realize that we are both living our dreams.
Leopoldina from ACCION USA on Vimeo.
Elizabeth Bueno is the Kiva Coordinator Intern; take a look at the video she captured of Leopoldina during her interview for the Kiva.org website.
Green Education Critical to Green Action
Excitement was brewing at ACCION USA when clients participated in focus groups to test components of our new Green Loan Program. Participants felt that ACCION USA’s Green Loan Program is “going to become so important” to business owners as they innovate in the face of a struggling economy. While participants entered the focus group skeptical about their ability to green their businesses – stating that “going green is too costly,” attitudes shifted after learning about the benefits, proving the necessity for education.
The focus groups taught us a lot about our clients’ motivations and challenges. At the end of the night, it was clear that our work was cut out for us. The participants raised the following questions:
- How should ACCION USA educate clients on the benefits of greening their businesses and being more energy efficient (i.e., tax credits, energy savings, new client base)?
- How should ACCION USA market the green loan to the average small business owner concerned with the bottom line?
- How can ACCION USA reach clients who run less traditional businesses that don’t have a storefront or an office?
- How can ACCION USA implement and teach clients about the benefits of an energy audit, an important aspect of the green loan program?
- What measures can ACCION USA take to offer clients networking opportunities to share best practices and learn from other green borrowers?
Answers to these questions and more will be presented on Earth Day, when we’ll unveil all the details of ACCION USA’s Green Loan Program!
by Emily Cunningham
Microfinance Week in Review – Week Ending March 19, 2010
Some of the week’s news in the microfinance, green business initiatives and the small business sector
- Schumer Wants Higher Cap for Credit Union Small-Business Loans- Business Week
- Three Easy Green Fleet Initiatives for Medium-Duty Trucks- Triple Pundit
- Loan Squeeze Thwarts Small-Business Revival- Wall Street Journal
- Yunus: Education Must Accompany Micro Loans- Global Atlanta
Microfinance Week in Review – Week Ending March 12, 2010
Some of the week’s news in the microfinance, green business initiatives and the small business sector
- Wominnovation-Some innovations help women more than others – The Economist
- Sam Adams workshop has tips for small businesses- The Providence Journal
- Greening with Microloans: How Small Loans Help Truckers Comply With New EPA Regulations- Triple Pundit
- Refund Anticipation Loans: Just say no!- Woodstock Institute
- Why Won’t the S.B.A. Lend Directly to Small Businesses?- New York Times
- Citi Increases Contributions to the New CauseWorld App from shopkick Inc.- Market Watch
CARD Act Gives Consumers a Break
I want you to think back to the very first time you opened your mail to find that golden ticket: a pre-approved credit card offer. Was it been everything you hoped it would be? Or did you fall for some of the oldest tricks in the book…
Were you the college freshman who now realizes that the free pizza, Frisbee, and bottle opener at the credit card company’s fall expo booth might have actually cost you more than you thought (cough, 70” flat screen TV with 24% APR, cough)? Did you find out the hard way that “due on March 17th” actually meant “due by 9:00am on March 17th, so it actually needs to be here on March 16th… which conveniently falls on a Sunday, so let’s have it here by close of business on Friday the 14th”? Or maybe it just took a little too long to realize that consistent $30 monthly payments on your $800 couch would make your payment plan longer than your sofa’s life.
Every year, a new crop of credit card users finds themselves in these types of predicaments. Fortunately, the new Credit Card Responsibility and Disclosure (CARD) Act now makes each of these situations much less likely to occur.
The legislation is complex, but the highlights include limits on interest rate hikes, broader definitions of “on time” payments, new rules for pre-existing balances, and requirements on disclosures and extending credit to young adults. No more pre-5:00pm deadlines. No more interest rate hikes without 45 days of notice. No more credit card reps hiding in wooden horses allowed within 1,000 feet of college campuses.
The CARD Act’s transparency requirements may be particularly beneficial to small business owners in offering them an opportunity to strengthen their personal credit histories, further allowing them the opportunity to finance new employees, purchase inventory, or open a storefront. As an organization, ACCION USA’s goal is not only to provide small business owners with a transparent financing alternative to credit cards but also to teach them the necessity of managing credit card debt. The underlying message is simple: spending and paying responsibly keeps money in your business. And money in small businesses means economic recovery for our country.
Let’s hope that the CARD Act’s transparency requirements will mean the same thing.
Tags: accion usa, CARD Act, credit card, Financial Education, interest rates, legislation, microfinance, money management, new law, small business
Academics and Poverty?
The word Microfinance comes out of my mouth sounding academic sometimes. I throw it in discussions with “social justice, fair trade, and gender equality.” How can a topic so academic-sounding be put into everyday practice?
I have struggled for a while with that question and at times left it on the back burner, and then come back to it at a later date. Poverty is a fact of the world as we know it and exists because of institutions we have put into place, ironically. Dr. Muhammad Yunus, Founder of the Grameen Bank and Nobel Peace Prize winner, has devoted his life to poverty-alleviation for more than four decades. Recently, I had a chance to hear Dr. Yunus speak to a crowded sanctuary at Emory’s campus in Atlanta, GA. Filled with brilliant practicality, he spoke of initiatives undertaken by his Grameen Bank to counter the affects of poverty in Bangladesh and the world.
From global collaborations with Dannon Yogurt to make a nutrient-packed meal for malnourished children, to the drawing board of Adidas to create a shoe that could be sold for less than $1, Dr. Yunus described Grameen’s efforts to engage powerful companies in what he called “Social business.” Social business initiatives are run for the purpose of eliminating a social need. Malnutrition and the need for shoes can be addressed by social businesses due to the selfless nature of the initiatives. Earning a profit is not in the agenda, rather solving a social problem.
In the United States, Grameen Bank of America has a branch in Queens, NY as well as Omaha, NE and plans are revolving around a possible San Francisco location. “The need is everywhere,” exclaimed Dr. Yunus, referencing the need for accessible capital and resources in so many places around the world where bigger banks are not able to meet the needs of “credit unworthy” clients. ACCION USA stands in that gap between entrepreneurs and big banks to offer Start-Up and existing business loans, as well as credit-building resources and tools to empower business men and women to achieve their dreams.
You can debate the academic side of microfinance all you’d like, but just be sure to allow microfinance to affect you practically today.
–Andy Golden
Microfinance Week in Review- Week Ending March 5, 2010
Some of the week’s news in the microfinance, green business initiatives and the small business sector
- A Plea for Direct Lending to Small Businesses- Wall Street Journal
- Hub looks for boost to business- The Boston Globe
- What States and Cities Are Doing to Help Small Businesses- New York Times
- Microfinance industry experts debate over Inflated Interest Rates- Microfinance Focus
- Olympics Create a Green Business Tipping Point in Canada- Triple Pundit