Five Reasons to Attend Micro-Yoga for Microfinance
Recently, some colleagues expressed interest in a mid-day yoga class. I’d been wanting to get one together since I started at ACCION USA last April. Conveniently, a spacious and peaceful room was for rent on the 12th floor of AUSA’s New York office, perfect for a yoga class. After mulling over the perfect day and time for the class (ie. a time when busy New York professionals could find less excuses to skip) we decided on Tuesdays at 12 noon.
Micro-yoga is a 45 minute rejuvenating midday class full of stretching, deep breathing, and mind and body awareness techniques.
As a socially conscious nonprofit organization, ACCION USA understands the value of healthy and happy staff. We had our first Micro-yoga class yesterday, and it was a delightful experience. We’re welcoming members of the public to the class—here are 5 great reasons to join us!
- It’s low-cost! Your small donation for the class benefits ACCION USA
- The serene 45 minute session gives you a major boost of energy and focus
- It might be the only good reason you can find to step away from your desk
- The inner peace you create during class cultivates good decision making
- We’ll leave this fifth up to you to decide (feel free to comment)… Come and try is for yourself!
Check out www.accionusa.org/microyoga to learn more.
The Incredible, Shrinking Tax Refund!
ACCION USA provides taxpayers with the financial education and resources they need to make smart, informed decisions about RALs.
And so it begins. Tax season. The time of year when tax prep software commercials sandwich prime time TV shows and your friends in the tax prep industry sleep on office couches. For many like myself, it’s another opportunity to procrastinate for four months and then spend my entire refund on priority mail.
Unfortunately, this time of year is also notorious for coercion and scheming, and the latest trend is in refund anticipation loans (RALs). A tax preparer may advertise these loans as “instant loans” or “instant refunds” – in reality, the only instant thing about them is the speed with which your real refund will shrink.
Here’s how it works: your tax preparer offers you a RAL; you accept the offer and sign a document, which is essentially a loan agreement authorizing the preparer to use your refund as a guarantee, with interest rates as high as 50-500% a year; the loan is (instantly!) approved; you walk away with fast cash but actually receive a significantly smaller refund; and the tax preparer makes one hefty profit.
Certainly, the tax prep industry provides a highly-demanded service for many, many people. But according to the Woodstock Institute, 8.67 million taxpayers received RALs in 2007. A RAL may very well have been an appropriate solution for some of these individuals, but I will venture to guess that they comprise only a small portion of that 8.67 million. What about the millions who are essentially handing over their hard-earned money? I believe the answer lies in education and empowerment.
ACCION USA’s financial education team is on top of this. We have already distributed an article addressing RALs, and we are featuring RALs in our online tip of the month. In addition to educating clients on the implications of refund anticipation loans, we also provide them with valuable resources, including smart alternatives to RALs, lists of free tax preparation locations (including our Miami, FL office), and helpful websites. These resources not only have the power to produce more informed taxpayers; but they also have the potential to mold a new generation of educated, responsible, and empowered consumers.
This type of generational change may not be instant – but in terms of the return, the investment is surely worth the wait.
Tags: accion, accion usa, anticipation, education, eitc, financial, Financial Education, literacy, loan, microfinance, prep, preparation, RAL, refund, tax, tax season
ACCION USA Takes the Energy Star Challenge
ACCION USA kicked the year off right by pledging to reduce our carbon footprint in 2010! We created an internal committee of passionate staffers and signed onto the Energy Star Challenge to hold our feet to the fire. We figured that greening our own operations would be an important step in promoting green business practices to microentrepreneurs.
To start, ACCION USA staffers in each office volunteered to be a green champion— each responsible for surveying our current green (or not-so-green) status. The survey considers the following:
- Facilities and Energy Use: Utilities, Lighting, Electronics, and HVAC
- Water Conservation
- Waste: Reduction, Recycling, and Printing
- Green Product Purchasing
- Transportation
The survey will help the green committee determine ACCION USA’s baseline. Once the baseline is established, we’ll be able to create a plan and track our progress (which, of course, we’ll report back to all of you!).
To rally our entire organization around the green theme, the committee will be throwing a St. Paddy’s Day pot luck and, you guessed it, staff will be asked to bring their favorite green (or green-colored) food. And, of course, we’ll post pictures.
Read more about the Energy Star Challenge and sign up to take it yourself!
Is ACCION USA More Than a Microlender?
For Margarita Amador, ACCIÓN USA served as more than just a lender; “ACCIÓN USA has helped me tremendously because I received a lot of advice not only on how to continue with my business, but on how to improve and manage my personal credit.”
Knowledge is power. What a simple but empowering phrase. It resonates with me on so many levels: as a recent college graduate, as a woman, and as a voter. So, when the latest FDIC white paper, Financial Education and the Future, outlined the startling state of financial education in the United States, it prompted me to consider ACCION USA’s role as not only a microlender but also as an educator.
The FDIC paper reported that an estimated 10-20 million individuals are unbanked – that is, they have no relationship with a bank. Moreover, this trend appears most acutely among new immigrants and members of minority communities. A staggering 35% of our county’s Latino population is unbanked, due equally in part to cultural differences, language barriers, and institutional distrust. This unbanked trend continues to lead these individuals to expensive alternative banking sources, such as predatory payday lenders.
Some advocate regulating these alternative sources, but rate caps only go so far. And more importantly, they don’t directly target the financial illiteracy that frequently lies at the root of this problem.
ACCION USA targets this root. We’re in the asset-building business, and education is an asset that adds value for generations to come. Our interactive workshops show individuals that saving is important – if only $5 a month. Our personalized technical assistance explains why good credit is crucial in this country, and why debt must be managed and not ignored. Our one-to-one business counseling demonstrates that planning and cash flow and recordkeeping are essential for business survival.
For some, these things might be common sense. But consider the perspective of a recent immigrant or of someone whose parents immediately cashed each paycheck just to put dinner on the table. Just as your home environment will influence your knowledge of sports, music, or any other activity, it can also predict your future money management skills and those of your children and of your children’s children.
Instead of allowing financial illiteracy to perpetuate, ACCION USA takes the initiative to educate and instill in individuals the education and tools they need to succeed in this country.
And by doing so, we’re seeing every day that knowledge really is power.
Local Volunteers Give the Gift of a Chance
Old Saint Nick is arriving soon, which got me thinking about all the other saints that I am surrounded by. For the talent and dedication that volunteers bring to ACCION USA, I deem them all saints! Volunteers, with their diehard support and energizing enthusiasm, have infiltrated all aspects of the operations here at ACCION USA.
Hear from a volunteer that has been with ACCION USA since August. Elise talks about how she supports her local small business community and about her dedication to ACCION USA.
How do you support local businesses in your community?
In a city like New York, it’s easy to support local businesses. I’m surrounded by local providers of all the services I need! I love to go to local cafés; there is one near my house in the Chelsea neighborhood where I’ve gotten to know most of the staff. I like that they always offer unique seasonal coffee selections! I also like to buy fruit and veggies from the local farmers markets. The prices are better and the food is more fresh and delicious than the produce that you can find at the large supermarkets in the City.
How are you involved with ACCION USA?
I’ve been volunteering at ACCION USA for five months. As a member of the Microfinance Council of ACCION USA, I learned about the volunteer translation team and began doing Spanish translations. Erica, the Kiva/Volunteer coordinator, asked me if I’d like to get involved on other projects. Since I was unemployed and had the time, I came on full-time as the Kiva intern. I’ve been involved in getting the Kiva program integrated into the operations at ACCION USA. It’s been rewarding to see how far the partnership with Kiva has come! The best part of volunteering at ACCION USA is that you are given quite a bit of freedom to take on various projects at the organization and to learn as much as you can.
What do you find inspiring about working with ACCION USA?
First and foremost I am inspired by the clients. I’ve gotten to see firsthand their ingenuity and incredible work ethic. Each client has a different story of entrepreneurship. Their lives inspire me. Also before I came to ACCION USA, I’d never worked at a non-profit, so it has been incredible to see how supportive the staff of ACCION USA is. Everyone is always willing to help out one another and to collaborate.
Any words of advice for small business owners who want to get more involved in their community?
1. Strike up a conversation with your local business providers. More than just making a purchase, it is making a connection to someone in your community, widening your social circle.
2. Learn how to use technology to improve every aspect of your business!
3. Focus on meeting the needs of your costumers and making them happy.
After spending five months of dedicated volunteerism to ACCION USA, Elise was hired this week! I can’t think of a better gift to ACCION USA than to have Elise join us as a loan consultant. Her hardworking spirit will ensure that many microentrepreneurs in New York City will be treated with dignity and will be given the chance of a microloan. To all the saints out there, your dedication to social good through volunteerism brings gratitude beyond words. Thank you for giving the gift of chance.
Above and beyond, Elise has been an innovator on the Main Street Microfinance blog, check out her in-depth posts on ACCION USA staff and the Kiva program. Most recently Elise put together the content for our new video. Her creativity has inspired an organizational video strategy, so stay tuned for more ACCION USA videos!
A Friendly ACCIONista, Coming to a Town Near You
With an online small business loan application and direct lending offices in Boston, Atlanta, New York and Miami, ACCION USA makes microloans available nationwide. However, unless you live near one of these four metro areas, you can’t just drive down the street to visit your friendly neighborhood ACCIONista.
However, ACCION USA loan consultant Rachel Hynes will soon be on the road in Philadelphia and Washington, DC—two markets that we have set in our sights to grow our presence and serve more microentrepreneurs— meeting and greeting clients, potential borrowers, and community partners.
As a member of ACCION USA’s internet lending team, Rachel specializes in working with clients and partners nationwide to bring microloan services to small business owners who need them. Usually this means working with people over the phone, but for three weeks Rachel will be on the road to meet with YOU in person. She loves shaking the hand of the entrepreneurs she helps, and meeting in person with community referral partners.
Make Rachel’s Day
We know that bankers want to help their clients, but it’s not always possible to offer every entrepreneur a small business loan. You can talk with Rachel about how we can build a referral relationship with your bank to mutually benefit our companies and our clients. And we don’t only partner with banks. If you are part of an organization with a mission to help small business owners thrive then Rachel wants to meet you, too! She will speak with you about your organization’s work and how ACCION USA can offer important value add-ins for your clients. Find out why companies from Bank of America to the Small Business Administration to the Hispanic Business Exchange work with us, and why you should as well.
Rachel’s schedule is the following:
November 23-25: Washington, DC
November 30-December 4: Philadelphia
December 7-8: TBA (Philadelphia or Washington, DC)
December 9-10: Washington, DC
Leave a comment or email rhynes@accionusa.org to schedule a meeting with Rachel, and help increase microloan services in your community!
ACCION USA in Action: Meet Elizabeth, Financial Education Coordinator
This is the second in a series of posts that examine “a day in the life” of an ACCION USA employee from each department. In this post, we meet Elizabeth Garlow, a Financial Education Coordinator based in Boston, MA.
Elise Tosun: How did you find out about AUSA and when did you first get involved?
Elizabeth Garlow: I first learned about the field of microfinance in an international development class in college, and upon participating in a microfinance workshop, I heard about ACCION USA. Looking to get some hands-on experience in the field, I found out about an opportunity to work for ACCION USA in the area of financial education as an Americorps VISTA volunteer. Before I knew it, I was hopping on a plane to move from Detroit to Boston!
ET: What is a typical day like for you?
EG: One thing I love so much about my job is that there really is no typical day! My role involves actively engaging with current and potential clients, providing technical assistance and teaching online or community workshops on credit, money management and small business fundamentals. In one day, I may speak one-on-one with clients seeking advice on managing their credit or wanting to learn more about online marketing strategies for their businesses. As part of ACCION USA’s effort to constantly be responsive to the needs of entrepreneurs, I also work on new product development initiatives. This involves exploring potential partnership opportunities with student-run microfinance clubs, community organizations, and corporate partners, to name a few.
ET: What do you love most about working with AUSA?
EG: The entrepreneurs fascinate me, because they can find a way around any obstacle. I love interacting directly with entrepreneurs on a daily basis and being ‘in the field,’ witnessing first-hand their passion and creativity. ACCION USA has a partnership with The Boston Beer Company called Brewing the American Dream®, which focuses on providing access to capital, training and mentors to food, beverage and hospitality entrepreneurs. I’ve been organizing one-on-one coaching events for them, and it’s very rewarding to help them along the path to growing and strengthening their businesses and the communities around them. Cheers to that!
ET: Are there any challenges to your job?
EG: Microfinance is both an exciting and a challenging field to be a part of today. It’s challenging because our clients are constantly trying to stay afloat in today’s economy. It’s exciting because, while times are tough, there is a huge demand to find creative solutions to respond to today’s challenges. At ACCION USA, we’re working hard to be a leader in identifying those creative solutions.
ET: Any final words of wisdom?
EG: Shop locally this holiday season! We hear again and again how small businesses are the backbone of our economy; let’s make sure we’re doing our part to support them.
Redefining Financial Inclusion
Last week, ACCION USA Georgia had the opportunity to present at the 2009 Reaching Out MBA Conference held in Atlanta. ROMBA is the annual conference of lesbian, gay, bisexual, and transgender (LGBT) graduate business school students. ACCION USA Georgia Program Director Wole Ralph was one of three representatives on the Microfinance and International Development career panel.
Around 30-40 students attended this panel; the impressive turnout confirmed what I already knew— social responsibility is no longer just a warm and fuzzy concept that sounds “nice” among this generation of future business leaders. Instead, it is a valued necessity, and I am hopeful that more and more business professionals are seriously considering microfinance and development work as real career options for their future.
The LGBT focus of ROMBA also encouraged me to contemplate the diversity of our client base. Our invitation to participate in this conference is a signal that there is strong interest in microfinance within the LGBT community, and I believe our client base should reflect the LGBT community’s support and interest in micro-lending. As a leader in domestic microfinance, ACCION USA must set an example by serving a diverse group of clients, not just in terms of gender or ethnicity, but also in terms of sexual-orientation. ROMBA reminded me that we should continually strive to provide our services to diverse communities around us; after all, microfinance’s most important mission is to promote financial inclusion for all and provide financial access to all people.
Tags: financial inclusion, LGBT, ROMBA
ACCION USA in Action: Meet Maika, Loan Consultant
This is the first in a series of posts that examines “a day in the life” of an ACCION USA employee from each department. In this post, we meet Maika Hemphill, a Loan Consultant based in New York, NY.
Elise Tosun: Maika, how did you find out about ACCION USA, and when did you first get involved?
Maika Hemphill: When I decided to leave my investment banking job, I was considering microfinance as a serious career option, so I researched the field and found out about ACCION International. I had a contact in my network who had worked at ACCION USA, which is how I ended up getting an internship here, and eventually a job.
ET: What is a typical day like for you?
MH: The first thing I do each morning is read the financial news, a habit from my banking days. I spend most of my morning on the phone with partners, updating them on clients they’ve referred, and with new and existing clients. In the afternoon, I might do a site visit, which involves going to the client’s business and doing some “detective” work to make sure their business functions the way they’ve described it. Later, I turn off my phone for a few hours to work on financial analysis of client loan applications – which can take until about 9pm.
ET: What do you love about working at ACCION USA?
MH: Because it’s a non-profit, everyone really loves being here and has a sense of humor when things go wrong, so it’s a very supportive environment. I think the best part about working here is the clients. It’s really important to me to learn how microfinance is meeting the needs of its clientele, and to see it “in the trenches.” As a loan consultant, I am constantly seeing their real needs being met, which is so fulfilling.
ET: Even though the clients are the best part of the job, is there anything you find challenging about working with clients?
MH: Sometimes, I can tell that people would be great clients, but they may have made some uninformed decisions in the past that end up adversely affecting their credit, or they don’t keep records of their business that are comprehensive enough to justify the loan size they are requesting. It’s frustrating when I want to help them, but am unable to because they’re not familiar with the long-lasting consequences of their financial decisions. I always try to refer them to a financial counselor if I can’t help them myself.
ET: One last question: How do you make your job fun?
MH: I get to know the clients really well, because my job requires that I become familiar with everything they spend money on, which keeps my day interesting. I also love that I get to apply my background in banking, where I was analyzing huge corporations, to the financial analysis of small businesses. I think my financial analysis background is a huge asset, and I’m glad I get to use it to help our clients’ businesses grow!
Watch a video of Maika in action, constructing a cash flow statement from a non-traditional client’s receipts, here: