Micro-boosting Weatherization Programs
We are the weatherization nation – and so much the better for it. Last year, the Obama Administration injected $8 billion of stimulus funding into the weatherization industry, with a lofty tripartite objective: create green un-exportable jobs, save energy consumers cash, and make the environment happy.
But what happens when government money is injected into a system that doesn’t exist? Community, government, and for-profit groups scramble to create the infrastructure. After much “building”, what has been made clear is that “there are currently not enough skilled workers and green entrepreneurs to expand weatherization and efficiency retrofit programs on a national scale,” as Vice President Biden concluded in a recent task force report on the subject.
- Contractors need loans for items like blower doors, which are used to check a building’s insulation.
ACCION USA is currently talking with groups in Massachusetts and New York about leveraging microlending to help contractors jump into weatherization and/or aid those already in the game to expand to meet growing the demand. While many states have used government funding to provide incentives for weatherization, many of these incentives are rebates. And without the money to front the cost, many contractors are opting out.
By incorporating a microlending component into weatherization programs, contractors will be able to move quickly – reacting to the market. Once they’ve taken hold of the weatherization opportunity, these businesses will continue to flourish, in large part due to the education and credit training received with their microloans. So even after the nation has been duly weatherized, contractors will continue to employ and grow.
Do you think microlending has a part to play in weatherization?
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!
Why America’s Small Businesses Aren’t Going Green (and How ACCION USA is Changing That)
“Going green seems like a no-brainer—businesses can save both money and the planet, what’s not to love?” When we set out to launch our green loan product, that’s what we thought. And then we dug deeper, into the psyche and daily experience of the small businesses we serve. In addition to traditional market research, in April 2009 we executed two focus groups and what we found may surprise you. While small businesses report to “strongly believe in green”, they also:
- Are confused on the definition of a green businesses
- Feel there is a lack of transparency in the small business green market;
- Feel most businesses are not serious about helping the environment, but are looking for a “pat on the back” or a marketing gimmick; and
- Think going green is not economically viable, and should be heavily subsidized.
We can’t ignore the data. Going green can bring green ($) if you have green ($). Microfinance organizations are perfectly poised to pull small businesses out of the same old “I can’t, it’s too expensive” mentality. With the right loan product and support services, small business will see a return on their investment and, at the same time, make the planet a more hospitable place to live. To address the concerns we discovered in our initial research, ACCION USA will launch a green loan program that is:
- Clear on its definition of “green”,
- Focused on energy efficiency and provide clear-cut guidelines to defining green,
- Affordable if not low-cost,
- Industry-specific in terms of support services and marketing, and
- Supported by trusted organizations.
Stay tuned, this month we’re finishing up our second round of focus groups and will release preliminary results right here on Main Street Microfinance. In the meantime, check out our client and green-preneur Brian Duda.
Tags: green business loans
For Small Businesses, Green is the New Black
Green – it’s the new black. But hopefully, it’s more than a fad, or a marketing gimmick – but a real strategy to build our economy and secure our future. At ACCION USA, we spent the better half of 2009 focused on green and how “greening” can help grow small business. Our objective is simple: to provide business owners practical means to improve their profits, their community and their planet.
But how can “greening” grow small business, you ask? Incorporating eco-friendly products and energy-saving measures will be easier than ever! Going green impacts the bottom line and helps small businesses to:
- Access new, green-conscious consumers
- Reduce business energy, water and waste costs
- Participate in the growing green economy
- Hire for green jobs
- Leverage to tax credits and rebate programs
On the 40th anniversary of Earth Day this April, ACCION USA will launch a green loan program, so stay tuned for a sneak preview in upcoming weeks.
Jennifer Spaziano, vice president of business development at ACCION USA, ioins Main Street Microfinance as a regular blog contributor, covering green business issues and ACCION USA’s launch into green lending. Stay tuned for news and progress on our green lending initiative!
Tags: business, energy efficiency, green
Running on Alternatives: Meet ACCION USA Client Brian Duda
Brian Duda is an ACCION USA client from Alabama. Through his company DudaDiesel, he sells all the tools that “DIY-ers” need to make their own diesel vehicles run on biodiesel or vegetable oil. His mission is to make alternative fuel methods available to a wider market and to educate people about the use of biodiesel fuels. Elise had a chance to interview him last week about his effect on his local community.
Elise Tosun: Brian, you obviously provide a service whose need has not really been met yet in your community. How does your business support your local community in general?
Brian Duda with bio-fuel processing equipment
Brian Duda: Well, since my business has grown I’ve been able to provide jobs for some locals who do packaging, shipping, and cleaning in my warehouse. I also do a lot to educate my market about alternative fuels. When people want to learn about biodiesel, they know to go to the internet, but they often don’t know where to start. We’ve partnered with a website that provides very comprehensive and organized information to consumers about how to convert their vehicles to run on biodiesels. We direct our customers there so that they’re empowered to do it on their own, and then we sell them the materials to do so.
Another significant way we’re helping the local community is by providing restaurants with a market to sell their used vegetable oil waste. To do this, restaurants usually need to partner with a large company and must sign a multi-year contract. Our relationship is a much more flexible one.
ET: What were some of the challenges you’ve had getting your business to where it is today?
BD: The main challenge for me has been keeping up with demand! My business started straight out of my apartment, but now that I’ve begun selling on the internet there is so much more demand, not only for more of what I already am selling, but also for different products. It’s a tough balance because I want to expand to new products, but I also need to make sure I have the funding in place to keep up with new demand. My products sell out very quickly and keeping them in stock has been challenging.
ET: So has your ACCION USA loan helped out with that problem at all?
BD: Definitely – that’s exactly what I used my loan for. I was able to buy some inventory and now I’m about a month ahead of the curve keeping up with demand.
ET: What does the future hold for DudaDiesel?
BD: First, I really want to work on expanding to new product lines. One of those lines is solar energy; however I need to make sure there’s a market for it first because it’s an expensive investment. Once I have all of the product lines I want to carry, I’ll focus more on biodiesel production. My dream is to get to a point where I am producing fuel of a standard high enough to be sold to vehicles on the highway. Right now, there is one gas station in town that sells diesel at extremely high prices, so I’d like to put a station up right across the street to provide some competition. It would be great to get prices down to a more affordable level for consumers.
ET: Lastly, do you have any words of advice for small business owners who want to get involved in their community?
BD: My main piece of advice is to concentrate on serving your customer base and satisfying the demand that exists in your market, before getting too big too fast. Make sure you’re selling products that people want to buy and more importantly that they can afford. It also helps to team up with local businesses that can help you access different sections of your market.