Green Cash for Green Business: FREE Webinar November 15th!
“Green businesses operate in ways that solve, rather than cause, both environmental and social problems,” says Green America, a national leader in promoting green business practices. And while “being green” helps the environment, many people tout that “green” is also a strong revenue driver for small businesses that tap into environmentally conscious consumers.
However, Denise Hamler, director of Green America’s Green Business Network, says that “financing is the number one challenge facing green businesses today. Many of the small businesses we work with have strong market opportunities, but are not capitalized enough to really reach their potential.”
ACCION USA hears this story every day – from our own small business clients, as well as our focus groups. The verdict is unanimous: small business owners “strongly believe in green,” but at the same time, think that “going green” is not economically viable.
We can’t ignore the data. “Going green” can bring green ($)…but only if you have green ($).
Fortunately, 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.
For this reason, ACCION USA launched a Green Small Business Loan program that provides financing and consulting to green enterprises. Want to learn more? On November 15th at 2 PM EST you can speak directly with Renzo Mendoza, an ACCION USA Loan Consultant, about how to apply for a Green Loan. The “Green Cash for Green Business” webinar is free and will cover all you want to know about ACCION USA’s green loan program.
And ACCION USA will waive the $30 loan application fee for all “Green Cash for Green Business” webinar participants!*
So, if you are a small business with green principles and need working capital or want to invest in energy efficient equipment or upgrades, look no further. ACCION USA and Green America are bringing you an exclusive look into ACCION USA’s lending process.
Don’t miss this free opportunity – space is limited so REGISTER TODAY!
What will you take away from the webinar?
- A waived loan application fee* (a $30 value)
- The definition and benefit of an ACCION USA Green loan
- Information about credit, financial, and collateral requirements for loans up to $50,000
- An understanding of loan rates, fees, and terms
- Training and educational benefits
- Direct connection with an ACCION USA loan consultant
Not able to make the webinar, but have green loan questions? Search #GreenMyBusiness on www.Twitter.com at 3 PM EST on November 11th to join the twitter party and engage in good green conver sation.
We look forward to seeing you on Monday!
* Must apply within one week of “Green Cash for Green Business” webinar
Tags: accion usa, Financial Education, financing, green, green america, Green Business, loan consultant, small business
Beer, Pita Chips, and Burritos?
Jim Koch (right), founder of The Boston Beer Company, can relate to the struggles of a small business owner. At yesterday's Brewing the American Dream U, he offered advice and expertise to over 150 local entrepreneurs.
Yesterday afternoon, the streets of Boston were damp and a bit dreary. But indoors, things were bright: teachers dispensed knowledge, students absorbed every word, and both listened and learned from each others’ experiences. But this scene’s setting wasn’t the halls of Harvard or MIT. Rather, it was the second-floor ballroom of the Park Plaza Hotel, where ACCION USA and The Boston Beer Company presented the inaugural Brewing the American Dream U: a free, half-day event for entrepreneurs in the food, beverage, and hospitality industries to receive expertise from leading local business owners.
Over 150 entrepreneurs attended. For four hours, they listened as fifteen experts shared advice and fielded questions on topics including “What I Learned on My Way to the Kitchen” and “Getting Your Product Ready for Retail.” The advice was timely, inspirational, and most importantly, honest.
Jim Koch, founder of The Boston Beer Company, discussed the salesman’s mentality (every time he walked into a bar, he had only a few seconds to determine why the people sitting at the counter should drink his beer and why the person behind the counter should sell it). Stacy Madison, founder of Stacy’s Pita Chips, explained the importance of targeted marketing strategies (it’s like a fire hose: you have to focus your efforts, not just spray aimlessly). And John Pepper, founder of Boloco, emphasized the necessity of resilience (he pitched his business to 39 investors before he heard the word “yes”).
The event was an important step in strengthening the Boston Beer Company-ACCION USA partnership – appropriately named Brewing the American Dream – which launched in 2008. In the past two years, the program has provided loans to small business owners in Massachusetts and, in doing so, saved or created 282 jobs.
The partnership not only involves loans but, more so, financial education and “speed coaching” events designed to empower entrepreneurs with the knowledge they need to build their businesses. Together, these programs support entrepreneurs and prepare them for the many challenges of business ownership. And judging by an e-mail we received from an event participant this morning, these efforts are working:
“I just wanted to let you know how awesome yesterday was. I was amazed at how eager and enthusiastic all the panel members, Sam Adams, and ACCION were to lend a hand to micro entrepreneurs. It was truly inspiring and empowering. As a member of the food industry, I have many friends and colleagues with big dreams of starting their own venture and I’m certain they are not aware of these incredible resources available to them. I am excited to spread the word, and to seriously consider pursuing my dream as well.”
Help “brew” this entrepreneur’s dream by donating here.
Tags: accion usa, boloco, Boston, entrepreneur, Financial Education, jim koch, Samuel Adams Brewing the American Dream, small business, stacy's pita chips
New Summer Survey Under Way!
“A life is not important except in the impact it has on other lives.” – Jackie Robinson
We hear this philosophy often, and I believe it to be true. Think back to all those who have shaped your life, your thoughts, and your decisions: teachers and family, friends and mentors, coaches, neighbors, and pastors. Sometimes, short, one-time experiences can be just as impactful.
That is the hope of ACCION USA’s financial education team. We aim to build lasting relationships with program participants, and often we do; individuals will attend a webinar, we’ll then invite them a speed coaching event, and they will eventually apply for a business loan. Many times, though, we have only an hour – the length of a webinar or community workshop – to impact someone’s life.
Samuel Adams founder Jim Koch (right) offers business advice to a Boston business owner at a recent financial education event.
With that understanding, ACCION USA recently developed and launched our first-ever financial education longitudinal impact survey. We’ve gathered the names and contact information of financial education participants over the past year and half and are, through the end of July, surveying them on the quality, outcomes, and long-term impact of our financial education events.
Thus far, the results are very positive. Participants – even those from as far back as January 2009 – remember the events, remember what they learned, and can explain how the event content has since shaped their financial decisions. I’m personally interviewing speed coaching participants, and nearly all remember specific business advice they received! One man explained a coach’s advice to simplify his business logo, and another woman gushed about a coach’s suggestions to reach new clients with her niche business.
Currently, we gather feedback at the end of each financial education event; it helps us understand the event’s immediate effect on participants. But this longitudinal survey will be even more helpful by reporting the event’s long-lasting effects. Does a woman now have a habit of making a budget? Did she review her credit report for the first time and dispute an error? Did she improve her credit score, qualifying herself for a small business loan?
Above all, the survey results will help ACCION USA learn what we are doing well and how we can change our programs to more effectively serve entrepreneurs.
Stay tuned for the full survey report in August!
Tags: Financial Education, impact, Sam Adams, speed coaching, workshop
The Land of Opportunity
This week we celebrated the Fourth of July. Hot dogs, swimming pools, fireworks – how better to ring in this annual occasion and take a few days to remember our country’s history? As I sat along Boston’s Charles River banks this Sunday evening, I couldn’t help but reflect on our country’s core principles of freedom, opportunity, and equality.
Moreover, my thoughts centered on those who come to the U.S. every day to realize the “American dream.” But we all know that U.S. soil doesn’t guarantee a life free of struggle.
Imagine two scenarios. In one, a Venezuelan women moves to Miami with her husband. She has limited English fluency and little personal savings, as her husband handles their finances. But she wants to begin a small sewing business to keep herself busy and contribute to the household income. In the second scenario, a young man comes to the United States from Ecuador. He has his Masters degree, nearly twenty years of business experience, perfect English fluency, and a hefty savings. He hopes to open a leather importing business in Boston.
Despite their many differences, these two individuals have two things in common: their lack of credit history and knowledge of the U.S. financial system. And because of these key similarities, neither can get an affordable loan.
These descriptions detail the experiences of two ACCION USA clients. Lack of credit history is only one of many challenges immigrants face when trying to access financing. Language barriers are also great, as detailed by the U.S. Government Accountability Office’s recent report, entitled Factors Affecting the Financial Literacy of Individuals with Limited English Proficiency. The report explains that language barriers can prevent individuals from understanding financial products’ terms, disputing charges or fees, managing accounts, and simply accessing financial education opportunities. Furthermore, many immigrants carry a negative correlation with financial institutions, due to prior experiences or institutional fraud and instability in their countries.
ACCION USA has many programs and services in place to address these challenges. For example, our small credit builder loans are specifically designed to help individuals with no credit history begin to build one. Our financial education workshops help immigrants understand not only how to build credit but also why building credit is important in the United States. And we continue to work closely with groups such as the Massachusetts Refugee Enterprise Achievement Program to establish ACCION USA as a trusted and reliable name among immigrant communities.
Through these programs and relationships, ACCION USA continues to help immigrants achieve the full “American dream.”
Tags: accion usa, english, Financial Education, fourth of july, immigrant, literacy, massachusetts, miami, report
I’m not Jerry Maguire, but Show Me the Money!
Show Me the Money event from ACCION USA on Vimeo.
by Amelie Busch
Business owners didn’t actually see dollar bills flying around at the ‘Show Me the Money’ event in June, but they did learn some great tools to see more of them in the future. ACCION USA and Citigroup hosted the event at LaGuardia College in Queens, NY, to respond to the economic uncertainty and lack of credit in the current financial crisis. The event was a big hit with its seven panelists and more than 70 attendees! Many came for the same reason: advice on building credit. Here’s what we learned from the panelists:
- The rules of credit
Florence Julliard of the East River Development Alliance mentioned three key strategies: always pay your bills on time, keep your credit card balances low, and be judicious about how often you apply for a loan. - Start your business with your own savings
Brian Gurski of the LaGuardia Small Business Development Center spoke to the types of initial funding of the top 100 start-up businesses: 74% used their own personal savings! - Keep your cash flow positive
Matt Norton of Citigroup stressed the importance of keeping your cash flow and ‘the bottom line’ positive. - Starting the loan process
Elizabeth Bueno of ACCION USA told us what we’ll need to apply for a loan: three months of bank statements, two years of tax returns, a business certificate, and a separate accounting of business and personal expenses. - ACCION USA’s loans
ACCION USA lends to microentrepreneurs for both personal and business loans. These loans range in size between $500 and $50,000.
At the end of the day, microentrepreneurs networked with panelists and other small business owners. The event was a great success, and many attendees soon contacted ACCION USA loan consultants to start the process of getting a loan. Our financial education events often open doors for many small businesses who thought a loan was out of their reach, by giving them the tools and contacts they need. Join us next time at one of ACCION USA’s upcoming events!
Amelie Busch is serving as the Kiva Coordinator Intern for ACCION USA during Summer 2010.
Tags: Citi, Financial Education, kiva, workshops
Why We Do This: Greg’s Microfinance Success Story
Elements of financial education appear throughout the lending process. From teaching individuals about the high costs of payday loans to showing business owners how to separate their personal and business finances, ACCION USA equips and empowers entrepreneurs with the education to achieve their financial goals.
Every so often, one of those days comes along that brings you back to the roots of what you do. It’s that client, that partner, that sale or proposal – that something that stands out and reinforces your daily work. It’s what causes you to go home with a smile on your face.
I’m fortunate to work in a place where these days come frequently – weekly, not quarterly. At ACCION USA, our success comes from our clients, and you’ve probably seen our many client success stories. Read one, and you’ll see the power of matching a microloan with the entrepreneurial spirit. It’s exciting, and it’s inspiring.
What you might not see, though, is the added value of financial education – an element of ACCION USA’s service portfolio that makes us unique among microfinance organizations. Elements of our financial education program are weaved into each and every client success story. Whether the client attended a legal counseling workshop, used our online budgeting worksheet, or received a half-hour of technical assistance from a loan consultant, financial education is ever-present in our work.
One of our most recent success stories is a true testament to this service.
Greg’s journey with ACCION USA began in February 2009. He owns an answering service business and needed a loan to keep up with his growing list of clientele. When a damaged credit history and low credit score meant that he didn’t qualify for a loan, Greg demonstrated two characteristics that entrepreneurs tend to possess: persistence and a desire to learn. He contacted our Boston office, determined to understand how he could improve his credit history.
That call was the first of many. Throughout the next year, my colleague Melissa led Greg through the process of improving his score. With her guidance, Greg took control of his debt, improved his credit score over 60 points, and regularly called to check in with Melissa. And his hard work paid off: last month, Greg was approved for a loan.
Greg is proof that financial education can give hard-working, determined individuals the boost they need to realize their entrepreneurial dreams. And all I’m left to say is congratulations. Congratulations to Greg on his persistence and drive to grow his business. Congratulations to Melissa for her dedication.
And congratulations to all of ACCION USA’s supporters for helping connect them. You make this all possible.
Tags: accion usa, client, Financial Education, microfinance, microloan, service, small business, success story, technical assistance, value added, workshop
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
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 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.
Over the Limit? Checking in on the “Plastic Safety Net”
It seems like every day that we witness the impact of changing credit card terms and conditions on small business owners at ACCION USA. This shifting
How safe are small business owners 'plastic safety nets'?
revolving debt landscape is particularly dangerous, given that credit cards have become a “plastic safety net” for many low- and middle-income households, as a new study by non-partisan public policy research group Demos found.
In Demos’ survey of 1,205 low- and middle-income adults, 15% cited small business expenses as a factor in accumulating credit card debt. In June, the New York Times reported that 59% of small business owners rely on credit cards to help finance their day-to-day operations. That’s up from 44% at the end of last year and 16% in 1993. The numbers are enough to generate a growing concern about the so-called ‘plastic safety net.’
Safety net or not, the plastic in these business owners’ wallets is certainly troublesome, as 75% of credit card-dependent small businesses have seen a cut in credit card limits over the last six months. Along with slashed limits, rising interest rates pose an additional challenge for today’s small business owner.
It’s no wonder then that there’s a lot of buzz surrounding the Credit Card Accountability Responsibility and Disclosure Act of 2009, signed into law by President Barack Obama in May. The Act seeks to address many of the challenges faced by entrepreneurs who use their personal credit cards for business purposes. Some of the changes include: delayed onset of penalty interest rates, a longer notice period for changes in terms and conditions, and incentives for timely payments.
Today, many in Congress are working to extend the legislation’s protections to business lines of credit. In the meantime, a word of caution to small business owners who continue to use credit cards to finance small business expenses!
For more information, check out ACCION USA’s overview on the new credit card legislation for more information.