MicroTest findings show a bright spot for a battered U.S. economy 

Microloans fuel individual business growth and local job creation and retention in low-to-moderate income communities nationwide, according to a MicroTest study released today by leading microlender ACCION USA and the Aspen Institute's FIELD program. 

Amid today's troubled economy and financial turmoil, the study highlights the key role that microlending organizations such as ACCION USA have played in the economic growth of low-to-moderate communities in recent years. Key findings from the study, which tracked the progress of over 100 borrowers from 2006 through year-end 2007, include:

• 50 percent of existing businesses noted an increase in business revenue post-loan, with a median change of $6,298. 
• 61 percent of ACCION USA clients reported an increase in overall household income.
• 51 percent of existing business clients reported an increase in take-home pay, with a median increase of $4,519 (or 18 percent). This is important because business draw contributes more than half of the household income for many of ACCION USA's clients.
• 60 percent of those surveyed reported a take-home pay greater than the minimum wage. When compared to the industry average of 23 percent, this demonstrates that self-employment is a favorable option for many individuals.    
• Among the 102 clients surveyed, 309 full and part-time jobs were represented. 68 percent of businesses have one or more part-time or full-time employees. 
• On average, ACCION USA loan recipients created an average of 1.7 new jobs each.

These findings quantify stories like that of ACCION USA business loan recipient Lucía Saenz, who received a microloan to purchase equipment for La Licuadora, the Peruvian café she owns in Miami's redeveloping downtown. Ms. Saenz now employs five people, with four of these jobs created after her first ACCION USA loan.

As the MicroTest study and Ms. Saenz's story illustrate, microloans have the potential to help small businesses and communities nationwide weather today's economic storm by creating jobs, increasing family incomes, creating taxable revenue, and improving downtown commercial spaces. 

About ACCION USA
ACCION USA is a private, nonprofit organization that serves low and moderate income individuals, primarily minorities and women, who are unable to access mainstream financial services, including small business loans. A pioneer and recognized leader in the domestic microfinance field, ACCION USA is dedicated to providing microentrepreneurs and individuals on the economic margin with the crucial chance to access capital and develop greater financial literacy. ACCION USA is a member of the U.S. ACCION Network, the largest U.S. microlending network, with over $210 million lent since inception in 1991. ACCION USA small business loans range from $500-$25,000 and are offered nationwide via the ACCION USA online lending platform. For more information about small business loans, visit www.accionusa.org.