ACCION New York has become the first microlending organization to undergo a CDFI Assessment Rating System (CARS) review. ACCION New York's AAA 3 score, the highest rating possible for impact performance, recognized the organization's positive impact on its target community through clear alignment of mission, strategies, and activities.
The largest microlending organization in the United States, ACCION New York has provided entrepreneurs lacking access to traditional sources of credit with over $65 million in loans, while maintaining a historical repayment rate of 94%. As an innovator in the domestic microlending field, ACCION's variety of microloan products are adapted to meet the needs of metropolitan New York and New Jersey's unique business market.
"Our exceptional CARS rating for impact performance demonstrates that an investment in ACCION New York is an investment in a community that is widely underserved," said Janet Thompson, Chair of the Board. "ACCION New York has proven that it channels investment dollars directly into the hands of entrepreneurs shut out from the financial mainstream." The review also recognized the enhanced data collection and analysis capabilities that allow ACCION New York to effectively track the impact of its lending and business advisory activities.
The financial strength and performance summary portion of the analysis highlighted ACCION New York's growing loan portfolio supported by strong risk management and loan servicing strategies, yet indicated the need for an increase in assets to sustain the organization's plan for future portfolio expansion. Aggressive growth between 2002 and 2005 nearly tripled ACCION New York's loan portfolio from $5.9 million to $14.2 million.
The CARS review was created by the Opportunity Finance Network (OFN), the leading network of private financial intermediaries, to provide potential donors with uniform criteria on which to gauge the fiscal reliability of their investments. Using an underwriting process comparable to systems used to evaluate large financial organizations, the rigorous, four month review process methodically examines the impact performance of a CDFI in addition to factors affecting financial stability. To date, 28 certified Community Development Financial organizations have received CARS ratings since the process was developed in 2004.
ACCION New York, the largest microlending organization in the United States, contributes to the economic development of the New York metropolitan region by providing loans and advisory services to those that do not have access to traditional sources of credit. Since its inception in 1991, ACCION New York has provided over $65 million in small loans to entrepreneurs that do not have access to traditional sources of credit, lending a benchmark $14 million in 2006 alone. Ranging from experienced restaurateurs to home-based businesses and native New Yorkers to recent immigrants, loan recipients have transformed capital into citywide economic development, positive community change, and personal empowerment.
In January 2009, ACCION New York combined operations with ACCION USA.