As Wall Street's fragile state deals yet another blow to struggling small businesses in the form of even stricter bank lending standards, microlender ACCION USA is positioned to meet the financing needs of a new wave of business owners suddenly frozen out by banks. For many of these entrepreneurs, financing from ACCION USA may be a lifeline.
As a leading U.S. microfinance organization, ACCION USA is welcoming business owners suddenly shut out of the mainstream banking sector. "Our mission has always been focused on lending to individuals, who for reasons ranging from lack of credit to an insufficient time in business, cannot access bank credit," says Gina Harman, president and CEO of ACCION USA. The crisis on Wall Street has widened the credit gap, increasing the number of entrepreneurs who find themselves locked out of the capital market.
In fact, the organization has noted an upturn in loan applicants that would have qualified for a bank loan under the standards of old, and expects that even more entrepreneurs will turn to ACCION USA as a financing resource in coming months.
Bridging the Credit Gap
Many of ACCION USA's borrowers are referred by local banks. ACCION USA's flexible requirements make it possible to provide those previously denied by a bank with the capital they need. Unlike other alternative lenders, ACCION USA works with the intention of assisting borrowers in improving their credit and one day qualifying for a bank loan.
"In the coming months, we may see access to credit further restricted," says Ms. Harman. "Protecting and supporting small businesses is in everyone's best interest. Small businesses provide jobs and taxable revenue, assist families and stabilize communities. ACCION USA is committed to lending responsibly to qualified entrepreneurs." Historically, ACCION USA has provided 18,000 loans totaling $115 million in the metropolitan area.
A Commitment to Financial Education
"The best protection for a business owner in this economy is credit and financial knowledge," says Ms. Harman. "We want to reinforce that it's not only possible, but essential, to maintain and build good credit in tough times." To help clients strengthen their financial and credit knowledge, ACCION USA is utilizing targeted one-on-one counseling for borrowers in financial crisis.
About ACCION USA
ACCION USA is a nonprofit microfinance organization that provides access to capital and financial education to low- and moderate-income individuals, primarily minorities and women. A pioneer and recognized leader in U.S. microfinance, ACCION USA empowers individuals to create sustainable businesses, increase family incomes, and contribute to the economic development of cities across the U.S. Since inception in 1991, ACCION USA has provided over $115 million in small business loans ranging from $500 to $50,000, offered nationwide via the ACCION USA online lending platform. For more information about small business loans, visit www.accionusa.org.