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.