Mfa week 3 presentation combined
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Transcript of Mfa week 3 presentation combined
International Rescue CommitteeCenter for Financial Opportunity
9,900,000 Refugees World Wide*
Europe1,733,700
N.Africa, C/SW Asia, Mid East3,811,800
*United States Committee for Refugees and Immigrants - December 31, 2006
Africa2,421,300Americas & the
Caribbean 1,035,900
East Asia and the Pacific 875,100
3,811,800
US Refugee Program
IRC Resettlement Services
Wide assortment of services
from arrival to attainment of
citizenship (up to five years)
Primarily for refugees--
expanding to serve asylees
and other immigrant
populations
Resettlement Offices
IRC San Diego
5348 University Avenue, San
Diego CA 92105
619-641-7510619-641-7510
Founded in 1975
Resettled > 20,000 refugees
Wide spectrum of programs
60,192
74,65273,311
Refugee Arrivals 2007-2010
US
48,281
2007 2008 2009 2010
400
788
12941052
IRC/SD
FY2010 Refugee Ethnic Breakdown
IRC Center for Financial Opportunity
Financial Security
Bundled Services
Case Management
IRC Center for Financial OpportunityMicroenterprise Development
Overview
“From Hardship to
Entrepreneurship”
- Microenterprise vs. Microfinance
- Funding
-Common businesses
- Why is there a need?
Entrepreneurship”
IRC Center for Financial Opportunity
Microenterprise Development: Client Characteristics
- 47% Men, 53% Women
- Regions: East Africa(50%), Iraq and Middle East (30%), Other (20%)Middle East (30%), Other (20%)
- In US less than 5 years: 58%
- Low-Income: 90%
- Previous Biz Experience: 40%
-CA Minimum Wage: $8/hour
IRC Center for Financial OpportunityIssues and Challenges for Refugee
Entrepreneurs:
• Access to Capital
• Access to Technical Assistance• Access to Technical Assistance
• Access to Additional Services
• Ongoing Support
• Linguistically and Culturally Appropriate
IRC Center for Financial Opportunity
Microenterprise Development
Loans
- Character-based- Character-based
- Maximum Loan: $15,000
- Average Loan size: $7,500
- Loans made per year: 15 to 25
- Default Rate: 5%
IRC Center for Financial Opportunity
Microenterprise Development
Technical Assistance
-Advising and Consulting
-Business Planning
-Marketing
-Licensing and Permitting
-Bookkeeping
IRC Center for Financial Opportunity
Microenterprise and Financial Education: Credit Building
Program
-Credit Building loans $100 and $300-Credit Building loans $100 and $300-Average Score at Program Entry: NA-Average Score after 6 Months: 642
IRC Center for Financial Opportunity
Example
Said from Somalia
IRC Center for Financial Opportunity
ExampleSameer from Iraq
International Rescue CommitteeCenter for Financial Opportunity
www.theIRC.org
Joel Chrisco, Program [email protected] Ext. 247
ACCION San DiegoLending. Supporting. Inspiring.
Joe and Vi Jacobs Center
404 Euclid Avenue Ste. 271San Diego, CA 92114San Diego, CA 92114
T: (619) 795-7250T: (800) 967-4429F: (619) 795-7260
www.accionsandiego.org
ACCION’s History
•ACCION San Diego is an affiliate of ACCION International, an organization that began lending in Latin America in 1961
•ACCION USA began a pilot program in New York •ACCION USA began a pilot program in New York in 1991
•ACCION San Diego office opened in 1994
•Now located in 9 U.S. states
•Each office is privately owned, funded & operated
Services We Provide
• Small business loans up to $35,000
• Build or re-build positive credit history
• Help transition clients to banks
• Technical assistance
• Referrals to other business services
• Publicity/networking opportunities
Where does ACCION get its money?
• Private donations
• Grants from foundations• Grants from foundations
• Grants or low-interest loans from banks
• City and government funds
Our Eligibility Requirements
• Live/work in San Diego County
• Six months of business history or previous experience in the industry for start-ups
• Income/expense documentation• Income/expense documentation
• Capacity to make payments
• Reasonable credit report
• Collateral and/or co-signer may be required dependent upon level of risk
• Character
How Much Will the Loan Cost?
• Interest rate starts at 12% APR
• Administrative fees (charged only at disbursal):
•<$5,000: $75 maximum•<$5,000: $75 maximum
•>$5,000: 4% -6% of loan amount depending on loan is security.
• $10-$25 minimum fees for securing interest in collateral
Timelines
How long will it take to get financing?
• 48 hours for quick loans $300-$2,000
•2 weeks for loans $2,001 to $35,000
How long will I have to pay back the loan?
• Depends on size of the loan
• Typically 12-60 months
Next Steps
• Obtain application by mail, email or fax or on our website: www.accionsandiego.orgon our website: www.accionsandiego.org
• Compile and submit supporting documentation for loan request
• Loan Officer will call to schedule site visit
Additional Resources
• SCORE
– (619) 557-7272
• Small Business Development Center
– (619) 482-6391 or (760) 795-8735 (N. County)– (619) 482-6391 or (760) 795-8735 (N. County)
• Consumer Credit Counseling
– 1-866-889-9347
• Credit Agencies
– Experian 1-800-311-4769
– Equifax 1-800-685-1111
– Trans Union 1-800-916-8800
Questions?
In uncertain times, be certain about your lending partnerIn uncertain times, be certain about your lending partner
Small Business Loans
CDC Small Business Finance
background and roles
� CDC’s are financial intermediaries certified by the SBA to administer SBA 504 loans (commercial real estate loans), and other alternative loan products.
� CDC roles: direct lending, loan intermediary, loan packaging,
� CDC roles: direct lending, loan intermediary, loan packaging,
� Creative financing: partnering with other lenders to complete request, loan guarantees
� Statistics (loan volume, conversion ratio, default rate, interest rates)
Loan Evaluation
�What is underwriting???
�How do you decide who to finance?
�Areas of Evaluation (credit, cash flow, �Areas of Evaluation (credit, cash flow, collateral, experience, capital, character, business plan, co-signer, economic conditions)
Credit
� Credit
� www.annualcreditreport.com
� Know what is on your credit and make sure it’s all accurateaccurate
� Scores
� History
� How to establish good credit
Capacity� Historical profits of business as reported on tax
returns.
� Projections.
� Outside sources of income: other employment, � Outside sources of income: other employment, spousal income, military, disability, retirement, rental income, alimony, child support, etc.)
� Personal Liquidity.
Capital
� Capital
� Owner’s injection
� Equity
� Balance sheet (retained earnings or equity)� Balance sheet (retained earnings or equity)
� Equity requirements for existing businesses.
Collateral� What is collateral?
� How important is it?
� What if you don’t have collateral?
Business and Personal Assets.� Business and Personal Assets.
� How much equity do you have in your home?
Experience� How much experience do you need for a start up
business?
� What is your background?
� What if you have no experience in the industry you are � What if you have no experience in the industry you are starting your business in?
Character� Character
� business history
� credit reports
� personal interview� personal interview
� responsiveness
� references
Business Plan� What to include in a business plan.
� How important is a business plan?
� Projections
Conditions� How does the economy affect your industry?
� How recession proof is your business?
Co-Signer� To mitigate weaknesses in other areas, you can bring a
co-signer on board to guarantee the loan.
� Requirements of a co-signer…stable income, good credit, possibly personal assets to secure loan. credit, possibly personal assets to secure loan.
Success Story: San Diego
United Sports Center
Creative PartneringWorld Famous Dog Wash
Contact Information
Susan LampingSenior Community Loan Officer
Main line: (619) 291-3594 ext. 8639 Direct line: (619) 243-8639 Direct line: (619) 243-8639
CDC Small Business Finance2448 Historic Decatur Road, Suite #200
San Diego, CA 92106