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 SupervisorJoel.chrisco@theIRC.org619-641-7510 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

slamping@cdcloans.com

CDC Small Business Finance2448 Historic Decatur Road, Suite #200

San Diego, CA 92106