Not enough savings, and a plan for a store? ACCION San Diego gives microfinance loans to local entrepreneurs that fill up a business account with enough money to make good on unfinished plans to start a business, or grow one after a fresh start succeeds.
Defeat at the bank loan agent's table is the common story for an ACCION client, or even mockery. Kenneth Sanders was rejected more than once by a bank, and laughed at once. Now, he runs ASAP Carrier Services delivering tires, rims, and equipment from American Racing warehouse in Chua Vista, and still runs his old cleaning service with his friend Ernest, but left his days of two full time jobs behind. ACCION gave Kenneth three consecutive loans so he could carry out his plans.
Amy Capano, with the money from an ACCION loan, was able to add to her inventory at Cathedral, on University Avenue and Fourth Avenue in Hillcrest, a candle boutique that also sells shades and vases.
J&B Computers in San Carlos and Dallman Confections chocolate company in El Cajon are on ACCION's long list of over 1,500 successful clients that received loans since 1994.
The non-profit hands out the loans without a hitch, just a 12 percent interest rate to start. Quick loans given out in 48 hours are $2,000 or less. Clients with the commitment to an enterprise ACCION asks for to approve a regular loan get $2,001 to $35,000.
The loans are designed to seed the business start and give an entrepreneur the capital needed to grow. Expansion, and a change into a greater enterprise are both reasons to lend again.
Clients get the opportunity to not only compete for customers, but play a part in the revitalization of their San Diego communities. The non-profit receives funds from banks under the the Community Reinvestment Act, a law that channels money into the hands of low and moderate income entrepreneurs. Revitalization, according to ACCION, comes with the successful business loan clients produce in their communities.
ACCION works with partners to make sure clients have the money they need.
A third annual networking event happens this Thursday, April 28th, at the Joan B. Kroc Peace & Studies Institute at USD. Client meetings with credit counselors and investors can pay off. Elizabeth Makee, executive director at ACCION and one of the founders of the San Diego Microfinance Alliance, will tell locals at the San Diego Microfinance Summit about opportunities to work in a microfinance career during an afternoon breakout session.
The mission is to equalize investment dollars and the enterprise costs low income locals living in old urban communities experience.
Difficult circumstances. A gap between the cost of a dream and money in an account. ACCION San Diego does not let the hurdles stop a San Diego entrepreneur.
To read earlier articles in Citizen Agenda Action Line on Tuesdays, read
Private business improvements in East Village
Tossing a balanced position in the political ring
Change and exposure for San Diego actors
Model spare time
Court robes and right conduct
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