Tuesday, January 14, 2014

San Diego Microlender Sees Record-Breaking Year for Second Year in a Row [Press Release]


Accion San Diego, a nonprofit microlender offering business resources and loans from $300 to $50,000, is reporting another record-breaking year in 2013 with increases in all production categories over 2012 numbers. Its loan portfolio reached a new high, almost hitting $3.9 million in December, a 29 percent increase since the end of 2012. This is the second year in a row that the organization reported record-breaking growth. Accion San Diego is the fastest-growing office in terms of lending volume of the five Accion network offices in the United States.

Amount of loans disbursed was also up 20 percent over 2012, with a record-breaking $2.5 million disbursed in 2013 compared to $2.1 million in 2012. Loan issuance was up 26 percent, with 209 loans made compared to 166 in 2012. Portfolio quality remained strong with a repayment rate above 99 percent.

“Accion’s success in 2013 shows that there is still an immense need for more flexible and accessible capital in the small business community,” said Robert Lopez, Accion’s director of lending. “Though small business lending is up at traditional lenders, these loans are still typically reserved for entrepreneurs with more established credit and at least two years of business history.”

Accion serves primarily low-to-moderate income (LMI) entrepreneurs, with 64 percent of its portfolio being LMI. Many of these clients typically have a difficult time finding capital due to credit issues, language barriers or a lack of understanding of the financial system in the United States.

“The impact of Accion’s program in the community is huge,” Lopez continued. “Our program not only helps individuals achieve their entrepreneurial dreams and provide for their families, but also creates jobs and keeps dollars circulating in the local economy.”

On average, active clients with loans from Accion maintain or generate almost 1,000 jobs for San Diegans.

Funding provided to Accion also increased in 2013 over 2012, with notable gifts including a $100,000 grant over two years from the Leichtag Foundation and a $747,000 grant from the U.S. Department of Treasury’s Community Development Financial Institutions Fund, the single largest gift received in the organization’s 19 -year history.

Accion also saw a 72 percent increase in attendance for its free small business training events in 2013, with more than 693 entrepreneurs attending 13 events during the year.

“Looking forward, I believe that the best is yet to come as our organization celebrates its 20th-anniversary in 2014,” said Lopez. “Building upon the tremendous growth of previous years, we are even better positioned for greater saturation into the San Diego market and have exciting new initiatives planned for this coming year.”

About Accion San Diego
Accion San Diego is a nonprofit microlender dedicated to connecting entrepreneurs with the accessible financing and resources it takes to create or grow healthy businesses. By providing loans ranging from $300 to $50,000, it creates opportunity for increased income, economic stability and employment. Since 1994, Accion has provided more than 2,900 loans totaling more than $18 million in San Diego County.

Accion San Diego is a member of the Accion U.S. Network, the largest micro- and small business-lending network in the United States. The network’s five members have collectively made more than 47,700 loans totaling more than $380 million. Globally, Accion is a pioneer in microfinance, reaching millions of individuals through its international network of partners. For more information on Accion San Diego, visit www.accionsandiego.org.


Press Contact:
Joseph Lee
619.795.7250 ext. 409

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