Accion: Resources for Entrepreneurs Mario Cardona Loan Officer

 ACCION Texas – Who We Are  Our History  Our Products and Services  Issues Business Owners Face  Creating a Roadmap to Success  Business and Financial Plans  Tips for Preparing to Access Capital  Resource Partners Overview

Who We Are The mission of ACCION Texas is to provide credit and technical assistance to small businesses that do not have access to loans from commercial sources, and to provide leadership and service to the micro lending field on a national level. A 20 year non profit that is a CHAMPION AND SUPPORTER of small business by PROVIDING small business LOANS and business EDUCATION.

Our History 1994 ATI founded & provided microloans and frontline business support Expanded to Austin and other major Texas metros Today Largest Microlender in the US. Host of WBC, SBA 504, SBA 7a, SBA microloan programs and other private and public funding programs in 8 states Over 15,000 loans provided with over $160M deployed in 20 years.

Our Products and Services To achieve our mission we provide: Loans: – Microloans ranging from $500 to $50,000 – Small Business loans: $50,001 to $250,000 with local funds and as a designated Community Advantage 7a lender – SBA 504 program in Texas market – Special Funding Programs for Veterans Business Education: – Business consultations & business seminars (in house and with partners) Innovation: – Micro lending Management System

Always on your mind…. Accounting and Financial Systems Inventory Equipment Insurance/Bonding/Surety Marketing/Advertising Expansion of Work Force

Creating Your Roadmap to Success expansion execution planning strategy analysis idea

Are you purchasing an existing business, franchising, creating a new business or is the business already established?  Introduction  Business Description  Management and Operations  Products and Services  Industry and Competition  Customers  Marketing and Sales Strategy and last, but not least… The Business Plan

Start – Up Needs Fixed Assets Buildings Equipment Furniture & Fixtures Vehicles Operating Capital Start-up payroll Rent & utilities/deposits Initial Inventory Licenses and permits Working Capital The Financial Plan Fixed Monthly Expenses Advertising Bank fees Insurance Payroll Rent Supplies Taxes Utilities Loan Payment

What are LENDERS looking for?

Capacity: Do you have the ability to repay the loan successfully? (Debt to Income <50%) Character: What is your background, experiences, and expertise? Is your business related to that experience? References are required. Credit History: What does your credit history show? Collection? Charge Off? Bankruptcy? Judgment? Collateral: What type of assets can you pledge to secure the loan? What items have you purchased for your business? Commitment and Motivation: To improve your business and improve your credit Conditions: Do you have a clearly defined purpose of how the loan will be used for your business? How is the industry and economy doing? What does your Business Plan look like? The C’s of Accessing Capital

Tips: Preparing for Financing Prepare a Business Plan Review your credit report Understand your financials Create a sales and marketing plan Do market research Know who your target customers are Create an advisory group – CPA, business attorney and banker

Tips: Preparing for Financing cont.  Gather Your Financials – current YTD/historical  Financial Projections – start ups and young businesses  Gather Current Contracts  Gather proof of upcoming contracts  Bank Statements (3-6 months)  Tax Returns (1-3 years)  DBA or Corporation Documents  Letters of Recommendation

Veteran Owned Businesses In the last 5 years, Accion Texas has made 434 loans to Veteran business owners, totaling $6,339,199 In 2014 Accion Texas has made 86 loans to Veteran business owners, totaling $1,185,209 Special veteran loan funding programs may be available

Build Your Team

Our Differentiating Factor Full one stop shop for aspiring or established business owners. * Support individuals build and establish their credit * Serve as a stop gap * Efficient application process * Creative with collateral * We utilize an internally designed risk formula * No minimum credit score requirement * Interest Rates range from 10.5% to 18% (possibility of lower rates with different loan programs)

Questions?

Mario Cardona : ext : :