1. Facilitating Access to Capital and Economic Development through Affinity Group Lending

2. Facilitating Access to Capital and Economic Development through Affinity Group Lending
Sonia Smith
Economic Development/Lender Relations/Public Information Specialist
Small Business Administration (SBA)
Jill C. Fink
Executive Director
The Merchants Fund
HEATHER HANOWITZ
VICE PRESIDENT & SENIOR LOAN OFFICER
PICDC
PANEL MODERATOR
Steve Kuzmicki
Economic Development Project Manager
Southwest CDC
Kersy Azocar
Sr. VP of Microlending
FINANTA

3. FINANTA
OUR MISSION:
Founded in 1996, FINANTA is a mission-driven nonprofit lending institution facilitating access to capital and consultation services to entrepreneurs, first-time homebuyers, and consumers.
We accomplish our mission by lowering the barriers that keep people from accessing the capital to build assets and evolve financially.

4. Programs Affinity Group Lending Individual Lending
Business, Consumer, First-Time Homebuyer
Individual Lending
Technical Assistance
Financial Counseling and Coaching, Credit Builder Loans
Community Development Financing
Mission driven real estate development

5. What Problem do we solve?
In the United States, more than 26 million households and families are excluded from Traditional Banking
FOCUS On ECONOMIC EMPOWERMENT
Reasons why Buss Fail:
82% pf Businesses fail due to cash flow problems (Source: FUNDERA)
76% Marketing Challenges
43% don’t have the right product
23% don’t have the right team

6. Our Solution: Create a Pathway for Capital Access
FOCUS On ECONOMIC EMPOWERMENT
Desarrollo economico

7. TRADITIONAL ROSCA OR LENDING CIRCLES
Short for ROtating Savings & Credit Association
People in an Affinity Group, or Peer Lending Circle use their own money to lend it to each other in a rotating basis. It does not build credit or provides access to a financial entity.

8. Affinity Group Lending: OUR APPROACH
1. Receive a Month individual Loan
2. Build an Individual Financial Action Plan (FAP).
3. Build financial skills –Monthly workshops and 1-on-1 Meetings.
4. Complete loan repayment by the end of the cycle.
5. Groups may participate in additional cycles
Starting at $1,200 or $3,600
12 month / 9% fixed loan
Build capacity to access up to $25,000 / 24 month in in several borrowing cycles
Clients can graduate to up to $250,000 loans
Groups of Up to 15 individuals

9. Ella Emprende

11. Averaging 240 hrs of entrepreneurial capacity building by cycle 5
CREDIT BUILDING & T.A.
Client-Centered Financial Action Plan
(FAP)
Increase knowledge of credit
Build, manage, and increase a credit score
Build financial capacity to access capital
Averaging hrs of entrepreneurial capacity building by cycle 5
Up to 30hrs
of TA preparing
to borrow

12. PARTNERSHIPS & COLLABORATIONS

13. Small Business Administration (SBA)
Sonia Smith
Economic Development/Lender Relations/Public Information Specialist
Small Business Administration

14. The Merchants Fund
Jill C. Fink
Executive Director
The Merchants Fund

15. Southwest CDC Steve Kuzmicki Economic Development Project Manager

16. CONNECT with us! Facebook: https://www.facebook.com/Finanta.org
Twitter: 
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