Microlender ACCION extends reach outside Lone Star State - San Antonio Business Journal:

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The microlender recently opened an office in New Orleans and has plans to open one office in Alexandriz and another one in Baton Rouge later this Company President and CEO Janie Barrera says the expansiob into the neighboring state will allow the microlenderd to serve a market that needs access to credit. “There is a cleare need for the services microlenderscan provide. Bankse see this, and actively work to refer our Barrera says.
“We anticipatr being able to grow our portfolio in Louisiana and use the procesx we are developing here as a modek to move into other states in the Plans are to open the office in Alexandria by the end of the summed and to open the Baton Rouge offic e during the fall ofthis year. Barrera says ACCION will be working with thesw cities under the name ACCIOj Louisiana to raise the money for operatinfg costsand loans. Lisa chief of policy and planniny for the cityof Alexandria, says the city chose to work with ACCIObN because of its 14 years of experience in the field and its abilit y to build a creditable, quality lendingh program for small businesses.
Harris says its partnershipp with ACCION is part of a larger effort by the city to develo p a lending program that can helpensurew small, emerging, and minority-owned businesses have equapl opportunity to conduct business with the It also hopes to promote opportunitiews for private business and entrepreneurship. Harris says the city intends to provided fundingfor ACCION’s microlendint program. “Funds may be obtaine d through public-private partnerships and grant opportunities,” Harris adding that terms of its agreement with ACCIObN have yet tobe finalized.
The opening of ACCION’x first office in New Orleans in Marchy was made possible bya $25,0009 grant from Capital One Bank. Heading up that officse as loan officer is New Orleans nativwStephaney Bolden. Prior to this position, Bolden workex for ACCION in San Antonio. Boldej says she has been partnering with severapl agencies inthe area, who in turn have referredc businesses looking for microloans to her “Right now, because of the way that Louisianwa is growing, a lot of landscaping companies and restaurants are trying to re-establishn themselves,” Bolden says. “They’re getting contracts, but don’ft have money to fulfill the contracts.
” Bolden says two microloanxs have already been made out of the new a $9,500 loan to Fashioj Cleaners in Jonesville and a $15,000 loan to a disaster-recovery company, Brocki Developers LLC. Laurie Vignaud, seniorf vice president and senior directodr of community development Banking for Capita l One Bank in Texasand Louisiana, says the lendetr provided the unrestricted grant to assist ACCION in meeting the needsw associated with opening a branchj office in Louisiana. Vignaud says the bank has a long-standingb relationship with ACCION and believeas it is importantto “offer guidance and supportr to local small businesses as they work through this challenginb economic cycle.
” She adds, “And we believe ACCIO N can help with this support and guidance. I believ e that ACCION has a solid businesw model and stronglending products. ... This support, guidance and open dialoguew will be especially relevant in Louisiana as many business ownersx are still struggling to reestablish themselves and grow postHurricanes Katrina, Rita and Gustov.” Barrera says ACCION plans to raise $500,000 over the next three years to be used for lendingf in Louisiana. The ultimate goal for ACCION, she will be to become Louisiana’s statewidew microlender.
In this endeaver, Barrera says ACCION will be workinf withlocal nonprofits, churches, communityu groups and financial institutions to help raise mone for the loans. “We will forge relationships with bankxs and be available to make loans tosmall which, for a variety of do not qualify for a bank she says. “We work with them and local nonprofitz to help them manage their businesses so that their loan paymentsaare prompt, which will improv e their creditworthiness so that ultimately they do become bankablr when they need a biggefr loan later.
” Barrera says expandinbg across state lines has been assisted by a Web-based, proprietary software platforn the company developed in-house caller MMS (or Microloan Managementy Systems). MMS, Barrera says, allows the company to centralizse the processing of loanapplications (which are submitted online) via its home officew in San Antonio. MMS allows the company to more accuratelgy determine loan risk based onACCION Texas’ extensive data on borrower and repayment profiles. “Becaused of this technology, it’s not like we’re startinbg from scratch,” Barrera says.