![Page 1: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/1.jpg)
Lending. Supporting. Inspiring.
ACCION USA
GreenMicroloan Program
Elizabeth Garlow
Business & Product Development, ACCION USA
![Page 2: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/2.jpg)
2www.accionusa.org
Who is ACCION USA?
• A nonprofit, community based organization providing access to capital and credit education with over 20,000 clients served with loans averaging $9,000.
• We help individuals strengthen their business, increase their profits, andcontribute to the economic growth of their communities.
• And now, AUSA will help small business improve the environment!
![Page 3: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/3.jpg)
3www.accionusa.org
Agenda
• Why Green?
• How do ACCION USA Green Loans work ?
• Green Resources and Partners
• Additional Q & A
![Page 4: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/4.jpg)
4www.accionusa.org
Triple Bottom Line – greater impact per loan
�PEOPLE
�PROFIT
�PLANET
Why G
reen?
![Page 5: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/5.jpg)
5www.accionusa.org
AUSA Already Provides Green Loans!
� With a $13K AUSA loan, Raquel bought into a green cleaning franchise
using eco-friendly products.
� A $12K AUSA loan to a bike shop helped Andrew invest in marketing
and purchase extra equipment
� A business producing biodiesel products used an $8K AUSA loan to
purchase inventory and relieve the owner dependency on credit cards.
� Marco owns a construction business and used a $12K AUSA loan to
purchase an eco-friendly insulation system, accessing gov programs.
� Ricardo owns a commercial cleaning company and used a $20K
AUSA loan to purchase an eco-friendly carpet cleaner. While the
machine is expensive, it is opening up a whole new market.
Why G
reen?
![Page 6: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/6.jpg)
6www.accionusa.org
AUSA puts “Green” in reach!
AUSA addresses clients’ concerns by offering:
� Financing for the upfront or ‘gap’ costs of going green. We will use cost
savings and rebate programs to strengthen applications
� Support navigating the energy audit process
� Access to free training and educational resources
� Guidance around available incentives, rebates and solutions to reduce
expenses and attract new customers
![Page 7: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/7.jpg)
7www.accionusa.org
How do Green Loans work?
![Page 8: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/8.jpg)
8www.accionusa.org
Green Loan Definition
A “green” AUSA microloan is one
that helps entrepreneurs
incorporate green products,
services or energy saving
principles into their business
operations.
How Green?
![Page 9: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/9.jpg)
9www.accionusa.org
What Qualifies as “Green”?
Investing in Energy / Water Efficiency Measures:
� New Equipment (refrigerators, ovens)
� Facilities upgrades (fluorescent / LED lighting, heating / water
system upgrades, other small appliance upgrades)
Providing Green Services:
� Services or industries that are “green” in nature (weatherization,
eco-tourism, alternative transportation)
Offering / Using Green Products:
� Organic/sustainable forestry/local products
� Recycled materials
� Alternative Energy-related products (biodiesel, solar panels)
How Green?
![Page 10: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/10.jpg)
10www.accionusa.org
Energy Efficiency Loan Benefits
How Green?
$4,33642
$3,71736
$3,09730
$2,47824
$1,85818
$1,23912
Potential Loan IncreaseTerm of Loan
With an Energy Audit …
$103 (14%)Avg Mthly Savings
$753Avg Mthly Utility Bill
$9,036Avg F&B Loan
We add cost savings to the applicant’s monthly income, improving their cash flow and their chances of getting approved.
![Page 11: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/11.jpg)
11www.accionusa.org
Green Resources and Partners!
![Page 12: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/12.jpg)
12www.accionusa.org
Green Entrepreneur Resource Center
ACCION USA created an online ‘Green Entrepreneur
Resource Center’ with:
� Articles and Tip Sheets
� Resource Center for Green Entrepreneurs with links to partner organizations
ACCION USA is engaging our partners as guest experts in a webinar series:
� Branding Your Business for the Green Market
� Making your Business Energy Efficient
� Green Marketing 101
� All About Green Business Certifications
� Sustainability and Leadership (June 22nd!)
� Comenzando un negocio sostenible (June 24th)
![Page 13: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/13.jpg)
13www.accionusa.org
Partnership / Referral Examples
Sell G
reen!
NYSERDA, Mass CEC, EPA (Energy Star)Gov Agencies
DSIRE USA, Nat / Local Restaurant Associations,
Sustainable Business Networks, and YOU!
TA Providers
We’d like to offer green discounts (ex. Green
Depot 10% Discount)
Distributors /
Manufacturers
Work together with energy auditors to help
streamline the process for clients
Energy Auditor
/ Utility
AUSA Partners with organizations to help small
businesses access the $ they need
Banks & Com
Orgs
![Page 14: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/14.jpg)
14www.accionusa.org
Interest Rates
NonePre-penalty Fee
3-6% of the loan amountClosing costs Fees
$30 If Loan is ApprovedApplication Fee
FEES Financed into loan
TERMS up to 60 Months
Equal monthly payments of principal and interest for Growing and Established Businesses
Range in size between $500 - $50,000 or up to $30,000 if not yet profitable
Green Loans
APR 8.99-15.99% for up to $50,000 (8.99% in New York)Green Loans
Rate decreases with each additional loan.Renewal Loans with perfect repayment on previous AUSA loans
![Page 15: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/15.jpg)
15www.accionusa.org
Requirements
Green Loan Program Eligibility:• Energy savings loan requires an energy audit• Equipment purchases must be energy efficient certified• 50% of the loan purpose must be green
General Business Loan:•Six or more months in operation•Credit score of 575 or higher with less than $3,000 in past due debt• No bankruptcies in the past 12 months, no foreclosures in the past 24 months, owning no more than 4 properties• No late payments on rent/mortgage in the past 12 months• Sufficient cash flow to comfortably support monthly loan payments
Additional for Start-up Loans:• Cosigner may be required• If not yet profitable, borrower or spouse must have outside income • All required licenses in place• Market study and 12 months of financial projections
![Page 16: Creative Sources of Funding - Elizabeth Garlow, ACCION USA](https://reader034.vdocuments.us/reader034/viewer/2022042813/5413faf28d7f728a698b4784/html5/thumbnails/16.jpg)
16www.accionusa.org
For More Information…
If you have questions about our green loan program, would
like to apply for a green loan or would like to make a green
loan referral:
Please contact Renzo Mendoza-Castro at
(617) 616-1551 or [email protected]
• Visit www.accionusa.org/green
• Green workshops listed at www.accionusa.org/workshops