BANKING

ACCIÓN Texas-Louisiana’s expansive growth and success is a direct result of its ability to understand and personally serve very small businesses excluded from mainstream financial services.  Borrowers typically have relied on credit cards or expensive and predatory fringe financial services, such as payday loans, check-cashing services, and pawnshops to fund their business endeavors.  In many cases, lack of formal financial statements, blemished credit histories, and limited collateral keep these businesses from qualifying for traditional bank credit.  ACCIÓN seeks to alleviate these conditions by bridging the credit gap with both a committed social and economic focus.

ACCIÓN Texas-Louisiana’s impact on capital access for low and moderate-income families is significant.  A loan from ACCIÓN is often the only available source of credit for many of these entrepreneurs.  More often than not, a small business begins as a necessary second source of household income

ACCIÓN Texas-Louisiana is committed to serving area business, especially those in the medical field.  One client who has benefited from ACCIÓN’s microfinance project is Vanval Medical, a local provider of medical equipment and supplies for rent and retail sale since May 2001.   ACCIÓN financed their first loan in September 2001, and since then has financed various growth projects via six loans over a span of eight years.

AM Medical Supply, Inc. has also received financing from ACCIÓN.  AM Medical distributes medical equipment and supplies throughout the El Paso area.  The corporation was formed in February 2006 and received their first loan from ACCIÓN in June 2007.  The company is young and innovative constantly working with local physicians and home health agencies to serve the elderly and indigent communities.  The company has grown from 3 to 9 employees with the help of their ACCIÓN loan and their novel twist on doing business.

Villa De Niños Pediatric Rehabilitation Center El Paso, LLC specializes in pediatric rehabilitation through physical therapy, occupational therapy and speech therapy.  Their doors opened in March 2007 and their loan was funded in September 2008 to expand their location to accommodate a quickly growing client-base.

Most recently, Myo.Therapy by David received start-up financing from ACCIÓN in May 2010.  Myo.Therapy by David currently provides clinical massage therapy.  The loan received will be used to expand their services to include an educational component that will help patients/guardians involved in massage therapy treatment for individuals who are physically and emotionally challenged.

ACCIÓN Texas-Louisiana provides loans to small businesses that lack access to commercial credit.  ACCIÓN Texas-Louisiana helps start-up and existing businesses with loans ranging from $500-$100,000.  Loan purposes include the purchase of inventory and/or equipment or to enhance working capital. 

Some frequently asked questions regarding ACCIÓN Texas-Louisiana’s microloan program are:

• How does one qualify for a loan?  ACCIÓN will look at the 5 C’s of financing:

• Capacity - financial ability to repay, startups must have an alternate source of income and 20% injection into the business

• Credit - payment history with other creditors, motivation to improve credit score

• Bankruptcy history: no Ch 7 in last 2 years, no Ch 13 in last year

• Collateral - can be tangible business assets, equipment to be purchased with loan or vehicles that are owned free and clear

• Character - personal commitment to start or improve the business

• Conditions of the Market - analysis of market and industry

• How can ACCIÓN help me?  ACCIÓN’s loan program is designed to strengthen your business and credit record so that the business will be “bankable” in the future.

• By offering small business loans at competitive rates

• With access to on-going technical assistance

• By reporting good payment history to credit bureaus to establish business credit

• With help in marketing and networking with other small businesses

• What kind of loan terms and interest rates does ACCIÓN charge?

• Flexible terms varying from 6 to 72 months

• Interest rates are fixed and reflect the market rate and loan risk

ACCIÓN also partners with Project VIDA and the City of El Paso’s Community Development Block Grant (CDBG) to provide additional technical assistance to area business owners.  Assistance comes via monthly seminars covering various topics relevant to local small business; ACCIÓN is located at 1359 Lomaland in the One Stop Business Resource Center, Suite 534, and is open Monday-Friday from 8am-5pm.  ACCIÓN can also be reached at 1-866-312-3775.

Upcoming seminars include:

•El Paso’s Economy – July 22 at 5:30pm – presented by the Federal Reserve Bank of Dallas, El Paso Bureau

•How to Take Advantage of a Financial Crisis – August 19 at 5:30pm – presented by a panel of local business strategists