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Micro Enterprise Summit Breakout - Local Impacts of Micro Lending

- ME has both direct and indirect impact on the overall economy.
- It also reduces the reliance on the social systems (welfare, food stamps..)
- Positive effects on families. Children see their parents succeeding (dignity building). Has inter generational affects.

- Micro finance enables creativity on a local and personal level

- 'Micro Equity' products are now emerging

- ME lending is a 'wrap around' process including basic financial literacy training, etc...

- Hear beyond the need for a loan.

- "Grow' loans. Start small with clients, help them step up to larger loans.

- Develop network of business owners. This can protect the investments by mutually growing businesses.

Micro Equity Product:
  • VC usually don't go down to ME lending
  • Identify individually already in portfolio who have potently
    • Specifically picking individuals
  • Education about VC is part of the process
    • pros and cons of VC money
Accion NM founded LLC to capitalize loan fund:
  • EQ2 products end up as debt
  • For profit LLC finds investments to consolidate (need to do more investigation on this, check with Anne from Accion New Mexico)
Loan processing - are underwriting policies compatible?

Accion looks at character. As loans increase greater standards are in place.

Competition - you will never beat Wal Mart, Starbucks... However service, creativity, etc... there is an opportunity for niche markets.

When casting vision, talk about real people... not just numbers...
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