Valerie Santacruz of Acción Speaks at August 2007 Morena Business Association Meeting

Valery Santacruz, Loan Officer of Acción San Diego, was our guest speaker at the August 21, 2007 Morena Business Association meeting. Valery explained that Acción San Diego is a non-profit organization whose purpose is to promote community growth. The Acción San Diego office is located downtown, and they cover the entire county of San Diego.

Acción San Diego is a micro lender that lends money to entrepreneurs and small business owners. Each Acción office is independently owned and operated, but each office follows the same rules and guidelines.

Their loan funds come from fundraising, from donations, and from banks that contribute funds to comply with Community Reinvestment Act (CRA) requirements.

She said that Acción is more flexible than a bank, and that it can offer loans from $300 to $35,000, depending on the credit score of the client, the client’s capacity to repay, and an evaluation of how they run their business. They expect their clients to have experience in the business they are going into.

Their goal is to put out fifteen new loans each month to people running businesses in San Diego County. Interest rates are based on the client’s credit rating. Interest rates are fixed and begin at 10%. Loan terms range from six months to 60 months. There is no prepayment penalty.

In approving a loan, they look at financial statements, and they may ask loan applicants for a business plan. They take paid off vehicles as collateral on some loans. Most loans take two weeks to approve, but they now offer a quick loan that can be approved in 48 hours.

They make a special effort to make sure that the loan payment will not be a burden on the business. Acción San Diego loans appear on the person’s personal credit record, so they help individuals to establish credit, so that they may one day go to a traditional money lender.

Acción provides additional services to its clients. It helps clients with installing and using Quickbooks, with credit counseling, and with other business advice. Valery said that Acción has a more personal relationship with clients than traditional lending agencies have. Accion even provides links to their client's businesses on the Acción Web site. They partner with KUSI Channel 9, and they produce and email a monthly newsletter that features a different client each month.

Additional information on Acción can be found on their Web site at www.accionsandiego.org

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