Both Accion and the Austin CDC invest in small-scale businesses by lending capital from private sources — banks, corporations, and foundations — along with government grants. But they specialize in different kinds of loans. Accion offers smaller loans and will invest in start-up enterprises. The Austin CDC emphasizes job creation and neighborhood revitalization in poor areas, and invests only in existing businesses. Below are stats on the nonprofits’ performance.
Accion Texas
(statewide, as of March 31)
Total Dollars invested since 1999: $9,420,967
Number of loans: 2,623, to businesses with median asset level under $5,000
Loan amounts: Up to $25,000
Typical borrowers: Taxi drivers, construction contractors, day care providers, food vendors, Mary Kay consultants, retail, and home-based businesses
Loan default rate: 4%
Percent of loans to minorities and women: 61% to African-Americans and Hispanics (Austin only); 53% to women
Self-sufficiency: Accion covers about 57% of its operating costs through interest and fees.
Contact Info: To make a contribution, volunteer to counsel clients on their business plans, or seek a loan from Accion Texas, call 888/215-2373 (www.acciontexas.org)
The Austin Community Development Corporation
Total Dollars invested since 1994: $4 million
Number of loans: 88
Loan amounts: $25,000 to $80,000
Typical borrowers: Day-care providers, food vendors, auto mechanics, construction firms, health-care providers
Loan default rate: 6.5%
Percent of loans to minorities and women: 81% to African-Americans and Hispanics; 38% to women. Nearly all Austin CDC loans are to businesses in low-income census tracts.
Self-sufficiency: Austin CDC covers about 80% of its operational costs through interest and fees.
Contact Info: To seek a loan, volunteer as an entrepreneurial mentor, make a contribution, or invest as an Austin Equity Partner in the Austin Community Development Corporation, call 472-8087 (www.austincdc.org)
This article appears in August 10 • 2001.