Acción Texas Inc. – Louisiana Profile

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Investment Summary

 

Investment Market:       Louisiana–Shreveport, abortion
Alexandria, New Orleans
Type of Investment:     Debt
Date of Investment:      7/15/2011
SCF Investment:          $40,000
SCF Investment Term:            3 years
Organization Loan Average:    $12,000
Organization Loan Term:        36 months


Investment Narrative

SCF has targeted its loan funds to benefit small-business loans to low income business owners in New Orleans, Shreveport and Alexandria, Louisiana. The 2011 loan was intended to bolster funds available to ACCIÓN’s new geographic footprint in Louisiana and the 2012 loan continues to support their lending expansion activities.

 

Louisiana Needs Profile

Persons below poverty level, percent, 2006-2010: 18.1%
Median household income 2006-2010: 84%
Unemployment: 7.6%

 

Recipient and Organizational Profile

Recipients: SCF has designated its loan for low income small business owners in targeted cities in Louisiana. Historically, 84% of ACCIÓN’s borrowers have been minorities, with a 50/50 men/woman ratio.

 

Organization: ACCIÓN Texas-Louisiana is an award-winning nonprofit organization established in 1994 in San Antonio, TX. ACCIÓN has helped Texas and Louisiana entrepreneurs strengthen their businesses, stabilize and increase their incomes, create employment, and contribute to the economic revitalization of their communities. ACCIÓN TX-LA expanded into Louisiana in 2009 (4 offices). Its micro loans create employment – almost 2,200 new jobs have been created and 4,000 sustained between June 1994 and 2009.

 

“SCF’s model as a microfinance fund is a great fit with our mission. SCF provides us with targeted capital and allows us to do what we do best in selecting, monitoring and helping borrowers. SCF’s investment with us is targeting our Louisiana markets makes it possible for us to greatly increase our volume of loans in this next target region, specifically to low-income borrowers.”
– Janie Barerra, President & CEO.

 

Other Information

Business lines of credit from $500 to $50,000 for startups and up to $250,000 to established businesses with two years of financial history.