March 6, 2015 FINANTA Luis Mora
FINANTA: FIN ancial AN d TA: Mission driven nonprofit lender In business since 1996 Facilitate access to capital, TA, and affordable commercial / office space Philadelphia and surrounding counties Loans from $400 to $3.3 million
FINANTA $41 million in loans (910 loans / 605 borrowers) We serve: Micro & Small Businesses First-Time Homebuyers First-Time Consumer Borrowers Nonprofits We are a CDFI/CDE, PHFA lender, & PA CDFI Among top 5 SBA Microlenders in the country FiCDC
Activity Since 2010 Total Lending – $11.4 million, 613 loans (6 consumer loans $7,200) BIZ > $50K 21 loans / $4 million MORTGAGES 32 loans / $2.7 million PRECAPS 475 loans / $3 million BIZ <= $50K 85 loans/ $1.7 million Lines of Credit 9/$200,000
PRECAPS Groups (PGs) Overview Founded in 2011, PGs is based on the affinity group model where members access their own capital, popular in other countries and in the USA by immigrant groups The FINANTA model provides group members access to individual microloans in cycles with technical assistance emphasizing credit building, accounting and marketing PGs targets affinity groups tied by culture, geography, family, or industry
Case Study – Los Cumplidos Latino grocery and multi-service store owner Loans began at $1,700 in Cycle #1 and $15,000 in Cycle #4 Los Cumplidos’ Antonio de Leon in his business, Josue Grocery, located in West Kensington
Case Study – Woodland African Unity West African variety stores located on Woodland Ave in SW Philadelphia Loans began at $763 in Cycle #1 to $15,000 in Cycle #4 Woodland African Unity group members
WOODLAND AFRICAN UNITY – GROUP SUMMARY, FEB 2015 # 1st Cycle 2nd Cycle 3rd Cycle 4th Cycle Total Loaned Loan Growth Rate Income Status W/MBE Initial Score Current Score Change in Score 1 $1,000$2,500$5,000$15,000$23,500147% Very LowM $500$2,500$5,000--$8,000216% Very LowW/M (8) 3 $1,000$2,500$5,000 $13,50071% ModerateM $1,000$2,500$5,000$15,000$23,500147% ModerateW/M $2,500$5,000$15,000$22,500145% Extremely Low W/M $500$2,500$5,000$15,000$23,000211% Very LowW/M (19) 7 $500$2,500$5,000$15,000$23,000211% LowM (170) 8 $1,000$2,500$5,000$15,000$23,500147% Very LowM $1,000$2,500$5,000$15,000$23,500147% Very LowW/M $1,000$2,500$5,000$15,000$23,500147% Very LowW/M $1,000$2,500$5,000--$8,500124% LowW/M $2,500$5,000$15,000$22,500145% LowW/M $8,500$30,000$60,000$140,000$238, (3)
Our Partners NALCAB TD Bank Bank of America CDFI Fund Citibank Citizens Bank Philadelphia Commerce Department Philadelphia Foundation National Penn Bank Small Business Administration Tides Foundation Wells Fargo