ACCION Texas Lending. Supporting. Inspiring. Janie Barrera President & CEO

Entrepreneurship “Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.” (Bill Drayton, CEO, chair and founder of Ashoka

ACCION Texas Mission The mission of ACCION Texas is to provide credit to small businesses that do not have access to loans from commercial sources. Through its loans and services, ACCION Texas helps microentrepreneurs strengthen their businesses, stabilize and increase their incomes, create additional employment and contribute to the economic revitalization of their communities.

Business Model Grants for operations Grants for loan pool Investments for loan pool

Our beginning $50,000 grant for operations $150,000 in loans for loan pool 3 full time employees

ACCION Texas ACCION Texas has (*): – 1,773 active clients – $70,486,000 disbursed (since ’94) – 9,067 loans (since ‘94) – $19,348,947 active portfolio – $10,913 average loan Balance – 43 full-time employees (*) As of June 2008 Petra Rosales Owner, Porcelain Dolls By Petra and Jorge

San Antonio, March 1994 McAllen, March 1998 Houston, September 1998 Dallas/Fort Worth, January 1999 Brownsville, May 1999 Austin, May 1999 El Paso, August 1999 Corpus Christi, August 2004 Laredo, September 2005 Arlington, December 2007 ACCION Texas Offices

Results - the “Real Measure ” Largest micro loan portfolio in US – almost $20 million Doubled portfolio in 3 years - great performance – Delinquencies - < 5% – Charge Offs - < 5% – Restructures - < 2% Won 2007 Wachovia NEXT Award as best CDFI of over 600 with $50 million or less in assets. Winner based on community impact, bold and compelling mission, potential for explosive growth

Results - Continued Citi $30 Million Investment - - First in the U.S. AAA CARS Rating nd year in a row Investment Grade Portfolio - - Potential to Rate Other Microloan Funds

ACCION Texas Loan & Micro-Loan Management Service Areas Albuquerque Chicago Cleveland ACCION Texas Loan Program Service Area Micro-Loan Management Service Sites Denver Pierre Columbus

Operational Advantages Disburse over $1 million month/ loan 2 every hour Collateral support system wide – any CSR can support any loan officer – demand based. Cross department support – “Collections a Team Sport at ACCION Texas” Streamlined loan process –

MMS Nationwide Microloan Management Services Proprietary total loan management system developed by ACCION Texas – 2006 Single paperless system from application to payoff – auto process online apps Reduce loan cycle time by 50% High Tech – High Touch Clients on board and commitments

How It Works

MMS With implementation of ACCION Texas Microloan Management System, CDFI micro lenders and other lenders (Credit Union) have the potential: – double their loan production – reduce overhead staff – or a combination of the two. – Savings of time and multiple $ millions

Business Environment: Falling Home Prices Credit Crisis Energy + Food + Healthcare Unemployment: Rising Stocks: Falling Yield Premiums: Increasing

ACCION Texas Response Maintain rates New sources of revenue Prudent increase in provisions Focus on portfolio performance Continue expanding

Conclusion Social and Economic Mission From modest beginnings to biggest and best Our constraint is not eligible clients. It is Capital Proven business practices in a non-profit world Be lowest cost provider of microloans nationally Pursue strategic partners