Mercy Corps Northwest

2 Quick background Mercy Corps Northwest (est. 1998) is the regional economic development organization of Mercy Corps. Promotes self-sufficiency through microenterprise development and self-employment in Oregon and now Washington. Portland based loan program started in 2001 and expanded into WA state in 2009.

3 Expansion to Washington Loan program already serving Clark County Research with Willamette U. group (need/fill service gaps). Opportunity to respond to economic conditions (broaden reach - online services). Strategic collaboration with WA CASH (leverage resources).

4 Expansion to Washington …continued Change in WA self-employment rate from –15 of 39 counties shrunk from -0.5% to -19.0% compared to the national rate change of +20% (NWAF) Increase in size/scale reduces cost per client which allows us to assist more individuals. –$3,201in 2006 to $2,036 in 2008 (MicroTest) We’re getting better at providing successful loans –lower loan loss rates i.e. 14.4% in 2006 to 5% in 2008 (MicroTest) –lower PAR (loans >30 days past due) from 44% in 2006 to 16% in 2009 (MicroTest) Organizations involved: WA CASH (joint participation), StartZone, WSU EED.

5 Loan Program Serving low-income clients lacking access to capital throughout WA (mobile lending). 74% of MCNW clients are below 100% (HHS) at intake (MicroTest) Online application; Co-branding for partners; Leverage existing resources in the area (SBDC network). WA CASH, StartZone, and WSU EED.

6 Loan Program (cont.) Loan capital and funding sources (federal, state, local, foundations, individuals). Partners and their resources are key to success (example: Grant County team - Latino pilot project). Understand our criteria; Inform intermediaries and entrepreneurs in your community; Contact me!

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8 MicroMentor Web-based service connecting entrepreneurs with skilled business volunteers (ASPEN creation). Increases access to industry-specific and technical expertise via mentoring. Expand client services or scale existing mentoring services.

9 Progress Loans: Since 2001, 191 loans totaling $2 million, 6.6% default rate. Since WA expansion, 8 loans totaling $54K (Trucking loan example – Earned It, Working on Keeping It, Will Grow It!). MicroMentor: 2,030 entrepreneurs enrolled since ,560 mentors enrolled since Overall: 83% of all clients are operating a business 18 months after receiving MCNW services (MicroTest). The average increase in household income 18 months after receiving MCNW services is $6,697 or 23% (MicroTest).

10 Other Initiatives LIFE program (find partner to bring program to WA state). IDA program (AFIA funding, find match to bring into WA state).

11 Final Thoughts Consider this Loan Program and MicroMentor an option only if your community can get serious about investing in other ongoing business support resources on a local level, for example: educating your entrepreneurs as they prepare to go into business, and continuing support as they become established and grow their businesses.

Anthony Gromko, WA Lending Manager