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					Lending. Supporting. Inspiring.   ACCION USA Annual Report 2007
Mission                                       Twenty-one Reasons to Hope—and Help
ACCION USA is a private, nonprofit

organization that serves low- and moderate-

income individuals, primarily minorities

and women, who are unable to access

mainstream financial services. A pioneer

and recognized leader in the domestic

microfinance field, ACCION USA is dedicated

to providing microentrepreneurs and

individuals on the economic margin with

the crucial chance to access capital and

develop greater financial literacy.




                                              H
                                                     ope can be hard to come by in the small mill city      school, financial difficulties set in. Jony remembers, “I could
                                                     of Lawrence, Massachusetts, where 21 percent of        see that in a few months we were going to be in the hole.
                                                     the population lives below the poverty line (Boston    So I got in touch with ACCION USA.”
                                              Globe, 4/13/2008). But at the L’Davinci Child Center, there
                                                                                                            Moving quickly, Jony applied for a loan online at
                                              are exactly 21 reasons to hope. In Massachusetts’ poorest
                                                                                                            www.accionusa.org. The process was simple, and they soon
                                              city, 21 children—all from low-income families—spend
                                                                                                            had a cushion of $9,000 to carry them through those first,
                                              each day in the care of Jony and Argentina Perez, who
                                                                                                            difficult months of operations. A year and a half later,
                                              started the preschool nearly two years ago with the help of
                                                                                                            L’Davinci Child Center has several new teachers, a full
                                              ACCION USA.
                                                                                                            classroom, a computer lab and a leased minivan that
                                              The Perez’s business inspiration came from a personal         serves as a school bus. Next year, they’ll open a second,
                                              dilemma: unable to find a quality school for their young      larger classroom specifically for physical fitness, music
                                              daughters that also fit into their budget, Jony and           lessons, and drama and dance classes. With activities like
                                              Argentina decided to start their own childcare center.        that, L’Davinci’s 21 students have not only hope, but a
                                              But just as they were putting the finishing touches on the    little fun, too.




ACCION USA 2007 ANNUAL REPORT
Letter from the President and Board Chair                                                                              2007: By the Numbers



O
           ver the past year, low- and moderate-income men and women across the United States have had a               • 1,458 active borrowers
           front-row seat to the challenges of the economic downturn. And in the midst of skyrocketing gas
           prices, rising food costs and the credit crunch, ACCION USA is working with small business owners           • 2,466 people trained in Your Money & You
throughout the nation to overcome these and other obstacles, so that they can achieve their entrepreneurial
                                                                                                                       • $7.84 million active portfolio
goals. Never before has our work been more important.
                                                                                                                       • 93% historic repayment rate
ACCION USA’s banner products and programs experienced significant growth in 2007. Your Money & You,
our financial education program, trained nearly 2,500 hardworking men and women—many of whom are                       • 1,086 loans disbursed
new to the United States—in credit and business basics. New funding from leading insurance company AIG will
                                                                                                                       • 86% minority clients
ensure the program’s continued success as we roll it out nationally.
                                                                                                                       • 150 Your Money & You seminars conducted
Our online lending application, launched in 2006, enabled over 200 men and women in nearly every state to
access financing for their enterprises in 2007. Meanwhile, our regional offices in Boston, Atlanta, and Miami          • $26 million disbursed since inception
continued to expand, reaching more than 1,100 entrepreneurs with the financial tools they need to work their
way up the economic ladder. And in December of 2007, ACCION USA crossed the $25 million mark in funds
loaned to U.S. microentrepreneurs—a significant milestone as we expand to reach thousands more deserving
men and women excluded from the traditional banking system.


Looking ahead, 2008 and beyond holds great promise for ACCION USA. With great confidence in the
organization’s strong foundation, and excitement for its prospects, Bill Burrus will pass the reins of leadership to   After being laid off from a job in technology, Carlos Mahone has
ACCION New York CEO Gina Harman in June 2008. An integral part of the ACCION family and the industry for               reinvented himself, building a small barbershop empire. With two shops
                                                                                                                       established and a barbering academy in the works, Carlos credits
35 years, Bill has worked to lift millions of hardworking men and women out of poverty through microfinance,           ACCION USA with legitimizing his business and providing the resources
and he leaves ACCION USA well-positioned to continue its trajectory of growth and innovation.                          he needs to grow. “It provided a sense of ease for me to know I have
                                                                                                                       this resource in case I need anything,” he says. “If ever I need funding I
                                                                                                                       know where to go.”
Finally, we wish to thank ACCION USA’s loyal supporters—our bank and community partners, volunteer
leadership, and, most of all, our generous donors—who join us in our mission to improve lives through
economic opportunity. Please accept our deepest gratitude for your continued commitment to ACCION USA
and to the people we serve.




William W. Burrus                                        Terri Ludwig
President & CEO                                          Board Chair




To make a donation, please visit www.accionusa.org and click “Donate                                                                                                                            1
Now” on the home page.
ACCION USA                                    Expanding Economic Opportunity

By providing microloans, financial
                                              ACCION USA LENDING IN 2000                                                      ACCION USA LENDING IN 2007
education and other financial services,

ACCION USA is improving the lives of

low- and moderate-income business

owners who are unable to access credit

from traditional commercial sources. These

borrowers are surmounting economic and

often cultural obstacles to expand their

businesses, support their families, and
                                                                                       Since its founding in 2000, ACCION USA has expanded its reach,
contribute to their communities—all                                                    working with low-income clients in nearly all 50 states and in Puerto Rico.

while repaying their loans at an historical                                                States and territory where        ACCION USA Offices
                                                                                           loans have been disbursed
                                                                                                                             ACCION USA Partner Programs
rate of 93 percent. In 2007, ACCION USA                                                    ACCION USA Licensees


worked with nearly 4,000 enterprising
                                              2007 PROGRAM HIGHLIGHTS
men and women across the nation to
                                              National Reach: Since launching its online loan                                 Financial Education: Your Money & You, ACCION USA’s
strengthen their small businesses and         application in 2006, ACCION USA has disbursed more than                         financial literacy program, is designed to address the unique
                                              400 Internet loans in 45 states and Puerto Rico, totaling                       needs of minority and low- and middle-income individuals.
improve their credit.
                                              nearly $3 million in financing to hardworking men and                           In 2007, the program experienced a tremendous 500
                                              women. The online loan application allows individuals to                        percent growth in activity over 2006, educating nearly
                                              apply for a loan from $500 to $25,000 regardless of their                       2,500 people in credit and business basics, including
                                              location—making ACCION USA the only lender serving                              money management, how to build credit, business taxes
                                              microentrepreneurs nationwide.                                                  and insurance, marketing, financial statements and the
                                                                                                                              fundamentals of running a successful small business.
                                              $25 Million and Beyond: In the seven years since its
                                              inception, ACCION USA has loaned over $26 million to                            Building Credit: ACCION USA is guiding new Americans
                                              enterprising men and women in the United States. With                           into the financial mainstream, $500 at a time. By making
                                              more than 25 percent of new loans applied for online, as                        small “Credit Builder” loans of $500 to immigrants and
                                              well as innovative new partnerships around the country,                         others who lack a credit history, ACCION USA is helping
                                              ACCION USA continues to grow, providing hope and                                individuals to build a credit score to smooth their entry
                                              opportunity to thousands of individuals.                                        into the mainstream financial markets.



2        ACCION USA 2006 ANNUAL REPORT        For more information about ACCION USA, please visit www.accionusa.org.
Your Money & You                                                    ACCION USA 2007 Results

Margarita Amador first came to ACCION USA’s                         As of December 31, 2007                  Regional Offices             Internet Lending               Partner Programs     ACCION USA Total
Boston office in search of a loan to jumpstart her                  Amount Loaned                              $ 5,593,494                    $ 1,065,305                   $    908,952         $ 7,567,751
small business. Unfortunately, Margarita, who is                    Active Loan Portfolio                      $ 5,995,977                    $ 1,027,758                   $    814,139         $ 7,837,874
originally from El Salvador, had bad credit; but unlike             Active Clients at Year End                        1,126                            202                            130               1,458
traditional banks, ACCION USA did not turn her away.                Average First Loan Size                    $      6,874                   $      6,742                  $       7,848        $      6,980
After speaking with a loan officer, she was directed
to the financial education team. Over the course of
three meetings, one of ACCION USA’s Your Money &
You trainers was able to identify Margarita’s issues,                                                                                                Ruben Ramirez was denied a credit card four times before
and together they formulated a plan to get her back                                                                                                  he learned about ACCION USA’s Credit Builder program.
on track.                                                                                                                                            When applying for his first $500 loan, Ruben recalls, “I
                                                                                                                                                     couldn’t believe it! I asked the loan officer, ‘You trust me?’
“I knew if I wanted to keep my business running,
                                                                                                                                                     and she said, ‘Of course!’” He has since taken out another
I could no longer ignore my bad credit,” Margarita
                                                                                                                                                     $500 Credit Builder loan from ACCION USA, as well as a
remembers. “With ACCION USA’s help, I learned
                                                                                                                                                     small business loan of $2,000 for working capital. Though
that I could sign up for a repayment plan with the
                                                                                                                                                     an engineer in Mexico, Ruben found it difficult to survive
creditors. So, we set up a budget and figured out a
                                                                                                                                                     here in the U.S., until he put his skills and drive to work
strategy—now I’ve paid all the creditors back. I also
                                                                                                                                                     and started his own company—High Performance Tile. A
applied for an ACCION USA loan, and I got it!”
                                                                                                                                                     short two years since he received his first Credit Builder
                                                                                                                                                     loan from ACCION USA, Ruben now has more than
                                                                                                                                                     $100,000 in contracts, employs as many as 10 workers,
                                                                                                                                                     and just purchased a new truck—which he financed
                                                                                                                                                     without complication through the dealership.
Ana Hammock, New England Program Director, goes over the basics
of business management in a Your Money and You seminar in Boston.




                                                                    U.S. ACCION Network

                                                                    T
                                                                            he U.S. ACCION Network is composed of ACCION                             economic opportunity, these entrepreneurs, primarily
                                                                            USA and its five licensees: ACCION New York,                             women and minorities, can build assets and better provide
                                                                            ACCION San Diego, ACCION Texas, ACCION                                   for their families. The largest microlending network in the
                                                                    Chicago and ACCION New Mexico. The members of the                                United States, the U.S. ACCION Network has disbursed
                                                                    U.S. ACCION Network provide loans and other financial                            $214 million through a total of 33,202 loans to 20,619
                                                                    services to low- and moderate-income entrepreneurs who                           low- to moderate-income clients.
                                                                    are unable to access bank credit for their businesses. With


                                                                    For more information about ACCION USA’s growth, please visit www.accionusa.org and click “About Us” on the home page.                             3
Financial Summary


                       2007 EXPENSES                 STATEMENTS OF FINANCIAL POSITION                                        STATEMENTS OF ACTIVITIES
                                                     DECEMBER 31, 2007 AND 2006                                              YEARS ENDED DECEMBER 31, 2007
                       Network and New Initiatives
                       11.8%                                                                                                 AND 2006

                       Fundraising
                                                     ASSETS                                 2007             2006            REVENUES                                 2007           2006
                       8.5%
                                                      Cash—operations                  $     172,363     $    695,061         Private contributions             $ 3,234,460       $ 1,963,759
                       General Administrative         Cash and investments                  2,799,917        1,168,905        Investment and fee income             1,400,019         833,010
                       11.1%                          —loan fund                                                              —loan fund
                                                      Grants and contributions              1,798,970        1,337,787       Contracts and fees                      303,554          258,837
                       Lending Operations             receivable
                       68.6%                                                                                                 Other Income                             20,031
                                                      Microloans receivable, net            7,133,197        4,925,950
                                                                                                                             Total Revenues                         4,958,064       3,055,606
                                                      Advances and other receivables         314,963          113,771
                                                      Property and equipment, net             70,394           80,507
                                                                                                                             FUNCTIONAL EXPENSES
                                                           Total Assets                    12,289,804        8,321,981
                                                                                                                              Program Services:
                                                                                                                                Network and new initiatives          592,231          795,005
                       2007 REVENUES                 LIABILITIES AND NET ASSETS
                                                                                                                                Lending operations                  3,474,518       2,311,538
                                                     Liabilities:
                                                                                                                             Total Program Services                 4,066,749       3,106,543
                       Private Contributions          Accounts payable and accruals          234,382          292,760
                       65.2%
                                                      Notes payable                         8,071,000        5,053,000
                                                                                                                              Supporting Services:
                                                      —loan fund
                       Investment and Fee Income                                                                                General and administrative           563,854          542,867
                       —Loan Fund                     Note payable                          1,000,000                –
                                                      —ACCION International                                                     Fundraising                          432,594          310,015
                       28.3%
                                                      Other liabilities                      500,000          500,000            Total Supporting Services           996,448          852,882
                       Contracts and Fees                  Total Liabilities                9,805,382        5,845,760           Total Functional Expenses          5,063,197       3,959,425
                       6.1%

                       Other income                  Net Assets:                                                             INCREASE IN NET ASSETS                  (105,133)       (903,819)
                       0.4%                                                                                                  FROM OPERATIONS
                                                      Unrestricted                           730,899         1,152,403
                                                      Temporarily restricted                1,753,523        1,323,818       ASSET TRANSFER FROM AI                  105,000
                                                           Total Net Assets                 2,484,422        2,476,221
                                                                                                                             NET UNREALIZED GAIN (LOSS)
                                                                                                                             ON LOAN FUND INVESTMENTS                   8,334          (1,923)
                                                     TOTAL LIABILITIES                 $ 12,289,804      $ 8,321,981
                                                     AND NET ASSETS                                                          INCREASE IN NET ASSETS             $       8,201     ($ 905,742)


                                                     ACCION USA received an unqualified opinion for the fiscal year 2007. Complete financial statements for ACCION USA, audited by Deloitte &
                                                     Touche, LLP, are available at www.accionusa.org/annualreport.asp or upon request. For more information, please email info@accionusa.org.




4   ACCION USA 2007 ANNUAL REPORT
Thanks to Our Supporters

ACCION USA BOARD OF                  Ray Ziler                           Filiberto Fernandez, Casa y      Mercantil Commercebank
DIRECTORS                            CFO, PSI Pump/REDW Business            Hogar                         Commonwealth of
(as of June 30, 2008)                  and Financial Resources, LLC      Russell Gee, Private Investor      Massachusetts, Office of Small
                                                                         Tom Roose, Hewlett-Packard         Business & Entrepreneurship
Chair                                ACCION USA                                                           Annette and Ian Cumming
Terri Ludwig                         Advisory Boards                     DONORS                           Cumming Foundation
President, Merrill Lynch                                                 (as of December 31, 2007)        Eagle Group International, LLC
  Community Development              Florida                                                              Enterprise Community Partners,
  Company                            Gordon Fales, Mercantile Bank       $100,000 and above                 Inc.
                                        (Co-Chair)                       American International Group,    Judy and A.J. Johnson
Vice Chair                           Paul Hunt, Coral Gables               Inc.                           The George Link, Jr. Foundation,
James Schoedinger                       Congregational Church            Bank of America Charitable         Inc.
Retired, former President of First      (Co-Chair)                         Foundation                     Madeleine B. Grant
  Data’s Card Issuing Services       Zoraida Fernandez, Washington       John, Amy, Jennifer and James    Laird Norton Tyee Trust Co.
Treasurer                               Mutual                             Berylson                       Richard E. and Nancy P.
Daniel A. Bennett                    Carl A. Fornaris, Greenberg         Community Development              Marriott Foundation
Founder & former CEO,                   Traurig Miami                      Financial Institutions Fund    The Vincent Mulford
  Sunbelt Holding                    Margarita Franqui, International      (CDFI)                           Foundation
                                        Bank of Miami                    Citi Foundation                  PNC Wealth Management
Kimberly Bishop                      Mary Ann Cruz, Premier              The Community Foundation of      James and Susan Schoedinger        Anthony Fernando was an award-winning journalist employed by the
Vice Chairman,                          American Bank                      Louisville                     SunTrust Bank                      American embassy in Sri Lanka before coming to the United States. Upon
   Boardroom Consultants             Louis-Albert Jolivert, JPMorgan     Deutsche Bank Americas           SunTrust Directed Funds -          arriving in California, however, he struggled to find a job—but his daughter
William W. Burrus                       Private Bank                       Foundation                       SunTrust Bank Atlanta            wanted to grow up as an American, and so he persisted. Last year, Anthony
President & CEO, ACCION USA          Beverly Kovach, Mercantil           The New Horizons Fund of           Foundation, Nell Warren &
                                        Commercebank                       Louisville Community             William Simpson Elkin            found ACCION USA through a local development agency and applied for a
Anna Dodson                          William Porro, Office of              Foundation                       Foundation                       small business loan online. Now, he and his wife of 38 years, Vivina, run
Partner, Business Law Division,         Community Development, City      JPMorgan Chase Foundation        Charlotte Taylor Revocable Trust   their own convenience store outside of Los Angeles. “We are working with
  Goodwin Procter LLP                   of Miami                         Brian and Debra Knez             The McGurk Foundation              the same spirit here as we were in Sri Lanka,” Anthony says, “I know we
                                     Jihad Rashid, Coconut Grove         MetLife Foundation               The Upstream Foundation
William J. Fenton                       Collaborative                    City of Miami                    The Wachovia Foundation            will move up, too. With ACCION USA’s help, we will all progress.”
SVP & Market Manager,                Barbara Romani, Citi                Miami-Dade County                The Western Union Foundation
  Community Development, Bank        Danny Santivasci, BankUnited        Charles Stewart Mott             Steven and Denise Wilson
  of America                                                               Foundation
Thomas Fitzgibbon                    Georgia                             Northwest Area Foundation        $5,000 to $9,999                   Michael Broad
                                     A. J. Johnson, Eagle Group          Richard and Susan Smith          Anonymous                                                                 ACCION USA Management
President, MB Financial CDC                                                                                                                  CDFI Fund                              William W. Burrus, President &
                                       International (Chair)             Richard and Susan Smith Family   The Paul & Edith Babson            Citizens Bank
Thomas McDermott                     Jennifer Grier, Federal Reserve       Foundation                        Foundation                                                                CEO
Managing Vice President,                                                                                                                     Congregation of the Humility           Catherine Quense, CFO
                                       Bank of Atlanta (Vice Chair)      Robert and Dana Smith            Christina Bascom                      of Mary
  Healthcare Finance, Capital        Lynette Bell-Ndiaye, SunTrust       UPS Foundation                   BankUnited                                                                Livingston Parsons, III, Senior
  One Financial                                                                                                                              Helen Daly                                Vice President, Lending and
                                       Bank                                                               Christopher Cappy                  Equitable Life Assurance Society
                                     Pamela Cross, Wachovia Bank         $25,000 to $99,999               Crossroads Community                                                         Model Development
César Medina                                                                                                                                 Walter James Hall                      Anne Fish, Vice President,
Senior Vice President & Chief        Beverly Dabney, Washington          Allstate Foundation                 Foundation                      Joseph P. & Patricia K. Crowley
                                       Mutual                            The Aspen Institute              Russell and Linda Gee                                                        Resource Development
  Credit Officer, Banco Popular                                                                                                              Lynne M. Gerber Trust                  Elizete Groenendaal,
                                     Kem Kimbrough, Association          City of Atlanta                  Greenberg Traurig Miami            Jewish Fund for Justice
Maria Otero                            County Commissioners of           The Bank of New York Mellon      Susan C. Kaplan                                                              Vice President, Business
                                                                                                                                             Karuna Trust                              Development & Marketing
President & CEO, ACCION                Georgia                           City National Bank of Florida    Terri Ludwig                       Audrey Larrimer
  International                      Bari Love, Jackson Spaulding        Human Services Coalition of      Mercantile Bank                                                           Erika Eurkus, Senior Director,
                                                                                                                                             Bruce McKinney                            Capital & Brand Development
                                     Reinaldo Pascual, Paul, Hastings,      Dade County, Inc.             Morgan Keegan & Company,           PCI LLC
Allen Rodriguez                        Janofsky & Walker LLP             The John Merck Fund                 Inc.                                                                   Luz Gomez, Senior Director,
Principal, Madera Capital, Inc.                                                                                                              Perls Foundation Investment               Business Development
                                     Wendell S. Reilly, Grapevine        Merrill Lynch Community          Pilot Consulting Corporation          Advisory Account
                                                                            Development Company           The South Financial Group                                                    & Marketing
Janet Thompson,                        Partners                                                                                              Katherine Perls Trust                  Andrea Stiles Pullas,
Retired, former Citibank             Monica Taylor, Best Bank            The David and Katherine Moore    Helen Sperling                     Rockbridge Commercial Bank
                                                                            Family Foundation             Steve and Jean Toeniskoetter                                                 Senior Director, Financial Literacy
  Community Reinvestment                                                                                                                     Erich and Hannah Sachs                 Carolina Velasquez,
  Director                           New England                         Wendell and Mary Reilly Trust    United Way Special Distribution       Foundation
                                                                         The RFP Fund, Inc.                  Account                                                                   Senior Director, Credit
                                     Alan Cody, Duff & Phelps (Chair)                                                                        School Sisters of Notre Dame              & Underwriting
Steven Toeniskoetter                 Edward Hahn, Furman Gregory         City of Somerville               John H. Weitnauer, Jr.
Retired, former President & CEO,                                                                                                             Shield-Ayres Foundation                Ana Hammock,
                                       Hahn, PLLC (Vice Chair)           Washington Mutual                                                   The Sisters of St. Joseph of              New England Program Director
  GE Capital Solutions               Janet Britcher, Transformation                                       Lenders
                                                                         $10,000 to $24,999               Anonymous (2)                         Cardondelet                         William Mateo,
Steve Wilson                           Management                                                                                            Tochri Fund                               Florida Program Director
President, Chartic                   Anne Cerami, TD Banknorth           City of Boston                   Joel Abrams
                                                                         Citizens Bank Charitable         ACCION International               Ruth V. Walden                         Wole Ralph,
                                     Margaret Coughlin, Intelligent                                                                          Washington Mutual                         Georgia Program Director
                                       Marketing Solutions                 Foundation                     Bank of America
                                                                                                          Richard L. Berman                  Woodlands Investment
                                                                                                                                                Management



                                                                                                                                                                                                                        5
Lending. Supporting. Inspiring.



ACCION USA Headquarters and New England Office   ACCION USA Georgia Offices      ACCION USA Florida Office
56 Roland Street                                 Peachtree Center, North Tower   111 SW 5th Avenue
Suite 300                                        235 Peachtree Street            Miami, FL 33130
Boston, MA 02129                                 Suite 2000                      Phone: 305.548.3360
Phone: 866.245.0783                              Atlanta, GA 30303
                                                 Phone: 404.521.0594


www.accionusa.org
www.yourmoney.accion.org                         Savannah Office
info@accionusa.org                               4228 Bull Street
                                                 Suite 202
                                                 Savannah, GA 31401
                                                 Phone: 912.233.5558




                                                                                 Photos:
                                                                                 Rohanna Mertens for ACCION USA

                                                                                 Design:
                                                                                 Ikkanda Design Group, Inc.

                                                                                 Printing:
                                                                                 Hanson Printing




                                                                                 Cover paper used for this annual report was made from
                                                                                 100% postconsumer waste and manufactured using non-
                                                                                 polluting wind-generated electricity. Interior paper
                                                                                 contains 15% postconsumer fiber and is certified by
                                                                                 Green Seal, a nonprofit dedicated to safeguarding the
                                                                                 environment through responsible products.

				
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