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Accion MicroLending

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

Program Information

ACCION Texas lends from $500 to $50,000 with terms from 5 to 72 months. As a benefit to our customers we offer credit life and disability to make payments on your loan if you are injured and become disabled. Credit life and a commitment fee of 4% to 9% are added to the loan requiring no out of pocket expense at the time of closing. We require loans to be secured by collateral which is valued at liquidation or trade-in prices. ACCION Texas may also request a cosigner in some cases (Cosigner: A person who does not live in the applicant’s household and is not a principal member of the business. Cosigners must have good credit and the capacity to make the loan payment). ACCION Texas never charges a fee for early payoff of a loan, and even encourages it.

Loan Products

  • Individual Business Loans from $500 – $50,000:
    • Financial ability to repay.
    • Commitment and motivation to improve your business.
    • Good payment history with other creditors, landlords, suppliers, etc.
  • Business Lines of Credit from $5,000 – $25,000:
    • Established businesses with 2 years of financial history
  • Start Up Business Loans
    Entrepreneur must have:

    • Industry experience and personal equity investment of at least 10-20% (depending on loan size).
    • An alternative income source.
    • A business plan and financial projections are required.

Accion Texas SBA 504 Loan Program Information

The SBA 504 program is a long term financing tool for economic development within a community. The 504 program provides healthy growing businesses with affordable long-term, fixed-rate financing for major fixed assets, such as land and buildings.

ACCION Texas, a Certified Development Company, is a nonprofit corporation set up to contribute to the economic development of its community. ACCION Texas works with the SBA and Private-Sector lenders to provide commercial real estate financing to small businesses under the SBA 504 Program.

Typically, a SBA 504 project includes a loan from a private-sector lender covering up to 50% of the project cost, a loan from ACCION Texas covering up to 40% of the cost, and a contribution of at least 10% equity from the small business.

504 financing works best on general projects up to $5 million and on manufacturing projects up to $10 million.

Program Information

Loan Structure

The typical structure for the 504 Loan Program is two-tiered project financing:

  • A Private Sector Lender (usually a bank or non-bank) finances approximately 50% of the project cost and receives a first lien on the project assets (but no SBA guaranty). Must offer a minimum term of 7 to 10 years. May set its own interest rates and fees.
  • SBA provides a 100% guaranteed debenture that finances up to 40% of the project costs secured by a subordinate lien on the project assets. Loan term from 10 to 20 years. Provides a FIXED INTEREST RATE LOAN.
  • The borrower provides the balance of the project costs, (usually 10%).

Borrower’s Injection

Borrowers’s Injection can be:

  • Cash.
  • Form of equity in real estate.
  • In the form of a loan.

Minimum Injection 10%

Limited Use Facility or a Start Up Business 15%

Both Limited Use Facility and Start Up Business 20%

For more information about Accion of Texas, including loan applications, please visit http://www.acciontexas.org  The Austin Area Branch is located at 912 South 183 in the Wells Fargo Building, Suite 201, on the 2nd floor.

866-312-3771 for a loan officer; 512-443-2987 for their fax; and 888-215-2373 for Customer Service.  You can e-mail Ednita Galvan at:  egalvan@acciontexas.org – please tell her I said ‘hey!’