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Organization DBA Accion East
Former Names ACCION U. S. A., Inc. (2012)
Organization received a competitive grant from the Boston Foundation in the past five years Yes

Summary

Mission StatementMORE »

Accion East empowers small business owners through access to capital and financial education.  With economic opportunity, these entrepreneurs--often minorities and women--can build assets, better provide for their families, create employment and strengthen their communities.

Mission Statement

Accion East empowers small business owners through access to capital and financial education.  With economic opportunity, these entrepreneurs--often minorities and women--can build assets, better provide for their families, create employment and strengthen their communities.

FinancialsMORE »

Fiscal Year Jan 01, 2017 to Dec 31, 2017
Projected Income $8,757,779.00
Projected Expense $7,789,642.00

ProgramsMORE »

  • New England Financial Education Program
  • New England Lending Program
  • Samuel Adams and ACCION USA Brewing the American Dream Program

Revenue vs. Expense ($000s)

Expense Breakdown 2015 (%)

Expense Breakdown 2014 (%)

Expense Breakdown 2013 (%)

For more details regarding the organization's financial information, select the financial tab and review available comments.


Overview

Mission Statement

Accion East empowers small business owners through access to capital and financial education.  With economic opportunity, these entrepreneurs--often minorities and women--can build assets, better provide for their families, create employment and strengthen their communities.

Background Statement

Accion East (formerly ACCION USA) was established in 1991 as the domestic arm of Accion International, a pioneer of global microfinance. Initially piloted in Brooklyn, NY, Accion sought to meet the needs of low- to moderate-income (LMI) individuals as they grew and sustained their small businesses by providing them with microloans and complementary financial education.  Based on the success of the program, Accion expanded into major metropolitan hubs along the east coast, including Boston. More than two decades later, Accion has provided over $130 million to over 20,000 entrepreneurs and individuals serving a clientele that is 87% low-to-moderate income, 76% minority (including 71% African American and Hispanic) and 43% women.

Since beginning operations in Massachusetts in 2000, Accion has infused local communities with over $13 million in over 3,500 microloans to support small business owners and individuals. Notably, we have been instrumental in providing credit to recent immigrants, particularly to Hispanics and Brazilians with little to no credit history. 

Accion loans benefit not only our clients, but their families and communities as well. Our history of serving LMI communities has resulted in Accion receiving certification as a community development financial institution (CDFI) from the U.S. Department of the Treasury, certifying that Accion has a primary mission of serving low- to moderate-income communities. In addition, Accion recently was given the SBA award for providing the most microloans in Massachusetts in 2012.

Please note that Accion, a Massachusetts-entity (EIN 04-3219159), merged with our Accion US Network affiliate ACCION New York and New Jersey effective January 1, 2009.  In 2012, we changed our name to Accion East and Online.  Today, we are doing business as Accion East under the EIN: 11-3317234.   


Impact Statement

 Recognition & Awards:

In 2015, Accion was selected as the U.S. Small Business Administration's Massachusetts Microlender of the Year for providing the highest volume of microloans to small business owners in the state. In addition to our recognition for our impact within the small business community in Massachusetts, Ana Hammock, our VP of Lending, was again named one of the most influential people for Massachusetts’ Latino Community in 2015.

At Accion we take our mission to empower the small business community seriously. Recognition of our commitment continues to show in many areas. Last year, Accion received our third consecutive 4-star rating on Charity Navigator. Only 19% of the thousands of charities rated on Charity Navigator have earned this distinction. We're proud to be recognized as an institution that values accountability and transparency, to ensure charitable support is going directly to the business owners we serve.

In addition to much of the recognition we’ve received in the past year Accion was also selected as a recipient of the CDFI Fund’s annual competitive grant making. The grant Accion received, totaling $1.75 million, reflects the federal institution’s belief that Accion’s work is critical to the communities we serve. The grant will ensure that we have the capital required to continue meeting our clients’ needs as we grow our lending, continue cultivating partnerships and launch new products and services. We’re honored to have the support of the Treasury Department in our mission to make financial inclusion a reality.

Programs, Financial Counseling & Lending:

In recent years we have also worked on expanding our outreach and services to provide more in-depth support to the entrepreneurs we serve. Since launching this initiative we have successfully established a certified credit counseling program to more comprehensively support declined loan applicants. This service provides intensive one-on-one counseling, step-by-step instruction and follow-up support.

We also continue to work closely with the Samuel Adams Boston Beer Company. Last year we held one of our signature Speed Coaching events at the brewery in Jamaica Plain. This event brought together food, beverage and hospitality entrepreneurs with industry professionals in one-on-one technical assistance sessions. Participants met with marketing, public relations, packaging and sales & distribution experts from the Boston Beer Company, as well as community business consultants, accountants, and legal experts. Business owners brought their branding and marketing challenges and receive practical advice and guidance tailored to their own business.

Additionally, our New England portfolio remained strong last year. We disbursed over $1,674,300 in microloans to 204 individuals and small businesses, and provided financial education and mentorship in English, Portuguese and Spanish to over 708 entrepreneurs.

Across our markets, we disbursed $10.2MM in microloans to 1163 small businesses owners in the U.S. We created and/or sustained 10,942 jobs. These small businesses created an economic ripple effect, strengthening household incomes, creating employment opportunities, and revitalizing local communities.

In 2016, we strive to increase loan production across all of our markets by 13% with a goal of disbursing over 1,300 microloans. In addition, we are positioned to provide technical assistance to over 10,000 entrepreneurs through individual sessions and by means of our innovative partnerships.


Needs Statement

Technology

The Foundation’s support of a new lending platform will allow us to scale our work in New York and beyond through the development of a truly national operating model, leveraging the lower cost and ubiquity of technology as drivers to scale. For microlenders, scaling means increasing staff productivity by creating efficiencies in the lending process. This creates more capacity for the customized support that cannot be automated, in addition to increasing the number of businesses we serve with loans. The cost of the program is $300,000.

Marketing

An integral part of the work at Accion is reaching underserved communities. Expansion of our marketing budget by $16,000 is essential to reach the English, Spanish, and Portuguese entrepreneurs in the New England area who would benefit most from our work.

Outreach

The key challenge to serving these business owners remains accessing them. Our grassroots outreach is limited by our resources and dependent upon staff time. However, through investing time and travel to establish strong partnerships, we can efficiently and effectively grow our ability to reach and serve business owners who struggle with attaining capital through traditional banks. Investment in outreach is estimated at $96,690.

Volunteers

Accion relies on the extraordinary talent and contributions of our volunteers, who spent over 17,000 hours of their time volunteering for Accion last year —a $448,000 value to us and the equivalent of over 9 full-time staff. Investment in training and organizing volunteers is estimated at $30,000.

 


CEO Statement

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Board Chair Statement

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Geographic Area Served

Throughout the United States
Greater Boston Region-All Neighborhoods

We serve greater New England, New York, Florida and the entire country by way of our online lending platform.

Organization Categories

  1. Community Improvement, Capacity Building - Economic Development
  2. -
  3. -

Independent research has been conducted on this organization's theory of change or on the effectiveness of this organization's program(s)

Yes

Programs

New England Financial Education Program

As a complement to our loan program, Accion offers free financial education to any business or individual who seeks our services. We provide one-on-one counseling and conduct a number or workshops and events with area partners throughout the year. In addition, all of our loan information and financial tip sheets are available in English, Portuguese and Spanish.  

Budget  $300,000.00
Category  Community Development, General/Other
Population Served Poor,Economically Disadvantaged,Indigent Immigrant, Newcomers, Refugees Hispanic, Latino Heritage
Program Short-Term Success   
Program Long-Term Success   
Program Success Monitored By   
Examples of Program Success   

New England Lending Program

This program provides loan capital and technical assistance to small business owners with little or no access to traditional financial services.  Accion is a safe alternative to high-interest credit cards and predatory fringe financial services. Many choose Accion to start or grow their small business because of our flexible underwriting practices. Our approach goes beyond credit scores and typical bank criteria to include items such as character assessment, the potential of the entrepreneur and his or her business, references, etc. All of our services are offered in English, Spanish and Portuguese.

Budget  $700,000.00
Category  Community Development, General/Other
Population Served Poor,Economically Disadvantaged,Indigent Immigrant, Newcomers, Refugees Hispanic, Latino Heritage
Program Short-Term Success 

Our services have a proven impact in Greater Boston. Our clients report an 11% increase in take-home pay – money that is funneled directly back into their communities. Each Accion business creates or sustains an average of 4.4 jobs. Importantly, these jobs pay $11/hr on average – 52% more than federal minimum wage – and provide our minority clients with a vehicle to escape the traps of debt and poverty. Perhaps most importantly, we prepare our clients for long-term success: 98% of Accion’s clients are still open one year after receiving a loan.

Program Long-Term Success  We help clients establish and grow their credit scores, laying the groundwork for future loan from banks and other traditional business finance sources. We are committed to our mission of helping independent businesses succeed.
Program Success Monitored By 

Accion collects detailed survey data at several stages in order to assess client demographics, outcomes and program performance.

Pre-loan data collection: Accion uses a client management system and loan processing technology to internally track client data and outcomes. We collect demographic information on the applicant as well as a detailed financial picture of their business. 


Post-loan surveying: Our MicroTracker Outcomes Survey, conducted in partnership with the Aspen Institute, randomly surveys over 100 Accion clients annually, in order to measure outcomes such as whether they are still in business, business contributions to household income and the borrower’s savings.

Examples of Program Success 

Every year, Accion measures the impact of our program on our clients’ businesses, incomes and wages. In conjunction with the Aspen Institute’s FIELD program, clients are randomly selected to participate in this survey. Based on our 2012 study, we expect that our program in 2013 will:

 

  • Create Jobs: Accion East businesses create and support an average of 4.4 jobs.
  • Help businesses expand: Accion East businesses experience a 7% increase in business revenues within one year of receiving a microloan.
  • Keep our clients’ businesses open: 98% of Accion East businesses are still open one year after receiving a loan.
  • Improve quality of life: Accion East business owners experience an average increase of 11% in take-home pay.
  • Help families: 88% of Accion East business owners report that their business improves or stabilizes their household.

Samuel Adams and ACCION USA Brewing the American Dream Program

 

This unique program was designed to help the food, beverage and hospitality entrepreneurs of New England receive the tools they need to ensure their small businesses succeed.  The program is designed to couple loan capital with ongoing mentorship and networking events. Throughout the year, Accion and Samuel Adams host innovative Speed Coaching events which bring together entrepreneurs in these fields with industry professionals for specialized one-on-one sessions in areas of marketing, branding, product development, cash-flow management, book keeping, credit development and more.

 

Budget  $100,000.00
Category  Community Development, General/Other
Population Served General/Unspecified
Program Short-Term Success   
Program Long-Term Success   
Program Success Monitored By   
Examples of Program Success   

CEO/Executive Director/Board Comments

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Management


CEO/Executive Director Mr. Paul Quintero
CEO Term Start Feb 2011
CEO Email [email protected]
CEO Experience

Prior to assuming the responsibility of Chief Executive Officer, Mr. Quintero joined Accion East as the Chief Financial Officer following his work as Senior Vice President of Business Investments at the Upper Manhattan Empowerment Zone (UMEZ). During his time at UMEZ, Mr. Quintero successfully closed over $25 million in direct investments and $57 million in triple-tax exempt financing for community development projects that include the largest "big-box" retail development in Manhattan, the largest microloan fund in New York State history, and other development firsts. Mr. Quintero, a licensed Certified Public Accountant (CPA), earned a BA in Business Administration and Accounting from the University of Washington and completed his MBA from Columbia Business School.

Co-CEO --
Co-CEO Term Start --
Co-CEO Email --
Co-CEO Experience --

Former CEOs and Terms

Name Start End
-- -- --

Senior Staff

Name Title Experience/Biography
Paul Quintero CFO & COO --

Awards

Award Awarding Organization Year
-- -- --

Affiliations

Affiliation Year
-- --
Member of state association of nonprofits? Yes
Name of state association --

External Assessments and Accreditations

External Assessment or Accreditation Year
-- --

Collaborations

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CEO/Executive Director/Board Comments

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Foundation Comments

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Staff Information

Number of Full Time Staff 46
Number of Part Time Staff 1
Number of Volunteers 4
Number of Contract Staff 0
Staff Retention Rate % --

Staff Demographics

Ethnicity African American/Black: 1
Asian American/Pacific Islander: 2
Caucasian: 19
Hispanic/Latino: 24
Native American/American Indian: 0
Other: 0
Other (if specified): --
Gender Female: 28
Male: 18
Not Specified 0

Plans & Policies

Organization has Fundraising Plan? Yes
Organization has Strategic Plan? Yes
Years Strategic Plan Considers --
Management Succession Plan --
Business Continuity of Operations Plan --
Organization Policies And Procedures Yes
Nondiscrimination Policy Yes
Whistle Blower Policy Yes
Document Destruction Policy Yes
Directors and Officers Insurance Policy --
State Charitable Solicitations Permit --
State Registration --

Risk Management Provisions

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Reporting and Evaluations

Management Reports to Board? Yes
CEO Formal Evaluation and Frequency Yes Annually
Senior Management Formal Evaluation and Frequency Yes Semi-Annually
Non Management Formal Evaluation and Frequency Yes Semi-Annually

Governance


Board Chair Mr. Dennis Lagueux
Board Chair Company Affiliation SVP, Community Development, TD Bank
Board Chair Term Jan 2015 -
Board Co-Chair --
Board Co-Chair Company Affiliation --
Board Co-Chair Term -

Board Members

Name Company Affiliations Status
Mr. Kevin Boes President & CEO, New Markets Support Company Voting
Mr. William Brown Executive Vice President, Head of US Network, HSBC Voting
Mr. Rick Calero EVP, Consumer Banking, Umpqua Financial Holdings Voting
Mr. Peter Cureton Program Manager, Investment Banking Global Project, Credit Suisse Voting
Ms. Colleen Galvin Senior Vice President, Community Development, Citi Voting
Mr. Michael Henry Partner, Accenture Voting
Mr. Sudhir Jain Managing Director, Citi Voting
Ms. Kimberly Johnson Partner, KPMG LLP Voting
Mr. Thomas McDermott Chief Executive Officer, Money Access Financial, LLC Voting
Ms. Laura Miller Chase Bank Voting
Ms. Roshelle Nagar Weil Gotshal & Manges Voting
Ms. Mia Parker Vice President, Goldman Sachs Foundation Voting
Ms. Lisa Servon Associate Professor, Milano The New School for Mgmt & Urban Policy Voting
Ms. Cristina Shapiro Vice President, Urban Investment Group, Goldman Sachs Voting
Ms. Gail Smith Publishing/Managing Director, Impacto Latin News, Inc Voting
Mr. Tyler Van Gundy Vice President, Forsyth Street Advisors Voting

Constituent Board Members

Name Company Affiliations Status
-- -- --

Youth Board Members

Name Company Affiliations Status
-- -- --

Advisory Board Members

Name Company Affiliations Status
-- -- --

Board Demographics

Ethnicity African American/Black: 0
Asian American/Pacific Islander: 0
Caucasian: 11
Hispanic/Latino: 4
Native American/American Indian: 0
Other: 0
Other (if specified): --
Gender Female: 7
Male: 11
Not Specified 0

Board Information

Board Term Lengths 4
Board Term Limits --
Board Meeting Attendance % 95%
Written Board Selection Criteria No
Written Conflict Of Interest Policy Yes
Percentage of Monetary Contributions 100%
Percentage of In-Kind Contributions 100%
Constituency Includes Client Representation No

Standing Committees

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CEO/Executive Director/Board Comments

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Foundation Comments

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Financials


Revenue vs. Expense ($000s)

Expense Breakdown 2015 (%)

Expense Breakdown 2014 (%)

Expense Breakdown 2013 (%)

Prior Three Years Total Revenue and Expense Totals

Fiscal Year 2015 2014 2013
Total Revenue $8,215,759 $6,733,637 $6,878,929
Total Expenses $6,689,279 $5,787,634 $6,627,630

Prior Three Years Revenue Sources

Fiscal Year 2015 2014 2013
Foundation and
Corporation Contributions
-- -- --
Government Contributions $0 $0 $0
    Federal -- -- --
    State -- -- --
    Local -- -- --
    Unspecified -- -- --
Individual Contributions $5,752,641 $4,684,734 $5,152,627
Indirect Public Support -- -- --
Earned Revenue $662,988 $617,795 $429,618
Investment Income, Net of Losses $1,304,853 $1,019,558 $858,819
Membership Dues -- -- --
Special Events -- -- --
Revenue In-Kind $220,749 $154,774 $177,515
Other $274,528 $256,776 $260,350

Prior Three Years Expense Allocations

Fiscal Year 2015 2014 2013
Program Expense $5,377,171 $4,731,750 $5,326,813
Administration Expense $647,045 $678,916 $778,374
Fundraising Expense $665,063 $376,968 $522,443
Payments to Affiliates -- -- --
Total Revenue/Total Expenses 1.23 1.16 1.04
Program Expense/Total Expenses 80% 82% 80%
Fundraising Expense/Contributed Revenue 12% 8% 10%

Prior Three Years Assets and Liabilities

Fiscal Year 2015 2014 2013
Total Assets $18,090,246 $14,312,477 $14,439,355
Current Assets $7,235,606 $4,902,520 $6,145,499
Long-Term Liabilities $10,385,425 $7,331,100 $6,892,282
Current Liabilities $1,463,598 $2,266,634 $3,778,333
Total Net Assets $6,241,223 $4,714,743 $3,768,740

Prior Three Years Top Three Funding Sources

Fiscal Year 2015 2014 2013
1st (Source and Amount) -- --
-- --
-- --
2nd (Source and Amount) -- --
-- --
-- --
3rd (Source and Amount) -- --
-- --
-- --

Financial Planning

Endowment Value --
Spending Policy --
Percentage(If selected) --
Credit Line Yes
Reserve Fund Yes
How many months does reserve cover? 3.00

Capital Campaign

Are you currently in a Capital Campaign? No
Capital Campaign Purpose --
Campaign Goal --
Capital Campaign Dates -
Capital Campaign Raised-to-Date Amount --
Capital Campaign Anticipated in Next 5 Years? --

Short Term Solvency

Fiscal Year 2015 2014 2013
Current Ratio: Current Assets/Current Liabilities 4.94 2.16 1.63

Long Term Solvency

Fiscal Year 2015 2014 2013
Long-term Liabilities/Total Assets 57% 51% 48%

CEO/Executive Director/Board Comments

Please note that Accion East, a Massachusetts-entity (EIN 04-3219159), merged with our ACCION Network affiliate ACCION New York and New Jersey effective January 1, 2009.  Today, the combined organization is doing business as Accion East under the EIN: 11-3317234. 

Foundation Comments

Financial summary data in the charts and graphs above is per the organization's audited financials, reflecting the operations of both affiliates. Contributions from foundations and corporations are listed under individuals when the breakout was not available.
 

Documents


Other Documents

No Other Documents currently available.

Impact

The Impact tab is a section on the Giving Common added in October 2013; as such the majority of nonprofits have not yet had the chance to complete this voluntary section. The purpose of the Impact section is to ask five deceptively simple questions that require reflection and promote communication about what really matters – results. The goal is to encourage strategic thinking about how a nonprofit will achieve its goals. The following Impact questions are being completed by nonprofits slowly, thoughtfully and at the right time for their respective organizations to ensure the most accurate information possible.


1. What is your organization aiming to accomplish?

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2. What are your strategies for making this happen?

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3. What are your organization’s capabilities for doing this?

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4. How will your organization know if you are making progress?

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5. What have and haven’t you accomplished so far?

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