Accion's unique lending methodology is strongly character-based. We don't make loans based on revenue, collateral, or credit alone, but also rely on the client's commitment to the business, as well as references from suppliers and customers.
Loans range from $300 to $75,000. Each loan is underwritten on a case-by-case basis, with collateral and co-borrower required depending on the level of risk.
Accion uses a "stepped lending" model, in which clients are given relatively small, first-time loans. Monthly payments must be made on half the term of the loan or for a minimum of six months in order to become eligible for larger loans. As Accion builds a working relationship with each client, subsequent loans are usually approved quickly and good credit history is established.
Credit challenges, lack of a business plan or a young business are issues that many of our current clients face and these will not necessarily prevent potential borrowers from qualifying for a loan with Accion. We evaluate each potential client individually and offer referrals to counseling and credit assistance as well.
Read our Frequently Asked Questions for loans.
The following criteria are what we look for in a potential client:
- Live/work in Imperial, Riverside, San Bernardino or San Diego counties
- Must be at least 18 years of age and demonstrate good character
- Must show the capacity to repay the loan
- Use the proceeds of the loan for your business
- Disclose all aspects of business activities
- Collateral and a co-borrower may be required
- Business must be a legal activity
- No tax liens or judgments
- No bankruptcy in the past year
- Must have documented business income
*Note – Credit issues from the past will not necessarily prevent you from qualifying for a loan.
Accion's small business loans are available for financing your business needs. First loans are usually termed between 3 and 84 months. With Accion's stepped-lending model, clients can apply for larger loans after six months of positive repayment and demonstrated business growth.
Accion works with our clients to help facilitate easy repayment of their loans. Payment amounts and loan terms are based on the client’s capacity to repay. In addition, Accion San Diego offers a debit account program that allows clients to set up direct payments from their bank accounts to Accion so that they can avoid late payments and late fees. If you are a current Accion client and you are interested in enrolling in this program, please download and return the following form via fax (619) 795-7260. Debit Transfer Form: ACH Debits.
Accion's interest rate ranges from 10% to 18% and is a function of the borrower’s credit on first time loans. Borrowers will qualify for a reduced interest rate on subsequent loans based on the following criteria:
- All payments must be made within 5 days of the due date with one exception: One payment per 12-month period may be made later than 5 days after the due date.
- Monthly payments must be made on half of the term of the loan or for a minimum of 6 months dependent upon the initial loan size.
- No payments more than 30 days late.
- No bounced checks.
Collateral & Co-borrowers
Collateral and/or co-borrowers may be required depending on the borrower and the loan amount. Each case is evaluated on an individual basis to determine requirements.
Collateral can include business/manufacturing equipment, inventory, automobiles and receivables, but does not include real estate. Collateral must be owned free and clear by the borrower.
Co-borrowers must be willing to guarantee the loan and provide primary support and back-up if and when the borrower cannot meet the loan obligation. Co-borrowers must live in the appropriate county, have a stable source of income and have enough discretionary income to cover loan payments in the event of delinquency or default.
(calculated on loan proceeds, net of the fees)
|Up to $999
||5% of loan amount
|$5,001 or more
||4% of loan amount
|$10,000 or more
||4% of the loan amount plus 2% for loan loss reserve if applicable
|Schedule Of Charges
|Interest rates range from 10 to 18 percent.
|Other Potential Fees
|UCC-1 Filing Fee (for collateral):
|DMV Filing Fee per vehicle (for collateral):
|Returned Check Fee:
|For loans under $5,000
|$10 if the payment is not received within 10 days of the due date
|For loans over $5,000
|10% of the payment due, if the payment is not received within 5 days of the due date