Despite the name, ACCION Texas also serves Louisiana and is about to set up shop in parts of Mississippi, Alabama, Arkansas, Missouri and Tennessee, said Janie Barrera, its president and CEO.
And while microloans -- defined by the SBA as any amount up to $50,000 -- are still the organization's bread and butter, the lender has merged with other nonprofits so that it can lend up to a quarter of a million dollars to borrowers with good credit.
The average credit score of one of ACCION Texas' customers is 575, said Barrera. ''The cutoff at banks is 680.'' Yet the organization has a 92% repayment rate.
In 2008, the lender disbursed 912 loans.
ACCION Texas also boasts the largest outstanding portfolio of any U.S. microlender with nearly $30 million in the hands of borrowers.
For entrepreneurs in the McAllen, Texas, area, the organization is launching an incubator. ''Small business owners can come in and work out of the space for 18 to 24 months in exchange for agreeing to turn in their financials every week,'' explained Barrera. ''Many small businesses get in trouble because they don't know how much they spend; and that's why they come to us, because their financials are a mess, and banks won't look at you if your financials aren't in order.''
Businesses get legal, marketing, and other advice, so that they can qualify for traditional financing by the time they ''graduate.''
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