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Accion East and Online - Kips Bay

$5, $10, or $25 Donation to Help Hurricane-Impacted Businesses

The Fine Print

Questions and Answers 4 questions

Commonly Asked Questions

Q:

Is this money that would be donated to a specific cause or is it a "loan" whereby the receipient has to repay with a percentage of some sort?

joann  asked on  Nov 1, 2012

A:

With your donation, Accion East will make loans to small businesses affected by Hurricane Sandy in New York, New Jersey and Connecticut. 100% of your donation will go towards performing community outreach, disbursing capital, and counseling microloan borrowers who are struggling to repay their microloans as a result of financial and personal hardships brought on by the hurricane. The interest rate on our loans range from 8.99% to 15.99%, with the average being 12%. All our borrowers are individuals who could not otherwise access traditional funding from a bank or other lending institution and often come to us in lieu of getting charged 24.99% for cash advances on their credit cards. Terms range from nine (9) to sixty (60) months.

Alejandra B.  from  Merchant  replied on  Nov 1, 2012

More Questions and Answers

Q:

Is this money that would be donated to a specific cause or is it a "loan" whereby the receipient has to repay with a percentage of some sort?

joann  asked on  Nov 1, 2012

A:

With your donation, Accion East will make loans to small businesses affected by Hurricane Sandy in New York, New Jersey and Connecticut. 100% of your donation will go towards performing community outreach, disbursing capital, and counseling microloan borrowers who are struggling to repay their microloans as a result of financial and personal hardships brought on by the hurricane. The interest rate on our loans range from 8.99% to 15.99%, with the average being 12%. All our borrowers are individuals who could not otherwise access traditional funding from a bank or other lending institution and often come to us in lieu of getting charged 24.99% for cash advances on their credit cards. Terms range from nine (9) to sixty (60) months.

Alejandra B.  from  Merchant  replied on  Nov 1, 2012

Q:

Are these microloans seriously expected to be paid back?? I'm sickened to see Groupon and Accion soliciting donations for local businesses impacted by Sandy (at first glance a generous proposition) with the expectation that these businesses will then be saddled with additional debt, payable to Accion (and Groupon indirectly, I assume). Consumers should spend their philanthropic dollars on actual charities. This is unbelievable. Please respond and give me a reason not to cancel my Groupon membership today and spread the word about this ghouilsh "deal. "

Abigail C.  asked on  Nov 1, 2012

A:

As a 501(c)3 organization, Accion East has a charitable mission of empowering low- to moderate-income business owners through access to capital and financial education. We work with those who have been turned down or cannot access loans from traditional lenders. These borrowers often need small loans, which are inherently unprofitable to administer but all that borrowers can afford to repay. In addition, these borrowers need a lot of one-on-one support that is time intensive, and again, not provided by the private sector. Outside of the federal programs (e.g., FEMA), personal savings and/or friends and family, entrepreneurs do not have sources for capital that can help them quickly get on their feet. Finally, by providing credit, we open up the opportunity for financial inclusion. Your support will go entirely to Accion’s outreach effort and core mission of providing needed capital in a quick fashion but with the one-on-one education required to make sure we open up promising credit futures.

Alejandra B.  from  Merchant  replied on  Nov 1, 2012

Q:

Is there a financial statement for Accion East with regards to salaries paid to execs or employees and per centage of donation that is available after Accion expenses to loan applicants. What are some of the details of the loans made i.e. interest rate, terms of loan etc.

Arthur A.  asked on  Nov 1, 2012

A:

Yes, Accion East shares its audited financial statements on its website (www.accionusa.org). You will see that in general, over 81 cents on the dollar goes directly to our programs. The interest rate on our loans range from 8.99% to 15.99%, with the average being 12%. All our borrowers are individuals who could not otherwise access traditional funding from a bank or other lending institution and often come to us in lieu of getting charged 24.99% for cash advances on their credit cards. Terms range from nine (9) to sixty (60) months.

Alejandra B.  from  Merchant  replied on  Nov 1, 2012

Q:

Is this a loan to a small business that they would have to pay back, or is it simply money to help a small business get back on their feet?

Mary B.  asked on  Nov 1, 2012

A:

With your donation, Accion East will make loans to small businesses affected by Hurricane Sandy in New York, New Jersey and Connecticut. 100% of your donation will go towards performing community outreach, disbursing capital, and counseling microloan borrowers who are struggling to repay their microloans as a result of financial and personal hardships brought on by the hurricane.

Alejandra B.  from  Merchant  replied on  Nov 1, 2012

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