Franz is a self-employed truck driver who was referred by a friend. He drives locally, picking up and delivering empty boxes to leave at train stations.
Franz came to ACCION USA for a loan after he incurred an extra household expenses due to his wife's premature labor. This caused a shock to their household financials. He needs a loan to cover some repairs on his truck, which is a 1982 model and needs to be repaired frequently.
Franz and his family depend upon his business entirely and this loan will impact his business tremendously.
About U.S. Microfinance and ACCION USA:
Have you ever thought about how the cute new café on your corner or the salon you frequent every month got the financial resources to start their business? Chances are, they drummed up support from their friends and family, dipped into their personal savings, used a high-interest credit card, or all of the above. An estimated ten million small businesses in the U.S. face difficulty obtaining loans from traditional banks, even prior to the current “credit crisis”. Microfinance institutions, like ACCION USA, support these “unbanked” small businesses by giving them access to fairly-priced capital and business education.
Small businesses also help stabilize low- to moderate-income neighborhoods and rebuild our economy through income growth and job creation. Self-employment provides workers with a way to increase their incomes, support their families, and strengthen their communities. As unemployment rises in the U.S., more and more people are turning to self-employment and start-up enterprises as a way to take control of their economic futures and provide employment opportunities in their communities. The need for support of small businesses in the U.S. is great, and it is one that ACCION USA has been striving to meet since 1991.