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Economic and Community Impact of ACCION Texas 1994-2008

Executive Summary

Established in 1994, ACCION Texas provides entrepreneurs across the state access to credit and business support services not available from the commercial banking sector. Based in San Antonio, ACCION Texas has 13 satellite offices in the cities of Austin, Arlington, Brownsville, Corpus Christi, Dallas-Fort Worth, El Paso, Houston, Laredo, and McAllen.

ACCION Texas Loans by Year (1994 – 2008)

ACCION Texas Loans by Year 1994-2006

ACCION has disbursed $76.8 million in loans and served over 6,300 clients since 1994. The average loan increased over the same period from $3,000 to over $8,000. In the last three years (2006-2008), ACCION Texas has disbursed nearly $36 million, representing nearly half of all loans disbursed since 1994. ACCION currently has over 1,850 active clients and disbursed over $14.3 million in loans in 2008.

Economic Impacts

The economic impacts of ACCION Texas lending are far-reaching and dynamic, as the provision of millions in working capital touches the economy in a number of ways. Using input-output analysis of new economic activity, ACCION Texas’ commitment of $78.6 million in lending capital between 1994 and 2008 has created economic activity of approximately $142.6 million, including earnings (payroll) of $45.3 million, state and local tax revenue of $8.3 million, and 1,802 new jobs. Taken together, the $45.3 million in total annual earnings yielded from the aggregate investment of $78.6 million is equivalent to a 60 percent social return on investment- every dollar invested brings back 60 cents annually in earnings to small business owners. Seen in this light, ACCION Texas lending represents a huge “dividend” to the individuals and communities who participate.

Table 1: Summary - ACCION Texas Economic & Tax Revenue Impact

Economic Impact of ACCION Texas, 1994-2008
ACCION Texas Loans, 1994-2008	$76.8 million
Total Economic Activity	$142.6 million
Including Earnings	$45.3 million
State and local tax revenue	$8.3 million
New Jobs	1,802
THESE RESULTS REPRESENT A 60 PERCENT SOCIAL RETURN ON INVESTMENT.

Table 2: Summary - ACCION Texas Economic & Tax Revenue Impact

	Direct Lending	Total Economic Activity	Total New Earnings	Total New Jobs	Est. Public Sector Revenue
Austin MSA	$4,073,772	$7,564,995	$2,403,525	96	$444,041
Corpus Christi MSA	$3,322,208	$6,169,340	$1,960,103	78	$362,121
Dallas-Ft. Worth MSA	$12,052,198	$22,380,932	$7,110,797	283	$1,313,690
El Paso MSA	$9,009,716	$16,731,043	$5,315,732	211	$982,059
Houston MSA	$11,982,012	$22,250,596	$7,069,387	281	$1,206,039
Laredo/Del Rio Region	$1,216,093	$2,258,285	$717,495	29	$132,554
Rio Grande Valley	$11,083,728	$20,582,483	$6,539,400	260	$1,208,126
San Antonio MSA	$21,905,527	$40,678,564	$12,924,261	514	$2,387,702
Rest of Texas	$2,128,462	$3,952,554	$1,255,793	50	$232,002
Total	$76,773,716	$142,568,792	$45,296,493	1,802	$8,268,334

ACCION Texas is dedicated to promoting long-term income and employment opportunities by providing credit and other support services to startup businesses and low-to-moderate-income small business entrepreneurs who are unable to obtain credit through traditional channels. By any reasonable account, microlending is a smart social strategy. ACCION loans create jobs, promote income stability, improve clients’ credit scores, help clients become bankable and generate public revenues. Microlending provides a valuable alternative to those left behind by factory closings, corporate downsizing, and natural disasters and ultimately can create jobs and a return on investment that extends well beyond the recipient of the initial loan.

A loan from ACCION Texas ripples across families, communities, and even generations. The new and growing businesses help stabilize family income and promote savings and investment leading to long-term economic stability, home ownership, and more civic involvement. Our clients’ children benefit from seeing how business works at an early age and are more likely to pursue higher education as family income grows.