Why are you interested in becoming a Trustee?
As an Asset Building Organization and within our Business Development Program is priority to support our clients to find resources to be able to launch their businesses. Aside from being Loan packaging one of the services that we provide we are always looking for sources of funding for our clients. Also, with the new lending policies, options for start up business are limited or unavailable we are always looking for more flexible financing options for this new business.
What is the mission of your organization?
To achieve economic justice for San Francisco’s low- to moderate-income Latino families through asset development.
What indicators/metrics do you use to evaluate and monitor your impact?
We focus on the number of clients we serve, and the number of jobs that we create through the businesses we support.
How have you performed in the past, according to these indicators/metrics?
MEDA has been supporting micro-entrepreneurs successfully since 1973. Our partnership with Kiva Zip is one of the ways that we are looking to expand our impact in 2012 and beyond.
How will you determine whether or not the business plans of the Borrower(s) you endorse are sound?
Part of the Loan packaging process provides the necessary financial technical assistance to make sure the financial information prepare for the application is done appropriately. We help our clients prepare and we review the financial projections and the marketing strategy to assure the projections are reasonable assumptions likely to happen with implementation of feasible marketing strategy. Clients that we endorse have to participate in the Financial Coaching Program. For this we run their credit report, were we will be able to assess amount of debt and the financial risk of lending to every client. We want to make sure that whoever receives the resources will be capable to pay, so keep the options open to other clients.
How will you know whether the Borrower(s) you endorse will have the character to repay a loan?
The clients from the Business Development Program have been with us at least during the time he/she has been doing their business plan, other started with the business plan and continue coming for different services over time. During this time which can go from a minimum of a month and in many cases years. We are able to get to know our clients and build a pretty tight relationship with them. They trust our expertise and come to us for a variety of issues whenever they feel they need help with their business.
Please describe what type of business, financial, technical or other support you plan on providing to the Borrower(s) you endorse:
The Business Development Program is integrated in two pieces. An Education Part which is made up of 6 session that talk about (Business Planning, Marketing, Finances, Legal aspects and operations and Personal Finances). Participants attend the workshops and at the same time work on a one on one bases with a coach to structure and develop their business plan. The number of coaching session can vary depending on clients' need for technical assistance and time availability to work. The coaching session aside from helping them to put together their Business Plan, can also be gear to risk management issues in topics like bookkeeping, marketing, legal, personal or business finances and others. Additional to these work, we refer our clients to different organizations in the community for resources than can provide additional support to our clients.
How will you establish whether the Borrower(s) you endorse are in debt, or have a history of debt? How will what you find affect your endorsement of their loan application?
All participantes will be require to be enrolled in the financial coaching program. Within this program we run their credit score, work out a budget to assure pay back and itemize expenses including loan pay back.
Why can't the Borrower(s) you endorse access traditional loans?
Many of our clients lack one or several of the bank's requirements to get a loan: Credit Score, not enough collateral, relatively new or new business.
Please describe how you could help us to ensure that the loans you endorse on Kiva Zip have a significant and positive social impact:
Most of our clients are not just low but also very low income, because of this we are aware that they need a variety of personal and business assitance to assure that the services deliver have actual impact in their lives. Our working model seeks to ensure that our clients preserve their assets and grow them. We try to leverage the services that we provide and all the services available in the community so they benefit with the most services available. The technical assistance provided to our micro business owners tries to assure that their businesses are sustainable in the long run, so they can be source of employment to other members in the community.