News and Events

Small Business Loan Program Greatly Expanded

admin@accionchicago.org () — Thu, 26 Aug 2010 12:00:00 GMT

On August 25, 2010, The Chicago City Treasurer's Office announced an expansion of the Small Business Development Loan Program that will greatly enhance the capital for Chicago's small business owners. ACCION Chicago is proud to partner with the City of Chicago Office of the Treasurer to help small business owners access the financing and counseling they need to be successful even in the current economic climate. We would especially like to thank the Treasurer's Office and City Council for working with us to ensure we can provide loans at a size best fit to our entrepreneurs' needs. With the ongoing support of the Treasurer and other benefactors from across the city, we will do our part to ensure entrepreneurship can flourish in the city when it is needed most. To read the rest of the article, please click here.

CDFI Fund Awards ACCION Chicago $600,000

admin@accionchicago.org () — Mon, 23 Aug 2010 12:00:00 GMT

On Thursday August 19th the CDFI Fund awarded ACCION Chicago $600,000. Of this amount, $500,000 comes in the form of a financial assistance award which will be used to expand lending in the Chicago region. The additional $100,000 is a technical assistance award. ACCION applied for the latter in order to continue growing its presence and capacity in counties outside of Cook.

Jonathan Brereton, Chief Executive and Lending Officer for ACCION Chicago, commented, “This is the first time we have received funding from CDFI since 2000. The grant will be key to expanding our work in Chicago, providing us with additional capacity to serve more entrepreneurs than ever. While it is very affirming of our mission and the quality of our work, we are most happy for the additional small business owners we will be able to serve as a result, especially now, when communities need their businesses more than ever.”

For the complete press release, please click here. If you have questions about the award, please contact Brett Simmons at bsimmons@accionchicago.org .

Sell Your Local Products at Whole Foods!

admin@accionchicago.org () — Wed, 18 Aug 2010 12:00:00 GMT

ACCION Chicago Clients in the State of the City Address

admin@accionchicago.org () — Thu, 05 Aug 2010 12:00:00 GMT

During his State of the City address, Mayor Daley congratulated two ACCION Chicago clients on their entrepreneurial spirit. These two clients, Furtastik and Little Einstein's Daycare, received ACCION Chicago loans after meeting with an ACCION representative at the City of Chicago Department of Business Affairs and Consumer Protection Solution Station. ACCION Chicago meets with small business owners every Thursdays at the Solution Station, located at 121 S. Lasalle, Room 800. Walk-in are welcome, as are appointments at 312-744-5506.

Press Release: ACCION Chicago Client Furtastik

admin@accionchicago.org () — Thu, 05 Aug 2010 12:00:00 GMT

Dog Groomer Opens Doors - Benefits from City Program Designed to Support Chicago's Small Businesses

Efrat Stein, Department of Business Affairs & Consumer Protection 312.744.5365

View the Photo Gallery for this News Release

Commissioner Norma I, Reyes of the Department of Business Affairs and Consumer Protection (BACP) joined business owner, Guilia Ismailova in a ribbon cutting for the opening of a new Dog Grooming and Day Care business in Chicago.

Business Owner, Gulia Ismailova, obtained a small business loan through the Solution Station, a City program designed to help entrepreneurs get in business, and stay in business. The program provides business owners with free one on one counseling, free legal advice, and assistance with developing a business plan. In addition, the Solution Station provides entrepreneurs, like Gulia with direct access to lending through a micro-lender, ACCION Chicago, at no additional cost to the City.

The loan helped Gulia come one stop closer to making her dream come true of operating a Dog Grooming business. She used the money to purchase equipment that allowed her to get her business open. Gulia also took advantage of the City’s business classes to help her start the business and prepare for the inspection. On Wednesday, July 7th, she officially opened the doors to Furtastik, Grooming Daycare & More, located at 2750 N. Ashland Ave.

“What I learned is that it is so important to do all of your homework when opening a business. There are so programs that offer free resources to businesses, said Gulia. "If it were not for the Solution Station, we may not have known about ACCION Chicago and the types of smaller loans they have available for businesses that are just starting out. We also learned so much by attending the free business workshops offered by the City, “ she said.

Commissioner Norma I. Reyes commended Gulia and Robert, “you are a perfect example of what every entrepreneur should be doing, especially in this challenging economy, and that is to take advantage and utilize all of the free business resources available today,” said Commissioner Reyes.

The Small Business Solution Station is conveniently located inside the Business Assistance Center- in City Hall. The Solution Station is open Tuesday-Thursday from 9:30 am- 3:00 pm and is open to anybody interested in receiving free one on one business counseling.

Businesses that are coming to BACP for licensing or public way use permits, can now also connect with these important free resources that can help every business owner, at any stage. The Small Business Solution Station has assisted close to 300 business owners this year.

Partnering agencies include, SCORE, Counselors to America’s Small Business, that provide assistance with developing a business plan, and can give business advise. CEDLP, Community Economic Development Law Project, provides legal advise on real estate matters, corporate structuring and tax issues. ACCION Chicago provides small business mirco-loans and alternative financial assistance.

“There are significant credit needs for small businesses today, even a small loan can go a long way. Through our partnership with the City, ACCION has gained additional visibility for its services and has been able to provide financing advice and support to many businesses, said Mary Fran Riley, Vice President of Development of ACCION Chicago.

“By partnering and leveraging relationships with business organizations, we have the opportunity to strengthen our business communities - support job growth- and provide entrepreneurs with the tools they need,” said Commissioner Reyes.

Entrepreneurs should also take advantage of other free programs for small business. BACP’s offers free business classes every week, located in City Hall. Classes put business owners together with experts who can advise on topics such as marketing, employment law, how to get certified to do business with the City and how to prepare for inspections.

BACP also offers free quarterly evening business seminars called “Business Works” in neighborhoods throughout the City helping thousands of entrepreneurs connect with agencies that assist small businesses.

Information on all of BACP’s programs are available online at www.cityofchicago.org/bacp. An appointment is not required for the Small Business Solution Station, but can be made by calling 312-744-5506.

IRS Market Outreach and Education Survey

admin@accionchicago.org () — Tue, 03 Aug 2010 12:00:00 GMT

The IRS is requesting your help. If you are a small business owner, please take the time to fill out this survey.

Introduction / Background:
The IRS is trying to gain a better understanding of small business outreach and education needs and how best to fulfill those needs. Your participation in this survey will be used to develop recommendations for improved tax education and guidance for small business owners and Independent Contractors. The IRS has three specific goals for this survey:

To identify the preferred methods of receiving business information
To understand the attitudes and business practices that influence compliance
To determine the trusted and most common sources of information

Protection of Privacy:
MITRE, the company hosting this survey, assures you that your responses are anonymous. No identifying information will be captured and only summary information will be compiled. There will be no further follow-up questions to you. Your participation is greatly appreciated.

Intended Participants:
Respondents should be small business owners or independent contractors.

Important Notes:

This survey includes nineteen total questions of which a number of questions are used only to capture broad demographic data.

If you have any questions or concerns about this survey, please reference the OMB Control Number and survey contact information at the bottom of this survey.

Please try to avoid using ampersands [&] or other symbols in your text answers.

Microbusinesses Survive in Tough Times

admin@accionchicago.org (Maureen Kelleher) — Tue, 27 Jul 2010 12:00:00 GMT

ACCION Chicago is proud of our relationship with the New Communities Program . Below is an article about small business success stories in the New Communities neighborhoods.

While national economic headlines feature job losses and stock market shakeups, NCP neighborhood economics rely heavily on the smallest businesses – microbusinesses employing no more than five people. Surprising numbers of these tiny enterprises are fighting the economic tide to survive and even thrive amidst recession.

Take Vixen Beauty Lounge, a hair and makeup spa that opened on Division Street in Humboldt Park in May 2009, after a year in limbo while getting a license. Once able to open, Vixen’s personal approach and air of Hollywood 1950s glamour drew in 300 new clients in less than a year. In March, owner Vanessa Vargas was looking to hire two additional stylists.

Photo: Eric Young Smith

Owner Vanessa Vargas was looking to hire two additional stylists within a year of opening Vixen.

This success was all the sweeter for the struggle it took to get there. Originally, Vargas and her initial business partner, Melissa Sanchez, began renting the space in 2008. (Sanchez has since moved on to other ventures.) Since it previously had been a salon, they thought obtaining a license would be simple. It wasn’t.

“We were pretty naïve,” Vargas recalled. They expected to put their money into renovating the space; it actually went to attorneys’ fees through the licensing process. “Still having this space, having to pay for everything, and not being able to open -- that was hard.”

A loan from Accion Chicago, which specializes in small and startup business loans, saved the day. “If it wasn’t for Accion, I wouldn’t have been able to do it,” Vargas said. The $12,000 loan paid the balance of attorney fees and covered the renovations: “painting, putting up wallpaper, putting up stations.”

Vargas appreciates Accion’s willingness to look beyond traditional small business loan criteria and lend to brand-new enterprises. “They took a chance with us,” she said. “Without it, we really would have been stuck.”

Once her Accion loan is fully repaid – she’s already more than halfway there – Vargas would like to discuss a new loan to expand to another location. (For a sidebar profile of Vixen and Vargas, please click here.)

Capital = Jobs
Vixen’s story highlights the power of microbusinesses to generate jobs and one of the greatest challenges small business owners face – access to capital. As job creators, these tiny businesses pack an outsized wallop.

Photo: Eric Young Smith

A $12,000 loan from Accion Chicago made the dream of Vixen a reality.

According to the Association for Enterprise Opportunity, a national trade association supporting micro-enterprise, businesses with five or fewer employees account for 17 percent of jobs in Cook County.

That percentage appears to be much higher in NCP neighborhoods. Eduardo Arocho, executive director of the Division Street Business Development Association, estimates 80 to 90 percent of the businesses there employ five or fewer people.

David Beteljewski of the 18^th Street Development Corp. estimates up to two-thirds of the businesses lining Pilsen’s main commercial street would meet the microbusiness standard.

When asking NCP business development leaders about the state of microbusiness in their neighborhoods, the words “ “survive” and “tough” came up frequently. In Little Village, Enlace Chicago surveyed small business owners, asking them for their greatest accomplishment of the last five years.

“Everybody said: ‘Survival. We’re still here,’ ” observed Alejandro Guzman, Enlace’s economic development manager. “The really small businesses, five people or less, are the ones that are struggling the most right now. This last year and a half has been really tough.”

“They’re tough. These are very tough people in those businesses,” observed Pilsen’s Beteljewski. “People are just toughing it out as best they can. I know there’s been cut hours and cut days. I think they’re relying on the family unit to persevere through this.

"If your daughter is working the cash register, you don’t pay your daughter – you’re going to give her an apartment upstairs, you’re going to feed her," he adds. "That’s much more prevalent in this neighborhood than in other places. You’ve got stronger family units to absorb hardships.”

Giving Youth a Taste
Even in survival mode, these businesses often give neighborhood youth a first taste of the work world and of entrepreneurship. On the Near West Side, Delashone White, the owner and one-man operator of Gentle Wash Mobile Detail, took on nine youth employees last summer. To pin down his mobile business, he bought a canopy and put the word out to his clients where he and his interns would be.

Photo: Mike Quinlan

Delashone White, the owner and one-man operator of Gentle Wash Mobile Detail, hired nine youth employees last summer.

“I would give them hands-on training as far as detailing, chemicals to use, proper procedures,” White says. “If we had any down time, I would use interns to do community service – picking up trash, cleaning up.” He’d also take one or two with him on calls from clients outside the neighborhood.

And he’s stayed in contact with some of his interns during the past year. “One kid, he’s getting ready to go off to college this year. He was thinking about being a business owner someday himself. He could see what it takes to generate a business,” White said. (For a sidebar profile of Gentle Wash and White, please click here.)

While microbusiness success stories like this are inspiring, they can’t happen unless small-scale entrepreneurs have access to the capital they need to start and grow their ventures. The collapse of the housing market froze traditional bank lending across the board, including small-business loans. And conventional banks have never been kind to startups.

Enter Accion Chicago, which has been lending to small and startup businesses since 1994. Over time, about half of Accion’s loans have been made to businesses in NCP neighborhoods. “We have very strong referral partners” in NCP neighborhoods, said Mary Fran Riley, vice president for resource development.

Division Street’s Arocho concurs. “We’re always promoting that service,” he said. “We had them come out here in March and we’re hoping to have them come out again.”

In the last two years, Accion has made 989 loans totaling over $700,000 in NCP neighborhoods. “We fill a pretty unique niche,” said executive director Jonathan Brereton. “We’re the only lender making alternative loans at any kind of scale. This is a vital piece of the economy that has often been overlooked.”

Taking Accion for Small Businesses
But right now, small loans to small businesses are hot. Last November, the City of Chicago reallocated $3 million from the leasing of the Chicago Skyway into a loan fund for small business. Accion Chicago received $750,000 to be lent to small businesses within the Chicago city limits. By mid-January, a handful of loans had already been made from this pool of funds.

While banks put loan applicants through a yes-or-no screening process largely dependent on credit score, Accion has to work harder than that. “We have to take the time to find the people who don’t look good on paper, but we think it’s good for them, it’s good for us” to make a loan, said Brereton.

Because its mission is to support small business owners, Accion is more willing to take a risk on a borrower than a traditional bank would be. “It’s not purely about getting re-paid,” Brereton said. Its business model can handle a loan default rate of up to 10 percent over multiple years.

In 2009, its default rate was high –12 percent – but not unexpected given the state of the economy. In response it began looking more carefully at prospective borrowers’ cash flow, and its loans are doing better now. Brereton projects an 8 percent default rate for 2010, which he considers sustainable.

However, Brereton and Riley acknowledge that Accion alone can’t meet the demand for nontraditional business loans. “The city wants to create more of us,” particularly a similar entity that could make larger loans, said Riley. “There’s a need above $25,000 that’s not being met. Right now that hole is enormous.”

Deadline for UIC Entrepreneurial Student Team's Program

admin@accionchicago.org () — Tue, 22 Jun 2010 12:00:00 GMT

UIC Student Teams for Small & Mid Sized Business Fall 2010

Dear Sophia,

Do you have a project or problem that your company needs to address, but you don't have the time or resources? Are you looking for a fresh set of eyes to help your company grow or evolve? CUB's Entrepreneurial Student Teams Program (ESTP) can help. Teams of two to four business students from UIC's College of Business Administration and The Department of Kinesiology and Nutrition at the College of Applied Health Sciences (graduates or upper-level undergraduates) work closely with companies to help them solve real business issues. The challenges that the consulting teams work on are determined by the clients' needs and the skills and interests of the students.

Applications Due: Friday, July 23rd, 2010
Project Timeline: Fall Semester 2010 that starts on Monday, August 23 and ends on Friday, December 10.
Phone: (312) 996-4057
Email: Please send emails to sbdc@uic.edu
Website: For more information about our organization and our services, please visit www.uic.edu/cba/cub/

Eligibility Requirements for Participation
Business must:
- Be a for profit entity that is physically located in the State of Illinois
- Have been generating revenues for at least two consecutive years
- Minimally have at least three full-time employees
- Be able to designate one staff person to communicate and work with student teams on a weekly basis
- Submit a project that is feasible to complete within a 10 to 12-week period

About ESTP
- Teams are comprised of graduate or upper-level undergraduate students.
- Professors oversee all of the student teams' work.
- Upon completion, clients receive the agreed-upon deliverables.
- The CUB staff is available for advice and technical assistance throughout the semester.
- Project work is typically performed for about 10 to 12 weeks throughout the 16-week semester.
- There is an administrative fee to participate in the ESTP Program.

Administrative Fees to Participate in ESTP Program
- $500 for companies with gross revenues of less than $500K.
- $1,000 for companies with gross revenues of $500K to $5MM.
- $1,500 for companies with gross revenues of more than $5MM.

Program Description
Almost all companies, no matter what stage of development they are in, have some issues or projects that need to be addressed, but which often aren't because the company doesn't have the time and/or resources to do so and that is where ESTP comes in. Teams of 1 to 3 business students from UIC's College of Business Administration (graduates or upper-level undergraduates) work closely with companies to help them solve real business issues. The challenges that the consulting teams work on are determined by the clients' needs and the skills and interests of the students.

Please select ONE of the following project descriptions:

PROGRAM ONE: Marketing and Strategic Analysis
For companies who are seeking assistance from undergraduate students to work on projects that involve the following:
- Market research and market assessment
- Marketing plan development
- Strategic planning and competitive positioning
- E-commerce planning & consulting
- Exploration of business growth opportunities

PROGRAM TWO: Information Technology and e- Commerce
For companies who are particularly interested in challenges they have in the area of computer technology, business students majoring or mastering in Information Technology, will work with business owners to assist in projects like:
- Business and information systems design
- Enhancement of website capabilities
- Computer programming, data management, or data mining
- Application of technology to address supply chain and operation needs

PROGRAM THREE: Health, Fitness and Wellness Companies
- Evaluate, analyze and recommend ways for the business owners to improve marketing effectiveness or customer service
- Research, compare and generate an analytical report with recommendations to improve the consumer experience
- Analyze the prospective member tour and recommend value additions for the company to convert prospects into customers
-Investigate the effectiveness of the sales approaches; gather and analyze data; and recommend ways to improve the company's sales force effectiveness

PROGRAM FOUR: General Strategic Improvement
Students from the MBA Entrepreneurial Consulting class learn to take a broad look at companies and their business environment to identify critical leverage points for profitability and success. They use their knowledge and business experience to develop cross-functional alternatives for your consideration. Having an MBA student team perform a system-based analysis of your operations and strategies will allow you to clearly identify an opportunity or a project you can either execute yourself or submit to another student team in future semesters, such as marketing, information technology, operations or a finance project.

PROGRAM FIVE: Branding
For companies who desire a new branding campaign, students will work with logo design, slogans, print ads and press releases as well as product positioning based upon market research.

PROGRAM SIX: Business Plan Development
For businesses who are seeking to formulate a business plan. Students will provide the client with a comprehensive business plan and will work hand-in- hand with the client to conduct market research and create financial projections.

PROGRAM SEVEN: Financial Management
For small and mid size companies seeking a corporate finance project including:
- Financial forecasting
- Ratio and spreadsheet analysis
- Lease vs. Buy options
- Working capital management
- Business value & time value of money
- Valuation/Acquisition
- Exit strategy
- Reorganization and bankruptcy

PROGRAM EIGHT: On- campus Integrative Marketing Campaign
For companies who are interested in reaching the diverse collegiate target market. This campaign requires an engaged partner who is willing to provide some financial assistance so students can do an actual marketing event on campus. Students will:
- Conduct pre and post market research
- Create and distribute press releases
- Create advertisements
- Perform branding and multiple media publicity e.g. YouTube videos, event marketing, etc.

PROGRAM NINE: Projects with an Asian Perspective
The MBA Entrepreneurial Consulting class includes many students who already have successful experience and connections with companies in China, Korea, Taiwan and Thailand. This gives them a unique ability to help companies attempting to create or improve Asian aspects to their business, whether new markets, new suppliers or new partners.

APPLY HERE!
To apply for Entrepreneurial Student Teams Program, please complete the two online forms: "ESTP Application" and " Request for Counseling Form " to submit your project. Applications missing either one of these online forms will not be considered for the program.

ESTP Projects Descriptions (Download and read)
ESTP Application (Complete and submit)
ESTP New Client SignUp Form (Complete and submit)

If your computer does not have the updated version of Adobe Acrobat Reader, please click on the link below to download the most recent version of the free software so you can type your responses into the fields of the PDF files.
www.adobe.com/products/acrobat/readstep2.html

About the UIC - Center for Urban Business
In 1993, the Center for Urban Business (CUB) was established as a business assistance center for emerging and high-growth entrepreneurs. CUB is a 501c(3) non-profit organization at the University of Illinois at Chicago (UIC) and is an Illinois Small Business Development Center (SBDC) and is one of the delegate agencies for the City of Chicago. The Center is partially funded by the UIC College of Business Administration (CBA) in partnership with the U.S. Small Business Administration (SBA), the Illinois Department of Commerce and Economic Opportunity (DCEO) and the City of Chicago's Department of Planning and Development and is part of the Illinois Entrepreneurship Network (IEN).

CUB Sponsors:

UIC Center for Urban Business

Illinois Small Business Development Center

email: sbdc@uic.edu

phone: (312) 996-4057

web: http://www.uic.edu/cba/cub

ACCION Chicago Honors Our Top Referral Partners

admin@accionchicago.org () — Mon, 21 Jun 2010 12:00:00 GMT

On June 18, 2010 ACCION Chicago honored our top referral partners with a lunch reception at Mundial Cocina Mestiza. A special thanks to Steve Hall from Charter One Bank and Kip Read from American Chartered Bank for sponsoring this event. In 2009, our 13 top referral partners referred over 80 loan applications to ACCION Chicago. We are grateful to them for their continued support and advocacy.

2009 Micro-Entrepreneur Advocates

Adrienne Baker, Chase Bank

Gregg Baker, Charter One Bank

Jan Bauer, College of Lake County SBDC

Hussain Bhanpuri, Chicago Community Ventures

Ken Crite, Kankakee Community College SBDC

Alex Felton, Charter One Bank

Erica King, US Bank

Ivette Nouti, PNC Bank

Harriet Parker, Waubonsee Community College SBDC

Robert Rakstang, Centerpoint at Governors State University

Denise Spinell, Charter One Bank

Brian Stinton, SCORE Chicago

Roxane West, Chase Bank

For pictures from the luncheon, visit ACCION Chicago's Flickr page .

Read ACCION Chicago's Impact Study Online!

admin@accionchicago.org () — Wed, 16 Jun 2010 12:00:00 GMT

Our impact study is online. Here are some highlights:

Over 50% of respondents recorded a 100% or greater increase in business income since receiving their loan
83% of clients with businesses less than 2 years old at funding are still operating, compared with a national average of 70% in a good economy
Our businesses have created or maintained an average of 2.6 jobs each

You can read the entire impact study for more information on the effect ACCION Chicago has on small businesses.