Accion Opportunity Fund Overview
Accion Opportunity Fund is a nonprofit organization that provides loans to small business owners. It focuses on women, minorities, immigrants, and low-income individuals. Its loans range from $500 to $150,000, with a requirement of 575+ credit scores and a 25.99% APR. Operating for over 25 years, the organization aims to advance social equality in lending by supporting small businesses and offering mentoring and educational resources.
Loan Process and Requirements
Accion Opportunity Fund provides loans over 12 months to 5 years to underserved entrepreneurs, with 96% of borrowers having surviving businesses. Most loans require a 575+ credit score, and all past debts and bankruptcies are considered. While the nonprofit provides unprecedented capital access, it faces criticisms related to a high APR of 25.99% and occasional allegations of fraud and mismanagement.
Fees Charged to Borrowers
Accion charges fees that add to loan costs, such as a $135 processing fee and 4-5% of the total for closing costs. With loans ranging from $5,000 to $100,000, the organization focuses on providing business coaching and educational resources to small business owners. Despite the fee structure, Accion has maintained a positive reputation and high satisfaction among its employees.