| Greetings! Spring is here and with it a renewed sense of optimism and purpose about our collective efforts to lead the economic recovery. So, for our Spring issue, we're focusing on growth and "green" - together, we can turn the cold, hard winter into opportunities for renewal, change, and meaningful relationships with our clients and stakeholders.
Thanks again for stopping by.
Jason Friedman, Publisher, All Things Microenterprise Development |
| Green Microenterprise Development in Action! |
 There are significant opportunities for nonprofits to play a role in creating green collar jobs and businesses. Historically focused on generating social and economic returns on their investments, many CDFIs and MDOs are now looking at the integration of community development concerns - economic development and poverty alleviation - with a third focus on environmental issues.
Below are some examples of our clients and peers that are leading the field to build sustainable local economies:
Green Business Financing
- Georgia Green Loans, administered by Appalachian Community Enterprises, Inc. (ACE) in Cleveland, GA offers loans to start or expand an eco-friendly product or service or "green" an existing business. Examples include organic farming, specialty food production or value-added products, new conservation products and/or services and updates of existing buildings and business processes.
- Through its Energy Efficient Enterprises Project, MACED in Berea, KY provides loans to improve energy efficiency in small and midsize enterprises to keep utility costs low and to reduce pollution emissions. Staff provide high quality energy assessments that result in actionable recommendations and assist with choosing vendors and types of equipment for upgrades and installations.
- The Initiative Foundation in Little Falls, MN offers The Green Business Loan Fund to target entrepreneurs in recycling, renewable energy, waste transformation and emerging technology that reduce negative impacts on the environment. The fund provides $50,000 to $250,000 and targets businesses that meet triple bottom line investment criteria.
Green Business Training and Technical Assistance
- In San Francisco, Urban Solutions' Green Business Initiative offers: (1) on-site assessments to assess areas involving water, waste, energy, and chemicals. Consultants review operational practices to discover additional cost and resource reduction opportunities; (2) a customized report of findings, recommendations, and money-saving opportunities and help with implementation; and (3) workshops like "Green Financing for Your Business." Check out the Green Office Footprint Quiz.
-
The Umpqua Community Development Corporation, in Coos Bay, Oregon created Heartwood ReSources, an affiliate business that provides deconstruction services, added-value, wholesale & retail sales of reclaimed building materials. The program provides job skills training to TANF recipients to create new jobs. The CDC also offers zero-interest, $25,000 loans for home repairs and upgrades.
-
AnewAmerica, also in S.F., offers the Green Business Certificate Program to enable and encourage entrepreneurs to adopt green, sustainable business practices. Entrepreneurs reach green business certification levels by greening their operations or offering a green good or service. All AnewAmerica certified green business owners must have an active social responsibility plan.
-
The Latino Economic Development Corporation (LEDC) in Washington, D.C. developed a "Greening Your Garbage" workshop to show businesses how to improve and implement waste, recycling and composting programs. Particpants hear from entrepreneurs who are composting their waste and are introduced to local suppliers of environmentally friendly products. Staff also developed a "Green Cleaning" course for owners of cleaning companies to explain the advantages of "green cleaning," recommend products, analyze the demand for these services in the D.C. area, teach how to market the benefits of green cleaning, and connect to distributors and wholesalers who sell these products.
We believe that from an institutional perspective, developing expertise in green business development can lead to: increased visibility, new strategic alliances, new funding; and increased sustainability. Want more? See our recent presentation on Green Businesses at the NCRC conference. |
| Microloans: Up or Down? |
We are working with microlenders that have experienced decreased demand (and/or approval) for loans. Aspiring entrepreneurs are reluctant to take on debt; some applicants with high credit scores are financially unstable due to the economy. What's the solution? The CDFI Fund and SBA have increased funding for loan capital. WIll there be adequate deal flow to take advantage of this opportunity? Here are some questions you should ask yourself:
- How can we reach profitable businesses now unable to access traditional lending? Reexamine your public relations plan. Work with the local government and media to publicize your funds availability. Remind the local bankers that they can refer business to you, but be clear about requirements.
- Can we partner with other organizations in order to leverage resources and increase efficiency? For instance, can we combine our underwriting or lending operations with another group? See the article below on the Microloan Management Services (MMS) offered by ACCION Texas.
- Are we reacting to the decrease in qualified borrowers by loosening lending guidelines? Are our loans solving a problem or merely postponing the inevitable? Are there industries that we should avoid or approach more cautiously?
- Are there industries that we expect will continue to do well? It's probable that they are having trouble accessing credit. How can we reach those borrowers?
- What opportunities will be afforded local Minority and Women Owned Businesses and Green Businesses through the fiscal stimulus package?
How can we reach them? Should we consider different loan structures for them?
Give me a call at (319) 248-3576 and we can discuss what you are experiencing and how we can review your process to build your pipeline and strengthen your underwriting criteria and loan processing. |
| Use the Power of Technology to Scale Up Microloans! |
|
As Amelia pointed out above, in addressing this uncertain environment for micrloans, one option to consider is reducing costs of underwriting and portfolio management through partnering with another organization.
We'd like to introduce you to ACCION Texas, the nation's largest microlender, and its Microloan Management Services (MMS). MMS is designed for microlenders and CDFIs who are pursuing aggressive growth and need to reduce time, effort, and risk. This integrated loan management system provides:
1. Internet/online applications on your website
2. Prequalification - Credit Scoring Engine
3. Underwriting
4. Document preparation
5. Portfolio management: Monthly statements, payments and collections.
With MMS, you can complete applications using their web based system and receive a preliminary evaluation of the loan available to loan officers immediately after an application is submitted. This allows you to expedite the loan decision process and focus on the customers and their businesses. There is no need to prepare closing documents, just request them, print and get the required signatures. MMS offers dedicated and highly experienced staff in every aspect of loan application and management from intake to payoff.
As ACCION Texas CFO Gustavo F. Lasala, explains, "the system gives loan officers vital back office support at their fingertips. This will free-up time to attract more applicants, screen them better, and build much-needed relationships with your clients."
ACCION Texas now provides MMS services to 6 organizations with lending activity in 7 states. In its first year, MMS processed close to 1,500 applications and its back-room operation reached $1 million and 56 loans under management.
We feel so strongly about the potential for MMS to help scale up the microloan industry that we are working with them to identify potential partners. If you would like more information about MMS, contact me at 319-341-3556 or jason@friedmanassociates.net |
| Engaging Your Board is Key to Effective Fundraising |
|
We've been talking a lot lately about the opportunities the economic crisis provides for your organization in media attention and fundraising.
The same opportunities apply to Board development. Your Board can and should play a critical role in representing your organization's mission and programs to the larger community and prospective funders. Never assume your Board members are able to articulate your organization's mission and programs without a little coaching from time to time.
- Engage your current Board members with a "Fact Sheet" to use when representing your organization to the community: Like you, Board members are participating in conversations about the economic crisis. Arm them with a simple "fact sheet" to boost their confidence in "talking up" your organization and their leadership role. It is well worth 5-10 minutes at your next Board meeting to distribute and discuss.
- How to prepare your "Fact Sheet": In the last newsletter, we talked about updating your case statement to tie your organization's mission and programs to the current headlines. Once you have updated your "case" boil it down to one page (at most) with the critical facts that support your case. Here is a great example of a Fact Sheet from one of our clients designed for both staff and Board members. When putting your fact sheet together, make sure to:
- Avoid the use of industry "jargon." We often use terms that are familiar to us, but not to others outside the organization.
- Include examples of measurable impact to illustrate your point quickly.
- Test your fact sheet on staff, Board, and people outside the industry to ensure they are clear and understandable.
Great time for Board recruitment: While your mission and programs are being elevated to the headlines, there is a great opportunity to attract high profile Board members who can focus their time, talents and resources to find solutions to the economic crisis. Use your updated case statement to approach prospective Board members. If your Board has not done a recent needs assessment, here is a simple tool to make sure you are targeting the talents and resources your organization really needs.
Want more? Check out our webinar, Fundraising in '09? "Yes, You CAN!" on April 16th from 3:00-4:30 pm EDT. For more information, click here. |
| Riding the Media Wave! Build Awareness of the Cause Through Media Coverage |
 Since our last newsletter, we've seen headlines across the country of how organizations like yours are responding to the economic crisis. The window of opportunity is now for you to make the connection between your mission and programs and the front page - and be seen as part of the solution.
In the last issue, we gave you some ideas to help you get into the dialogue in your community about the economy.
Get a great story published in the newspaper? Have a story run on the local news? Then what? That's just the beginning! News coverage begets more news coverage - but only if you can best leverage the attention that follows.
Once you have a press list and have talked to some of your local reporters, try the following steps to increase the "bounce" from stories that appear in print, on television, on the radio or online:
- Distribute the news to your e-mail list. Once you have a story in print, on television, on the radio - or even on a blog or other website, let everyone know! Click here to see how one of our clients, Justine Petersen, posted news coverage on their website to get additional attention. They also sent an e-mail to their entire list of supporters, board members, reporters and clients. This is an excellent way to maximize the coverage and position yourself as an expert in your field and in your community. And don't forget to put it on your website. Check out this example from a microenterprise organization. And this one.
- Write a follow-up letter to the editor. As discussed in our last newsletter, letters to the editor are a great way to get noticed and they are often written in response to a newspaper story. Write a letter referencing the story and expand or discuss some of the information that the reporter used. Is there someone on your board who could send the letter? A client who has used your services? Think about who might be a good "validator" to talk about your great work.
If you would like to talk to us about how Friedman Associates can help you meet your communications and public relations goals, please call us for a free consultation. |
|
|
|
|
| Microfinance Expert Joins Friedman Associates! |
|
Say hello to Amelia Lobo!
Amelia is one of the nation's premier microfinance specialists. For the past five years, Amelia was the Senior Underwriter at Accion New York, Inc., one of the nation's largest microlenders.
As Senior Underwriter, she managed loan production, created and revised product guidelines, conducted portfolio and industry analysis, and trained loan officers and underwriters.
Through her leadership, Accion realized significant growth in its loan portfolio.
In "Microloans: Up or Down?" Amelia offers some advice on how to regroup if you are seeing diminished demand.
Welcome Amelia! |
|
NEW! Fundraising Webinar for MDOs & CDFIs! |
 |
Title: Fundraising in '09? "Yes, You CAN!"
Date: Thursday, April 16, 2008
Time: 3:00-4:30 pm EDT
Fee: $75.00
Registration include a free 30 minute post-webinar fundraising consultation from host and fundraising guru Melanie Friedman!
Take steps now to protect your current funding and position yourself to be seen by funders as key to the economic recovery.
In this webinar, learn how to: tie the headlines to your case for support; position your organization to compete; strategically focus and maximize your fundraising efforts and resources -- and more!
For registration information, visit our website or click here or call us at 319-341-3556. |
| Friedman Associates Presents at NCRC Conference |
 |
Hats off to CEO John Taylor (pictured above with our team) and his staff at the National Community Reinvestment Coalition (NCRC) for a terrific conference in DC.
Friedman Associates conducted three workshops at the conference on green business, fundraising and media relations. To get our stuff, click here. On March 13, John, and more than 350 members of NCRC, joined Rep. Eddie Bernice Johnson (D-TX) on Capitol Hill to introduce the CRA Modernization Act of 2009.
The legislation includes strong accountability measures for a broader set of financial institutions than previously covered, including enhanced public hearings, expanded data reporting requirements and the creation, for the first time, of a national foreclosure and loan modification data collection system. |
| See You at the
AEO Summit on Entrepreneurship! |
 |
Our entire team will be presenting at the upcoming AEO Summit on Entrepreneurship May 17-19 in Arlington, VA.
AEO is the national leadership organization and the voice of microenterprise development. As a former Board and staff member, I can tell you it is the place to be to learn about successful strategies in the field today. Don't miss it!
Friedman Associates will be conducting four workshops at the Summit and a full day workshop on Social Media Tools for MDOs. |
Let's Talk!
|
 |
Friedman Associates can assist you to strengthen your training and loan programs, develop a strategic plan and create capacity in communications and fund development.
We work closely with staff at all levels of your organization to ensure that you have the tools and skills necessary to maintain and adapt your goals and objectives.
Call us for a free consultation at319.341.3556. | |
|
