Mercy Corps Northwest

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Mercy Corps Northwest
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Quick background

• Mercy Corps Northwest (est. 1998) is the regional
  economic development organization of Mercy Corps.
• Promotes self-sufficiency through microenterprise
  development and self-employment in Oregon and now
  Washington.
• Portland based loan program started in 2001 and
  expanded into WA state in 2009.

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Expansion to Washington

• Loan program already serving Clark County
• Research with Willamette U. group (need/fill
  service gaps).
• Opportunity to respond to economic conditions
  (broaden reach - online services).
• Strategic collaboration with WA CASH (leverage
  resources).

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Expansion to Washington continued

• Change in WA self-employment rate from 2000-2007
• 15 of 39 counties shrunk from -0.5 to -19.0
  compared to the national rate change of 20
  (NWAF)
• Increase in size/scale reduces cost per client
  which allows us to assist more individuals.
• 3,201in 2006 to 2,036 in 2008 (MicroTest)
• Were getting better at providing successful
  loans
• lower loan loss rates i.e. 14.4 in 2006 to 5 in
  2008 (MicroTest)
• lower PAR (loans gt30 days past due) from 44 in
  2006 to 16 in 2009 (MicroTest)
• Organizations involved WA CASH (joint
  participation), StartZone, WSU EED.

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Loan Program

• Serving low-income clients lacking access to
  capital throughout WA (mobile lending).
• 74 of MCNW clients are below 100 (HHS) at
  intake (MicroTest)
• Online application Co-branding for partners
  Leverage existing resources in the area (SBDC
  network).
• WA CASH, StartZone, and WSU EED.

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Loan Program (cont.)

• Loan capital and funding sources (federal, state,
  local, foundations, individuals).
• Partners and their resources are key to success
  (example Grant County team - Latino pilot
  project).
• Understand our criteria Inform intermediaries
  and entrepreneurs in your community Contact me!

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MicroMentor

• Web-based service connecting entrepreneurs with
  skilled business volunteers (ASPEN creation).
• Increases access to industry-specific and
  technical expertise via mentoring.
• Expand client services or scale existing
  mentoring services.

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Progress

• Loans
• Since 2001, 191 loans totaling 2 million, 6.6
  default rate.
• Since WA expansion, 8 loans totaling 54K
  (Trucking loan example Earned It, Working on
  Keeping It, Will Grow It!).
• MicroMentor
• 2,030 entrepreneurs enrolled since 2006.
• 1,560 mentors enrolled since 2006.
• Overall
• 83 of all clients are operating a business 18
  months after receiving MCNW services (MicroTest).
• The average increase in household income 18
  months after receiving MCNW services is 6,697 or
  23 (MicroTest).

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Other Initiatives

• LIFE program (find partner to bring program to WA
  state).
• IDA program (AFIA funding, find match to bring
  into WA state).

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Final Thoughts

• Consider this Loan Program and MicroMentor an
  option only if your community can get serious
  about investing in other ongoing business support
  resources on a local level, for example
• educating your entrepreneurs as they prepare to
  go into business, and
• continuing support as they become established and
  grow their businesses.

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www.mercycorpsnw.org/loans www.micromentor.org An
thony Gromko, WA Lending Manager agromko_at_mercycorp
snw.org