Fund small improvements to your business with this nonprofit microlender.
- Best for newer businesses that need a small amount of funding.
- Pick something else if you have an established business that can qualify for lower rates.
|Loan Term||6 months to 5 years|
|Min. Credit Score||575|
|APR||10.99% to 22%|
|Requirements||575+ personal credit score, business plan or financial projections for the next year, located in a home office or an incubator, decent credit and payment history|
How much will this loan cost me?
The cost of your loan will depend on how much you borrow. Accion offers loans from a low $300 to $250,000. Its terms range anywhere from six months to five years, and you can expect an APR up to 22%.
The fees you have to pay will also add to the total cost of your loan. Accion charges a $135 processing fee and a fee of 4% to 5% of your total loan amount to cover closing costs. Other fees, like prepayment penalties and late fees, aren’t listed on its website. Instead, you’ll have to speak with a representative or check your loan agreement to find out the full range of potential fees.
Accion may not be fully upfront with its costs, but you can use the calculator below to estimate your monthly repayment.
Monthly repayments calculator
Calculate how much you could expect to pay each month
|Loan terms (in years)|
Fill out the form and click on “Calculate” to see your estimated monthly payment.
How it works
Accion works with newer businesses, but the more established your business is — and the higher your monthly income and personal credit score are — the better your terms will be. There’s no set minimum APR available on its website, but if you want to borrow a larger loan or pay less in interest, improving your personal and business finances will be helpful when borrowing from Accion.
What do I need to qualify?
Accion’s eligibility standards depend largely on where your business is located. However, loans typically require you to meet these standard requirements:
- At least a 575 credit score
- No late rent or mortgage payments in the last 12 months
- No bankruptcies in the last 12 months
- No foreclosures in the last two years
- No overdue bills or payments on balances of $3,000 or more
- No adjustments on your mortgage rate
If your business is less than six months old, you have three additional requirements to meet:
- Business plan with financial projections for the next year
- Located in a home or an incubator
- Less than $500 in overdue debt payments
Accion may also require you to add a cosigner to your loan.
What information do I need to apply?
To fill out Accion’s online application, you’ll only need to provide some basic information, including:
- Social Security number
- Date of birth
- Total monthly profit
- Date business became profitable
- Information about your coborrower or cosigner, if applicable
- Type and value of collateral, if applicable
What industries does Accion work with?
Accion will not fund businesses involved in these industries:
- Real estate
- Mortgage brokerages
- Adult entertainment
- Drug paraphernalia
- Weight-loss products that aren’t FDA-approved
- Currency exchange
- Precious metal sale
- Gambling, lotteries or raffles
- Pyramid schemes
Lending institutions, nonprofits, development companies and collection agencies also won’t qualify for a business loan from Accion.
- Loans as low as $300 available
- Competitive rates for a microloan
- Accepts credit scores as low as 575
- Additional resources and training for small business owners
- $135 loan processing fee
- Limited maximum loan amount of $250,000
- History of poor customer service
- Complaints of slow approval and funding time