Nonprofit supports launch of community startups
When Shreveport young professional Brent Latin decided to try entrepreneurship, he found out early in his career that conventional methods of funding weren’t going to work in his favor.
“We started in 2008 – right out of high school, but we became a LLC in 2011,” Latin said. “We moved to our 515 Marshall St. location when I graduated from Louisiana Tech – a little over four years ago.”
Latin said at that point, he went to a large bank for a loan.
“The lady kind of laughed at me because I was young,” he said. “I didn’t have any credit history at all. It was disappointing.”
Enter LiftFund. The organization formerly known as Accion Louisiana, is the nation’s largest nonprofit microlender, and it was just what Latin’s new business, Young Professionals Entertainment, needed to go to the next level.
“I went to a small business development seminar at LSU [Shreveport], and they had a representative from Accion there,” he said. “I got her information and contacted her the next week, and we went from there.”
Although the paperwork was still daunting, Latin said he feels LiftFund was a better fit for his business than a conventional lending institution.
Young Professionals Entertainment provides audio/video services for events and has a professional recording studio. Latin describes his company as multimedia. YPE produce television shows on local affiliate channels and record artists in the area. They also work at weddings as photographers, videographers and provide music.
With initial LiftFund financing, Latin and his business associates expanded their audio and video equipment.
“We also used [funds] for marketing,” he said. “I remember we did a TV commercial campaign and had several billboards around the city.”
Business is great – and that fits perfectly with LiftFund’s goal. “The mission of LiftFund is to provide credit and services to small businesses and entrepreneurs who do not have access to loans from commercial sources and to provide leadership and innovation to the microlending industry,” Janie Barrera, LiftFund president and CEO, said. “After three small loans with LiftFund, clients on average increase business equity by 22 percent, bring in 67 percent more in monthly business profits and increase take home pay by 44 percent.”
Barrera helped found Accion Texas Inc. in San Antonio in 1994, with the assistance of Accion International based in Cambridge, Mass.
For
17 years, Accion Texas expanded throughout the state of Texas,
branching from San Antonio to El Paso in 1996, to Houston and the Rio
Grande Valley in 1998, and to Austin and Dallas-Fort Worth in 1999.
Then
in 2009, Accion Texas expanded into Louisiana, at the invitation of
leaders seeking to spur economic development by supporting small
businesses in the state. In 2011, at the invitation of the Delta
Regional Authority, Accion Texas expanded into Alabama, Arkansas,
Kentucky, Mississippi, Missouri and Tennessee.
“Since
January 2015, our small business owners created 406 jobs and retained
625,” Barrera said. “[Small Business Association] 504 borrowers reported
creating 136 jobs. Since 2013, our business owners have created and
retained a grand total of 10,764 jobs and our SBA business owners
created and retained 854 jobs.”
Recently,
Chase Bank signed on as a presenting sponsor of LiftFund’s “Rollout
Tour.” “Chase has been a strong supporter of the microlender since its
founding, providing volunteer support and grants, including a $5 million
grant in 2011,” Barrera said.
–Bonnie Culverhouse
Liftfund Financial Profile:
Total Number of Loans: 16,357
Total Dollars Disbursed: $190,576,080
Active Portfolio: $33,074,363
Total Loans Under Management: $39,747,304*
Average Loan Balance: $14,308
Loan Range: $500 - $250,000
(Up to $5.5 million in Texas through the SBA 504 program)
*Includes LiftFund and Servicing Portfolio as of March 31.
To learn more about LiftFund, go to www.liftfund.com. For more information about Young Professionals Entertainment, go to www.youngprosent.com or call
318-759-7767.
