Ten Years. $5 million in loans. 1,000 jobs.
In 1999, CEO Grace Fricks founded ACE in response to the lack of available start-up capital for North Georgia Technical College graduates wanting to start businesses. Fricks and Kim Foster, former ACE board member, decided to create a loan fund to serve North Georgia with financial backing from the Appalachian Regional Commission. Presently, ACE serves 68 counties, including all of North Georgia and the Atlanta metro area.
Between 2000 and 2010, ACE has made more than $5 million in loans and created or retained more than 1,000 jobs. Loans range from $500 to $50,000; the average loan is about $18,100. Presently, the outstanding loan portfolio is $2.1 million.
Facts about ACE’s customers:
- 40% are start-ups
- 61% are women
- 14% are African American
- 20% are Hispanic
ACE is an SBA Microloan Intermediary, a USDA Intermediary Relender and a certified Community Development Financial Institution (CDFI). Operation as a CDFI means creating jobs and opportunities for low income and under-served populations while executing sound financial and portfolio management. Certification requirements are stringent and include maintaining certain operating ratios and continued reporting to the US Department of Treasury. Sources of loan funds include SBA, USDA, U.S. Treasury, banks and foundations.
In response to the lack of financing for environmentally-friendly small business projects, ACE created Georgia Green Loans in 2008 to serve green businesses and those seeking to develop sustainable business practices. The target market is slightly broader than ACE’s historical customer pool as it targets small businesses without regard to income or size, although businesses fall under the SBA size guidelines. The program operates under ACE’s administration but has its own capital pool, budget, loan application and tracking system. In 2010, ACE added the Save and Sustain program, which provides subsidized energy audits and low interest commercial energy efficiency loans to small businesses throughout Georgia. The State of Georgia’s Environmental Finance Authority funded Save & Sustain’s loan pool.
As one of the first SBA lenders to specialize in green business development, ACE’s work is attracting state and national attention. In 2009, ACE received a national capacity building SBA PRIME grant to assist organizations across the nation develop a green program. ACE is also a 2009 member of the competitive Aspen Institute Scale Academy Working Group, which assists organizations in reaching scale.
Through a partnership with nonprofit lenders Albany Community Together, Albany, GA; and Small Business Assistance Corporation (SBAC), Savannah, GA; Georgia Green Loans are offered statewide.