Accion business microloans review
Fund small improvements to your business with this nonprofit microlender.
finder.com’s rating: 3.6 / 5.0
- 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.
|Product Name||Accion business loans|
|Loan Term||6 to 60 months|
|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|
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Accion is a nonprofit lender and a good resource for small businesses or startups that have had trouble finding funding in the past. Rather than focus on profits, Accion’s goal is to encourage the growth of small businesses in underserved areas or communities worldwide. And while its APRs go as high as 22%, its loans are still relatively inexpensive when compared to other microlenders out there.
However, its application comes with relatively strict eligibility requirements — although you may still qualify with a credit score as low as 575. Accion also has quite a few fees many other lenders don’t charge. An application processing fee and loan closing fees can add to the cost of your loan, especially if you borrow its maximum loan amount of $250,000.
You should compare more business loans before making a final decision.
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 6 months to 5 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)|
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
See other top business loan options
Is Accion legit?
Accion reviews and complaints
Accion only has one review on Trustpilot, and it’s negative. The potential customer complains about an unresponsive representative. However, this is a single experience. We recommend reaching out to other business owners in your community to see if they’ve had any luck with Accion and their experience since Accion representatives work locally.
How do I apply?
Accion has a quick online application and only requires you to provide the most basic details about yourself and your business.
- Visit Accion’s website and click Get started.
- Enter your full name, ZIP code and email, then click Continue to application.
- Enter information about yourself, your basic credit history and your business. Then click Next.
- Enter how much you would like to borrow and select your loan purpose.
- Provide more information about your business finances and a coborrower or cosigner, if applicable.
- Select the type of collateral you want to provide, if any, then enter your date of birth and Social Security number.
- Read Accion’s terms and conditions. Then click Next to submit your application.
What happens after I apply?
Accion will reach out to you by phone or email within one to two business days to continue the application process. You will work directly with an Accion representative to ensure your application is competitive, and you may need to provide more information to finalize your loan. This will likely include some of the following documents:
- Government-issued photo ID
- Copies of your last three personal and business bank statements
- Copies of your business’s tax returns from the last two years
- Recent utility bills and mortgage payment
- Profit-and-loss statements, cash flow statements or balance sheets
Startups may also need to provide proof of the six months of revenue, a business plan, a market analysis, proof of personal income and two recent pay stubs from a cosigner.
How do repayments work with Accion?
You will need to make monthly repayments to Accion according to your loan schedule. How you repay your loan — and what fees you might be charged — can be found on your loan agreement.
Frequently asked questions
Business loan ratings
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.