Access Plus Capital is a Community Development Financial Institution (CDFI) serving Central California's small businesses through a variety of financial products and services from start-up funds for entrepreneurs, to loans up to $500,000 for more established businesses. With offices in Fresno and Bakersfield, they have a mission to create economic opportunities and build wealth in the low- and moderate-income communities they serve.
 
The diversity of the Central Valley is driven by global trends in immigration that have occurred over centuries. Recently, migrant farmworkers from Latin America have put down roots here as have refugees from civil wars and political instability in Southeast Asia. Despite a robust agricultural sector, the region has historically seen a lack of economic investments by private funders and foundations in comparison to the areas it is sandwiched between, Los and Angeles and the San Francisco Bay Area. All of these structural factors, intersecting with lower levels of formal education  have  created barriers to wealth accumulation and economic prosperity for many Central Valley communities.
 
“The income gap gets a lot of attention,” says Jeremy Hofer, Director of Operations, “but we see the wealth gap as an even deeper issue. You might have a family that is considered middle class in terms of income but deeply in the red in terms of wealth. If we’re really about fighting poverty we need to address the inequality in how wealth is distributed. We do this by helping entrepreneurs build small businesses. By supporting job creation and entrepreneurship, we hope to increase income and wealth. Whether it’s providing a referral or working with our borrowers on their marketing or financials, we try to meet them where they are at.” Access Plus Capital also sponsors trainings and workshops from one end of the 450 mile long valley to the other.
 
Access Plus Capital's business services are tailored to support low-moderate income small business owners and signing on to the Small Business Borrower’s Bill of Rights (BBoR) was an easy step. “It was a no-brainer,” stated Jeremy. “Whether we had the policy or not, we found we were following the principles of the BBoR already. It’s just the right thing to do.”
 
In terms of advancing fair lending practices in the small business lending industry Jeremy had this to say, “Strengthening disclosures in the online lending field is something that is needed. We do a lot of refinancing work with people who are uncertain of the true cost of the capital that they took out. There needs to be more credit education out there because financing a business can be tough to navigate, especially during a crisis moment.” In addition to disclosures, ethical standards for collections practices are a necessary component of fair lending. “A big part of lending is collections,” says Jeremy, “It’s not just about transparency in fees and getting out the money, it’s around fair treatment of borrowers and making sure that third-party collectors are in the same ethical space as we are. We try to be compassionate with our borrowers' circumstance and work side by side with them over time, not just at the time of the sale. We think this should be standard practice for the industry.”

We thank Access Plus Capital for taking the time to talk with us about the importance of the Small Business Borrowers’ Bill of Rights in the small business lending Industry. 
 
If you are interested in learning more about the Small Business Borrowers’ Bill of Rights please email info@responsiblebusinesslending.org.
 
If your organization is currently a signatory or endorser of the Small Business Borrowers’ Bill of Rights and would like to be featured in our blog, please contact Gabriel at Gabriel@opportunityfund.org.

Gabriel Villarreal of Opportunity Fund (a Small Business Borrowers’ Bill of Rights founder) sat down with Brian Pifer, Vice President of Entrepreneurship, with Small Business Majority. The organization is a founder of the Small Business Borrowers’ Bill of Rights and have been endorsers since the BBoR launched in 2015.  
 
Small Business Majority got its start in 2005 under the leadership of its Founder & CEO, John Arensmeyer, as a network of small businesses concerned about policy issues affecting small business owners. Since then it has since grown into a nationally-recognized small business advocacy organization, working in 10 cities across the country, and expanded its scope to encompass not just policy work, but research, education, training and resources for small business owners as well. At its core, Small Business Majority believes in the power of entrepreneurs: “Small business entrepreneurship is a proven pathway for Americans from all walks of life to build income, independence and financial security for themselves, their families and their employees. If provided the proper resources and public policies to unleash their potential, they inject life and vitality into communities, provide quality jobs and boost prosperity for all.”[1]
 
Their initial policy engagements with issues like healthcare reform led them to recognize other challenges facing small business owners, such as access to capital, and launch its Entrepreneurship Program in 2015 to provide education and resources to underserved small business owners. “We see ourselves as bolstering the capacity of lenders and other organizations working in the lending space,” says Brian. “It’s a hub and spoke model where we are involved with different organizations all over the country, small businesses, chambers of commerce, lenders, and technical assistance providers in varying capacities. This allows us to make connections between different organizations that can support each other and better serve small businesses.”
 
Small Business Majority’s direct connection to the small business community allows them to be responsive to the needs of small business owners, building policy platforms and providing resources informed by the needs of its partner organizations. This is what led them to become a founding member of the Responsible Business Lending Coalition (RBLC) and a lead endorser of the Small Business Borrowers’ Bill of Rights in 2015. “What we’ve been hearing consistently from our network on the ground, and chiefly across the board, is that accessing capital is a key issue for all small business owners and especially underserved entrepreneurs, “says Brian. “Because underserved business communities lack access to capital through traditional methods, many small business owners end up taking on high-cost credit products. The question we try and help them answer is ‘Where are the responsible lenders that can help them access the capital they need at fair rates so they can grow their businesses?”
 
In talking about online lending, Brian takes an optimistic view: “There is a lot of promise in the online lending space and a lot of access there. That’s why we helped write and endorsed the Borrowers’ Bill of Rights, so that we could help small business owners make informed decisions in a fair and transparent marketplace.”
 
To this end, Small Business Majority also regularly publishes research on the small business lending industry highlighting various issues, including research on access to capital and online lending. A recently released survey of over 500 small business owners indicated that 80% of small business owners believe online lenders should be regulated and furthermore, that 74% see predatory lending as a major problem facing themselves and the industry.
 
“When you get 80% of folks agreeing that something is an issue, it’s probably something you should take a look at,” says Brian about the results of the study. “Small business owners are aware that this is a challenge, and I think that’s pretty telling. But… that’s why we joined the RBLC and that’s why we support the Rights. Our hope is that these Rights can be an avenue for advocacy and be an inroad towards ensuring policymakers are aware of these issues. We want to work towards a solution where products are offered responsibly, and small businesses can thrive.”
 
We thank Small Business Majority for taking the time to talk with us about their advocacy work and the importance of the Small Business Borrowers’ Bill of Rights in the small business lending Industry. 
 
If you are interested in learning more about the Small Business Borrowers’ Bill of Rights please email info@responsiblebusinesslending.org.
 
If your organization is currently a signatory or endorser of the Small Business Borrowers’ Bill of Rights and would like to be featured in our blog, please contact Gabriel at Gabriel@opportunityfund.org.
 
 
 


[1] http://www.smallbusinessmajority.org/about-us