Colonias Success Stories

Information by State  Print version   Gavina Barrera (left) is joined by a neighbor and Richard Lopez, HUD Program Specialist, San Antonio Exiquio Salazar Sara Rangel and her husband

ACCION Texas is helping small business owners with the financial assistance they need to establish or grow their businesses. In addition to their microlending activities, they have established a Border Lending and Savings Initiative in the colonias aimed at the Texas/Mexico border as well as an IDA Match Savings Program that allows clients to set aside money into an interest-bearing bank account. At the end of two years, the client receives the total savings - doubled by a dollar-for-dollar match - plus the interest accumulated in the account.

The ACCION Texas IDA program was launched in 2002 as a result of a $250,000 grant from HUD. Partnerships were also set up with local branches of International Bancshares Corp. (IBC) and Wells Fargo banks in selected border cities to maintain these savings accounts. The IDA Match Savings Program, designed exclusively for microloan clients in the colonias, offers them an opportunity - perhaps the first one they ever had - to build assets and equity in their businesses. ACCION Texas has seen many clients start and expand their businesses, and has celebrated with them as they take the next step toward financial independence through short-term savings.

ACCION Texas has now completed recruiting for the IDA program. Following are short profiles of some of its IDA participants.

Gavina Barrera

Gavina Barrera lives in a colonia near Rio Grande City. When she first came to ACCION Texas in February 2002, she had been doing business for 12 years. Gavina buys and sells everything from clothing to charcoal. She received a $200 loan to purchase working capital--merchandise from Mexico-- which she can buy at a low price and sell at a profit. In October 2002, she came to ACCION Texas for another loan, this time for $600. She used the second loan to build a room to store her business inventory.

Gavina has one of the longest tenures in the IDA program. She signed up for the match savings plan in March 2002. She has been setting aside a modest deposit and turning in very detailed business ledgers for over a year, demonstrating her willingness to learn. So far, she has saved $200. This money, plus whatever additional amount she saves in another year, will be doubled. She also will receive the interest accrued on her savings. Gavina hopes to buy more merchandise to sell with these match funds.

Exiquio Salazar

Exiquio Salazar sells cowboy boots, work boots and children's boots in McAllen. He also sells belts, belt buckles, hats, and cowboy shirts at an indoor flea market in Corpus Christi. He has been in business for six years. Exiquio first heard about ACCION Texas from the Small Business Development Center in Edinburg. He used his loan to buy new belts and belt buckles that he was previously unable to afford. "I believe that I am still in business because of ACCION Texas," says Exiquio.

An IDA participant since February 2002, Exiquio is taking full advantage of the savings program and has saved over $1,900. His goal is to save enough capital to open a local shop in McAllen.

Sara Rangel

Sara Rangel has been operating Los Fresnos Tuxedo Rentals for about eight years. The only business of its kind in her area, her shop specializes in tux rentals, alterations and dry cleaning. In 2000, Sara found herself needing to pay property taxes on her storefront, so she went to her local SBA for guidance. While at SBA, Sara learned about ACCION Texas and was granted a $5,000 loan. She maintained a perfect repayment record on that loan, and received a second ACCION loan to purchase inventory.

Sara became one of the first participants in the IDA program. A successful businesswoman, Sara recognizes the benefits both programs have given her. Because of ACCION Texas, she has been able to take out a bank loan and has been saving about $400 every month so she can eventually make improvements to her storefront.