Accion Opportunity Fund (AOF), a nonprofit organization focused on promoting economic mobility for small businesses, has introduced a financial learning platform in collaboration with the Mastercard Center for Inclusive Growth. This platform, named Learn with AOF, aims to enhance the financial stability of small businesses by assisting them in building credit and preparing for capital acquisition.
AOF has set a goal to provide $750 million in new capital to underserved businesses over the next five years. The Learn with AOF platform is designed to facilitate access to these loans, which is increasingly vital as various crises, including the COVID-19 pandemic and natural disasters, impact small business operations.
Luz Urrutia, CEO of AOF, stated the organization’s objective is to establish itself as a scalable, mission-driven lender for underserved small businesses in the United States. Urrutia emphasized the importance of scaling lending operations while maintaining personalized support for business owners. The creation of Learn with AOF was influenced by feedback from small business owners who expressed a need for better access to capital and financial education to improve their loan applications and overall financial literacy.
Research indicates that access to capital can significantly benefit small businesses, with each dollar invested generating over two dollars in new wages, spending, and taxes. Furthermore, loans from AOF are expected to support at least two jobs per loan. However, many small businesses face challenges in obtaining necessary funding, with 79% unable to access the capital needed for growth, leading to a substantial financing gap.
The Learn with AOF platform is intended to empower small business owners by enhancing their financial management skills. Sandy Fernandez, Vice President of Social Impact at the Mastercard Center for Inclusive Growth, noted that economic opportunity encompasses more than just access to capital; it also involves providing the necessary financial knowledge and tools for long-term planning and responsible financial product access.
Learn with AOF distinguishes itself as a digital financial education resource developed by small business owners who understand the challenges faced in managing finances. Drawing on AOF’s extensive experience, the platform offers free and adaptable content relevant to business owners at various stages. It organizes financial topics into manageable segments and provides customized learning paths tailored to individual financial needs. As users progress, they gain access to free tools and templates to implement their learning effectively.