Microlenders merge

SOMERVILLE — Working Capital, a nonprofit lender that makes micro loans to low-income
business owners in Rhode Island and Massachusetts with no other access to commercial
credit is merging with ACCION USA, based in Boston, one of the largest micro-lenders
in the United States. The two lenders have worked together in the past. They both
direct their efforts toward low and moderate income entrepreneurs who have been
denied access to conventional lending sources because of a poor or nonexistent
credit ratings or the size of their enterprise. Expected to be completed in September,
the merger will bring Current Working Capital workers to the staff of ACCION USA.
The CEO of Working Capital, Jim Kaddaras will join the senior management team
of ACCION International. In Rhode Island, Working Capital’s affiliate is Island
Business Connection in Middletown. ACCION USA’s program serves 24 cities and towns
across the country. It is part of ACCION International which has pioneered microlending
internationally since 1973. Last year it reported lending $486 million 463,000
borrowers in 13 Latin American countries.