Hispanic Interest Coalition of Alabama (¡HICA!)

Our solution is reflected in the AGL model we started using in 2019 at the Hispanic Interest Coalition of Alabama. ¡HICA! started the Microlending Program (MP) in 2019 under its Community Economic Development Program using the Affinity Group Lending (AGL) model. This model is based on the trust and affinity between acquaintances gathered in a group to access loans. The MP includes financial evaluation and education provided to potential participants interested in taking small loans. Most of these participants are low- to moderate-income (LMI) individuals, mostly women, who do not have access to standard banking or financing institutions and want to start or expand their small businesses. AGL participants commit to paying back within the loan term. The program has expanded into providing larger loans to individuals since 2020 when Camino Loan Fund LLC, ¡HICA!’s daughter organization, was established to take charge of this project’s growth. This model is completely human-centered with the main goal of enhancing opportunities for underserved individuals and families to thrive.

Through ¡HICA!’s four inter-related programs, Hispanics have a pathway to empowerment. Many of them come to the organization in search of help for a variety of issues, though they carry on the load of language and cultural barriers, and consequently fear, and sometimes that of a status that limits their possibilities of progressing to achieve better lives. All constituents are offered opportunities to access services at ¡HICA! that are designed to provide the tools for empowerment and development and move families out of poverty. They are guided into developing the vision of new, improved pathways for their lives and that of their families (commonly their children). Those who show the desire to become entrepreneurs are connected with the Community Economic Development (CED) Program to discuss and explore their possibilities for opening a small business and access to step into entrepreneurship. Many of our constituents are unbanked and do not have access to traditional financial products. Hence, the Microlending AGL-based model fits well in providing positive possibilities to these constituents.

¡HICA! has been operational for almost 22 years and is the largest and most solid organization working for the Hispanic community in the state of Alabama. Our services are not duplicated by any other non-profit organization with a focus on minorities, specifically Hispanics and Latinos. We are differentiated just by our solid presence, sustained accomplishments, quality of service, and continual growth. 

The problem is the lack of access to financial products that can represent life-changing landmarks for Hispanics and other LMI immigrants in Alabama. The Microlending AGL model has been demonstrated to be an effective solution for this problem. Since its start in 2019, it has provided 41 loans to 27 unique individuals in AGLs, 20 of them being women who started to expanded their small businesses. Our model is aligned with the following challenges: 

1. Connecting small business owners and key stakeholders such as investors, local policymakers, and mentors with the relevant experience to improve coordination, collaboration, and knowledge bases within the small business ecosystem.

2. Assisting with access to capital, capital campaigns, and/or financial education and information

Our target population is composed of LMI Hispanics and other immigrants living in Central Alabama, though we now serve the whole state since adapting all our programmatic services to virtual since the 2020 Covid pandemic. Our constituents are represented by an average of 75% women, many are single parents and in the lower brackets of income. Most of them are parents and working outside of their homes is sometimes a limiting issue to improve their lives. The pursuit of being able to generate income out of a small home-based business can be life-changing.

¡HICA! serves an average of 3,500 individuals every year, 75% are women. Young adults to 59-year-olds make up 80% of our clientele. a total of 85% are Hispanics and about 15% are immigrants of other ethnicities. We are a totally inclusive organization and do not deny service to anybody who comes to our door and we can assist.

Alabama.

¡HICA! is a community development and advocacy organization that champions economic equality, civic engagement, and social justice for Hispanic/Latino and immigrant families in Alabama through culturally specific, bilingual Spanish/English services. ¡HICA! has been operational for almost 22 years and is the largest and most solid organization working for the Hispanic community in the state of Alabama. Our services are not duplicated by any other non-profit organization with a focus on minorities, specifically Hispanics and Latinos. We are differentiated just by our solid presence, sustained accomplishments, quality of service, and continual growth. Yes, it is our mission to help launch small businesses and/or to sustain small businesses by providing continuing technical assistance.

This year, 2022, is our fourth year using the model described. Before 2019, the Community Economic Development Program at ¡HICA! had already assisted the opening of over 230 small businesses in Central Alabama, however, without the component of being a source of loans to constituents who could not even start the steps of opening a small business. Our Theory of Change is actually a proven theory based on the practice of the Microlending AGL model. A total of 27 unique small businesses have been assisted through the support of this model since April of 2019 - some were start-ups and some were expansions of a previous small business. 

We currently have 4 ongoing loans, we have provided 40 loans since 2019. The 2022 goals are to open 30 small businesses and provide 30 loans totaling $200,000.

In five years we project that our solution will meaningfully affect up to 200 people. 

The community we serve is defined by low-to-moderate-income Hispanics and other immigrants.

The stakeholders are our funders, donors, and state government agencies. Local companies such as Alabama Power, Regions Bank Foundation, Wells Fargo Bank, Spire Giving Foundation, and Shipt are some examples of stakeholders.

Over the last 22 years in operation, we gained the trust of the Hispanic and mainstream communities because of the quality of our work. We communicate through social media platforms, we are mindful of presenting accurate and relevant grant requests as well as reports. Our CEO, Carlos Alemán, an immigrant himself who was brought to this country at the age of 3 knows first-hand what immigrants sometimes have to endure. He is a conscientious leader who believes in the cause embraced by the foundations of ¡HICA!.   

Over the last 22 years in operation, we gained the trust of the Hispanic and mainstream communities because of the quality of our work. Before the pandemic, we participated in and created many events throughout the year, allowing us to promote our services and establish a presence in the public eye. In 2020 and 2021, we sustained all programmatic activities by pivoting to digital means. In 2022, we have steadily progressed from a hybrid operation to now fully in-person in office operation. 

Camino Loan Fund LLC was awarded the CDFI Fund TA grant in October of 2021. We plan to apply for the CDFI certification by the end of 2023. Our impact goals are to be extended over the next 5 years to continue serving the community by expanding the number of loans, increasing the loan amounts, and increasing the number of new small businesses open through our assistance. Furthermore, we plan to replicate the model in other locations in the state of Alabama in order to extend the reach of its impact to communities outside of the Central Alabama region, including rural regions. 

Because we have tested the solution/model, have improved it, and have witnessed its success and impact on the community we serve.

We are applying because we believe our solution/model is innovative, effective, and meaningful for the underserved community that we serve, and it is aligned with the Inspire Awards. If this model could be replicated in other states, more people in this similar community would be benefited by having a chance to improve their lives.

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We are always open to partnering with organizations that align with our mission. We need help in financial support to increase/build staff capacity and sustain the loan fund.

Immigrant supporting organizations would be our first choice, followed by financial institutions that want to dedicate some funds for community service and development.