San Diego.- Efren Losoya did what many others have done after losing their jobs in this tough economy. The 38-year-old former car sales manager started his own business.

Losoya opened a used car dealership two years ago, saw an opportunity to expand, but lacked the capital to do it. Banks were tightening their credit. He didn't think he would qualify for a conventional loan.

But then he found ACCION San Diego, a flexible nonprofit micro-lender that provided him with a $25,000 short-term loan. The money allowed him to add car registration and car insurance services. He currently employs three people at his eNet Auto business on Mission Gorge Road in San Diego.

The micro lender, he said, "helped me remain employed in my own business and allowed me to be able to employ others."

Alternative financer

ACCION San Diego has been helping low-to moderate-income business owners in the county for many years with loans ranging from $300 to $35,000.

It works with small business owners who may have had credit issues though it does require them to be current on their credit. Start-ups must demonstrate the ability to repay the loan.

"Our loan program is a good alternative option," ACCION San Diego Executive Director Elizabeth Schott said.

In addition, the nonprofit provides financial education and technical assistance --including individual counseling and workshops in Spanish.

Other nonprofits in the San Diego area that provide microloans include La Maestra, the Foundation for Women and International Rescue Committee and CDC Small Business Finance.

ACCION San Diego is part of an international network of micro-lenders that began as an anti-poverty lending program in Latin America in the early 1960s and came to the United States in the early 1990s.

The local nonprofit, which is based at the Jacobs Center in southeastern San Diego, is one of 14 field offices across the nation. Since opening in 1994, ACCION San Diego has provided $15 million in loans to more than 1,500 small businesses. The average loan is about $7,500.

Many borrowers eventually qualify for traditional bank loans, Schott said.

Small businesses have been getting a lot of attention in recent years as the nation struggles to find its way out of a recession, marked by high unemployment.

Small businesses are seen as a key part of the solution.

"Small businesses really are half of the economy. Two out of every three new jobs are created by small businesses," said Marie Johns, deputy administrator of the U.S. Small Business Administration during a visit to San Diego last month.

"Half of the people working today are working either in their own small business or in a small business," said Johns, who was promoting the Small Business Jobs Act of 2010.

The federal legislation added billions of dollars to help support small businesses, including boosting loan programs in underserved communities and raising the ceiling on SBA microloans from $35,000 to $50,000.

SBA-backed microloans are offered through designated nonprofit financial intermediaries, which in the county is the CDC Small Business Finance.

ACCION San Diego receives funding from the city and the federal government as well as from private donors, foundations, corporations and banks.

Helping minority-owned businesses

About two-thirds of ACCION San Diego's borrowers are minority business owners. More than one third is Latino.

Minority-owned businesses are a significant part of the nation's small business sector.

Nationwide, the number of minority-owned businesses, including those owned by Latinos, increased at more than twice the rate of all U.S. businesses between 2002 and 2007, the U.S. Census Bureau reported last year. The federal agency surveys business owners every five years.

Minority-owned businesses made up more than one fifth of the nation's 27 million businesses. Latino-owned businesses totaled about 2.3 million, according to the census survey.

Many of ACCION San Diego's loan recipients are immigrants and refugees who are still learning the U.S. financial system and building their credit history.

"We do work with many populations that may not be educated on loan requirements, credit or finances," Schott said.

"Many of our clients also sometimes need help understanding the traditional banking system and how to access capital."

Luis Argoti, 45, joined the ranks of small business owners three years ago when he opened a natural health store on E Street in Chula Vista. But he needed help.

The Peruvian immigrant who has been in the country 11 years lacked credit history and turned to ACCION San Diego for a microloan, which he said has made a difference. Revenues are up and his credit score has increased.

"ACCION has been very important in helping me realize my dreams," Argoti said.

Leonel.sanchez@sandiegored.com