INVESTING IN THE FUND… An affordable and effective way for businesses to build a healthier local economy and community
The heart of our work is to offer community-minded investors a practical way to help their neighbors and communities and promote economic justice. Businesses, individuals, faith-based and civic organizations, foundations, trusts and financial institutions invest through loans to the Community Loan Fund, creating a lending capital pool so low-cost flexible loans can, in turn, be made to those who are unable to access conventional credit. In this way, the Community Loan Fund provides an opportunity for individuals and organizations to participate as part of a lasting solution to poverty.
The Community Loan Fund offers businesses an opportunity to:
- Strengthen the local economy and future customers
- Be part of the solution to existing problems by pooling money with other community-minded individuals and organizations to make a significant impact
- Invest locally, in a socially responsible way and see tangible results
- Provide affordable housing, decent jobs and quality social services
- Help build the capacity of individuals and community-based non-profit organizations
- Act on religious, political or philosophical convictions, aligning your money with your values
- See your funds used again and again creating a renewable resource for our community
- Earn social and economic dividends while strengthening local communities
- Be a good corporate neighbor and build goodwill
Who benefits from our investment?
EVERYONE! Capital is essential to developing and maintaining healthy communities. Small businesses are the backbone of our economy and community nonprofits provide vital services, frequently filling in the gaps in low-income populations and neighborhoods. Since 1985, the Community Loan Fund has served the Capital Region through:
- Affordable Housing- financing affordable housing for working low and moderate income families
- Community Facilities- financing important institutions such as day care centers and community centers.
- Microenterprise Lending- providing access to capital and technical assistance so that low income and disadvantaged people and communities can build economic self-sufficiency through small businesses.
- Training and Technical Assistance for micro-enterprises, small businesses and nonprofit organizations- providing business survival skills needed to ensure succes
What are the results?
With a small—albeit determined—staff and over 500 donors, investors and volunteers, the Community Loan Fund has:
- Closed over 700 loans to nonprofits, social and micro-enterprises totaling more than $36 million
- Created more than 1,075 affordable housing units
- Created or retained close to 1,500 jobs
- Leveraged more than $155 million in local community and economic development
- Provided training and technical assistance to thousands of micro and social entrepreneurs.
Just think of what we can do with your help!
How can we help?
Invest in the lending capital fund
- YOU choose your investment terms:
- Amount: $1,000 to $500,000
- Term: 1 to 20 years
- Rate: zero to 1.5% fixed rate, depending on the chosen term length. Interest is paid annually at year-end.The lower the interest rate and the longer the term, the more we can meet the community’s needs.
- You (the lender) and your Community Loan Fund (the borrower) sign a simple Loan Agreement that spells out the investment terms you have chosen and you will receive a Promissory Note, the Community Loan Fund’s promise to repay you according to those terms.
- When the maturity date (the end of the term) nears, we will contact you to offer you the opportunity to renew your investment in the community, change the investment terms or receive repayment.
Donate Funds. You can donate to the lending capital pool which allows for making higher risk — but higher social impact — loans. Donations also help with the Loan Fund’s operating expenses and pay for the important training, technical assistance and monitoring that helps ensure borrower success.
Donate In-kind Services or Products. Helping to keep down administrative operating expenses helps the Community Loan Fund to provide more training and outreach to serve clients
Will our money be safe?
- The Fund has had a twenty-five-year record of accomplishments with timely repayments to investors resulting in a 100% perfect repayment rate to all its lenders, since 1985.
- All investors share any risk but our cumulative loan loss rate is less than 2%.
- Loans to the Fund are not insured, but security derives from a healthy loan loss reserve, loan monitoring, responsible Fund management and a shared sense of commitment by all parties.
- Borrowers are supported with ongoing training and technical assistance.
- The Fund carefully evaluates each loan application and business plan and makes loans that are socially worthwhile and financially sound.
- The Community Loan Fund is a member of the Opportunity Finance Network, which sets standards and best practices for member organizations.
- The Community Loan Fund is certified by the U.S. Department of Treasury as a Community Development Financial Institution (CDFI), receiving several competitive grants from its CDFI Fund as well as from NYS Empire State Development Corporation, based on annual business plans, delivery of its promised goals and sound fiscal management.
For more information or to become an investor, contact Linda Chandler at (518) 436-8586 or firstname.lastname@example.org.