INVESTING IN THE FUND . . . a great way for Foundations and Trusts to double their impact!
The Community Loan Fund of the Capital Region is a 501(c)(3) Community Development Financial Institution (CDFI), certified by the U.S. Department of Treasury, providing loans, training and technical assistance to nonprofit organizations and micro entrepreneurs throughout the Capital Region. The heart of our work is to offer community-minded investors and donors a practical way to help their neighbors and communities and promote economic justice. Individuals, faith-based and civic organizations, trusts, businesses and foundations have invested through loans and/or donations 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.
Poverty, unemployment and homelessness are persistent problems in the Capital Region, and many urban and rural areas are in distress. The Community Loan Fund aims to build bridges between socially and spiritually motivated individuals and these organizations working for long-term solutions in our community.
The Community Loan Fund offers foundations and trusts an opportunity to:
- 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
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 as a unique resource to the entire Capital Region by:
- Lending capital for vital affordable housing, community and economic development projects;
- Expanding access to capital and filling credit voids in low income urban and rural areas;
- Encouraging economic self-reliance and offering financial technical support;
- Providing a link between socially concerned investors and communities in need.
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?
Here are a number of ways you can help:
- Invest in your Community Loan Fund. The Community Loan Fund is a responsible custodian for your investments.
- YOU choose your investment terms:
- Amount: $1,000 to $500,000
- Term: 1 to 20 years (A longer term, five years for example, is most helpful )
- 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.
- YOU choose your investment terms:
- 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 Community Loan Fund’s operating expenses and pay for the important training, technical assistance and monitoring that helps ensure borrower success.
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 Community Loan Fund are not insured, but security derives from a healthy loan loss reserve, close loan monitoring, responsible management and a shared sense of commitment by all parties.
- Borrowers are supported with ongoing training and technical assistance to give borrowers every opportunity to succeed.
- The Loan Committee carefully evaluates each loan application and business plan and approves 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) and has earned several large grants based on its own business plan, delivery of its promised goals and sound fiscal management.
For more information or to get started, contact Linda Chandler at (518) 436-8586 or email@example.com.