An investment with impact, security, fixed-rate return
Why foundations invest in the New Hampshire Community Loan Fund
“Beyond 5%”: Foundations see the merit and impact of going beyond their grantmaking allowance to help the community. By investing a portion of their endowment in the Community Loan Fund, they further their mission beyond traditional grantmaking.
Trusted financial intermediary: The Community Loan Fund has been awarded the highest national honor in our field: the Wachovia NEXT Award for Opportunity Finance. We have consistently received a sterling AAA+2 rating from CARS™, the national rating service for community investing, which measures community impact and financial soundness.
Social impact: Foundations see an investment in the Community Loan Fund as an efficient and meaningful way of helping New Hampshire families with low and moderate incomes by helping to create or preserve housing, jobs and child care.
Your choice of terms: As lenders, foundations can choose terms as short as one year or as long as 25 years. Foundations, like all investors, receive a fixed-rate annual simple interest return of up to 1% for loans of one or two years, up to 2% for loans of three or four years, up to 3% for loans of five or six years, up to 4% for loans of seven to nine years, and up to 5% for loans of 10 years or longer.
Risk: This is an unsecured investment. It is not insured by the FDIC, nor by any governmental or private entity. Investments with the Community Loan Fund are not liquid assets: They cannot be redeemed or traded before maturity. While the Community Loan Fund has not lost any lender's funds, past performance is no guarantee of future performance.
Benefit: Your funds are added to our approximately $75-million lending pool: The risk is shared, and an investor’s funds will not be dedicated to any single project or sector. Foundations appreciate that the Community Loan Fund has an unblemished record of repayment to investors – through good and bad economic times. Investments in the Community Loan Fund are protected by our significant permanent capital and our excellent history of repayment from borrowers.
Uncorrelated investment: Investments here are straightforward and are uncorrelated to traditional fixed-income instruments. You will earn annual interest and your principal remains whole, regardless of the ups and downs of the bond market.
A tradition of prestigious foundations: Current lenders include the Ford Foundation, MacArthur Foundation, F. B. Heron Foundation, Calvert Foundation, the New Hampshire Charitable Foundation, the Endowment for Health, the Lantos Foundation and the Norwin S. & Elizabeth N. Bean Foundation.
In addition, we have investors from all categories, such as religious organizations, financial institutions, government and quasi-government organizations, and individuals.
Fixed maturity date: Your investment will have a fixed maturity date that can be renewed or paid out upon maturity, at your discretion.
Custom reporting: The Community Loan Fund has a 30-year history of working with institutional investors. If required, we will send you quarterly and annual reports that most effectively meet your requirements.
Next steps: To discuss how your organization can invest in the Community Loan Fund, please contact Debby Miller.