||| Investor FAQ's
When you invest in Capital for Change, you strategically invest in Connecticut’s people and communities. Capital for Change blends a mission-driven lending philosophy with the financial savvy of a bank. We use our capital to create economic opportunities and strengthen low-wealth communities. It’s a practical way to help their neighbors and communities and promote economic justice.
Our investors include dozens of socially concerned individuals, faith-based and civic groups, foundations, trusts, and financial institutions that invest in C4C through loans to the SII Community Loan Pool. This creates a lending capital pool, so that low-cost, flexible loans can be made to those who are unable to access conventional credit. Your funds are added to our approximately $5M SII lending pool. The risk is shared, and an investor’s funds will not be dedicated to a single project or sector. Individuals appreciate that Capital for Change has an unblemished record of repayment to investors. Investments in Capital for Change are protected by our significant net assets and our excellent history of repayment from borrowers.
Deposits from partners like you have helped Capital for Change deploy millions of dollars into communities that need it most, through low-cost, inclusive, flexible lending. It’s a practical way to help their neighbors and communities and promote economic justice.
“In keeping with our criteria for community investing, C4C invests in affordable housing development which ultimately assists low to moderate-income individuals and their families. We recognize and applaud them not only for affordable housing development, but the promotion of environmentally-friendly construction."
Lura Mack, Director of Portfolio Advisory Board, Adrian Dominican Sisters, Adrian, MI, investors since 2007
||| Why Invest?
C4C offers the investor an opportunity to:
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Be part of the solution to existing problems by pooling money with other community-minded individuals and organizations to make a significant impact.
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Invest locally in a socially responsible way and see tangible results
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Help build the capacity of community-based non-profit organizations and build more affordable housing
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Act on religious, political or philosophical convictions, aligning your money with your values
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See your funds used again and again, creating a renewable source for our community
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Earn social and economic dividends
||| Will My Money Be Safe?
Yes! Investments in our Loan Fund are not insured by the government, nor are they tax deductible charitable gifts, however, C4C has had a 30-+ year record of accomplishment of timely and full repayment to all investors.
Our Borrowers are supported with ongoing training and technical assistance to strengthen their projects. Our investor loans are pooled together so that no single SII investment is tied to a specific project.
Like a bank, C4C risk rates its loan portfolio outstanding on a regular basis and has an established Loan Loss reserve funded from our own equity sources (i.e. NOT funded with investor dollars). If a part or all of a loan cannot be repaid, that loss is funded out of our reserves. Further we have additional equity (or net assets) which would absorb any loan losses beyond what the Loan Loss Reserve could absorb. Finally, we have some investors (mostly financial institutions and government sources) whose investments are Equity Equivalents in that they are repayable loans but are subordinate to our other investors so that in the unlikely event that our net assets (currently $18.5M) couldn’t absorb a loss then these loans would absorb further losses prior to any of our investors not getting repaid.
C4C is a member of the Opportunity Finance Network, which sets standards and best practices for member organizations.
Steps to Invest - It's Easy as 1... 2... 3
STEP 1
Invest at least $1,000
Choose the amount you would like to invest.
STEP 2
Select your term
Fixed Simple Int. Rates:
1 - 2 years: up to 2.5%
3-7 years: up to 3%
7-10 years: up to 3.5%
10+ years: up to 4%
“I have invested in Capital for Change because it is the only true vehicle for social impact investing which is focused on the needs of all of Connecticut."
Joop de Groot, West Redding, CT, Social Impact Investor since 2013