Most of our funds for lending come from borrowed capital. When you invest with us, your investment becomes part of CLW’s pool of loan capital. This revolving loan fund helps between 75-100 individuals and small businesses each year.
Your investment is also an important part of our strategy for self-sufficiency. Favorable terms on borrowed capital reduce our interest expenses and improve our profitability, thus reducing the need for operating grant support.
CLW is also an affiliate of NEDCO (Neighborhood Economic Development Corporation). CLW is uniquely positioned to help under-served people achieve their goals, because we partner with NEDCO’s financial literacy, homeownership, and microenterprise education and counseling; and individual development accounts (matched savings toward the purchase of a specific asset).
- Promoting community development and economic development in distressed areas through the introduction of capital otherwise unavailable;
- Providing loans and other financial products in arms-length transactions to under-served people;
- Delivering education and counseling to such persons to prepare them for, or assist them in, the use of financial products either directly or through contracts with other providers;
- Offering a hand-up to low-income and marginalized people by removing obstacles to business ownership and business development.
For more information on making a high-impact investment in your community, contact Emily Reiman, Executive Director.
+ Why is a CDFI so vital to our community?
Community Development Financial Institutions—or CDFIs—emerged in response to a lack of access to responsible and affordable credit and capital in minority and economically distressed communities. The Community Development Financial Institutions Fund (CDFI Fund), part of the U.S. Department of the Treasury, plays a unique and important role in generating economic growth in America. By fostering the creation and expanding the capacity of community-based financial institutions that specialize in providing affordable credit, capital, and financial services, the CDFI Fund builds businesses, creates jobs, and revitalizes neighborhoods.
+ What is CLW's impact?
Check out Our Impact page!
+ Is my investment treated as a loan?
Investors choose the amount they would like to invest, the term, and interest rate from the following:
- A minimum of $1,000-$250,000+
- A term of 2 to 5 years
- An interest rate of 1.25% – 2.00%
To protect investors, CLW's loan loss reseve is evaulated quarterly based on loan growth and case performance
+ Will I receive a return?
Investors make the choice to receive accrual interest annually on the anniversary date or upon maturity. At the end of the term or the end of the year, investors receive a check with the total interest they have accrued. Upon maturity, investors have the choice to roll over the principal for another investment, or request that the principal be returned. Investors also receive a social return on investment, enjoying the satisfaction of knowing they have helped create economic opportunity in their community.
Although investments are unsecured and there is no guarantee the entire principal payment will be returned, Community LendingWorks is a financially stable organization that has never defaulted on a loan.