Contact Fund invests in high-impact community development projects of organizations with a track record of success. Please refer to our current portfolio for examples of organizations and projects in which Contact Fund invests. Our lending criteria are listed below.
If you’re interested in becoming a part of Contact Fund’s portfolio, please e-mail us
Contact Fund’s Lending Criteria
Process: Loan proposals are reviewed by a three-member loan committee with a collective 50 years of experience in lending.
Covenants: All loans are subject to specific financial covenants, as well as a requirement to provide audited annual financial statements and internally prepared quarterly financial statements.
Terms and Structure: Short term of 1-3 years; floating interest rate when possible; interest rates near mainstream market levels; borrowing organization’s demonstrated efficiency and effort toward self-sufficiency. The Fund offers a high degree of flexibility within these basic constraints.
Strong credit quality: The Fund performs due diligence on each organization, reviewing audited and internal financial statements, industry comparative data, and professional references. All new investments are reviewed by a three-member loan review committee with a collective 50 years of experience in underwriting.
Demonstrated need for financing includes:
a. Loan fund capitalization. Lending organizations such as micro-lenders and small-business loan funds leverage their net assets by borrowing capital to make more loans.
b. Pre-development financing. Real estate development organizations require early-stage debt financing to launch new projects, covering costs such as architectural fees and environmental studies.
c. Working capital. All organizations require periodic financing to cover standard delays in the receipt of payments for services.
d. Expansion capital. High-growth organizations seek financing to buy larger-scale assets or finance growing amounts of working capital.