International Rescue Committee – CEO recoverable grant

International Rescue Committee

 

Nonprofit fund, subsidiary of the International Rescue Committee, providing zero-interest, small-size loans and financial coaching to immigrants and refugees impacted by COVID-19.

 

Min. Investment:

$25,000

Potential Return:

0%

Term:

3-year

 

Impact

Help refugees and immigrants fund basic needs, reduce interest burden, build credit, and improve financial literacy.

 

Beneficiaries

Refugees, immigrants, and credit-thin individuals

 

Focus

Economic relief

 

Geography

United States

Potential Funding Example

Financing to a family from El Salvador for $1,400 to allow them to pay off 20%+ interest rate auto loan; family also receives financial coaching and support from IRC.

 

Risk Considerations

Small-dollar lending to this vulnerable community will result in defaults or deferred payments. CEO funding pool has subordinated grant capital providing 25% first-loss capital, which can reduce loss of recoverable grant capital.

* Structure and terms are being finalized

LIIF COVID-19 Relief Fund

Liif cover-19 relief fund

 

Nonprofit fund providing COVID-related relief to borrowers in the healthcare, PK–12 education, housing, and community services sectors.

 

Min. Investment:

$100,000

Potential Return:

0%

Term:

2-year

 

Impact

Defer principal and interest and/or provide new funding to allow nonprofits and social enterprises affected by COVID-19 to maintain operations.

 

Beneficiaries

Low-income communities and businesses

 

Focus

Economic relief

 

Geography

United States (focus on CA, NY, NJ, DC)

Potential Funding Example

Deferral of principal and interest on a loan to a nonprofit health clinic providing care to poor and uninsured residents of northwest Pasadena.

 

Risk Considerations

Recoverable grants will serve as first-loss capital in a pool of current and future loans to businesses impacted by COVID-19. Thus, investors should anticipate some or a significant loss of capital.

Open Road Impact Fund

Open Road Alliance

 

Fund providing social enterprises and nonprofits with access to immediate low-cost financing to counter near-term business disruption and lost revenue from COVID-19.

 

Min. Investment:

$200,000

Potential Return:

1-2% annually

Fees:

2-3.5%; incl. in net return

Term:

5-year+

 

Impact

Help social enterprises maintain operations despite business disruption from the COVID-19 pandemic.

 

Beneficiaries

Social enterprises, their employees, and their communities

 

Focus

Economic relief

 

Geography

United States/Developing Countries

Potential Funding Example

18-month low-interest loan to a community center in Chicago forced to shut its doors and cut staff due to state operating restrictions.

 

Risk Considerations

Lower-risk bridge financing balanced with longer-term funding that may need restructuring or extension in prolonged downturn. Risk of loss may be increased since Open Road does not limit risk exposures to specific industries/countries.

Risk considerations of opportunities outlined in this sourcing report are provided for guidance only and may change with new information. All recoverable
grants and investments carry risk of capital loss, and this risk increases in a prolonged economic downturn caused by Covid-19. Please consult each issuer’s
detailed risk disclosures for more information on risks.

 

Disclosure: The above information does not constitute an offer to sell or a solicitation of an offer to purchase any security. Any such offer or solicitation
shall only be made pursuant to a definitive confidential offering memorandum, which will qualify in its entirety the information set forth herein and which
should be read carefully prior to investment for a description of the merits and risks involved. An investment entails a high degree of risk and no assurance
can be given that the investment objective will be achieved or that investors will receive a return of their capital.

 

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