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People and organizations lend to the New Hampshire Community Loan Fund as a means of putting their money where their values are. They recognize that by simply lending part of their financial resources to us, they can enable families with low incomes to secure decent housing, child care, and jobs.
It’s a loan, for which the Community Loan Fund issues a
promissory note. We also refer to it as an investment because
it provides lenders with a “double
investment return”: both a financial return, and a community
return.
Yes. Lenders choose their own simple annual interest rate. For loans of 10 years or longer, you can choose an interest rate up to 5%. For loans of four to nine years, choose a rate up to 4%. For loans of two or three years, choose a rate up to 3%. A one-year loan will earn 2%. The lower the rate of return that you choose, the more dollars we have available for our borrowers.
Yes. The income is taxable as regular interest income on your federal and (if applicable) state return. Each January we send a form 1099-INT to all our lenders, informing them of the interest they earned in the previous year.
Over our 26 years the Community Loan Fund has an unblemished, 100% record of repayment
to its lenders. And we maintain significant equity reserves — that
is, permanent capital — so that in the event of a loss,
lenders’ money is protected. Lenders are duly advised,
however, that the Community Loan Fund is not FDIC- insured.
The minimum investment is $1,000. The minimum term is one year. Longer terms and larger amounts are most helpful for the types of loans we make to our borrowers.
Both donations and loans are vital. Like most nonprofits,
we need donations to sustain our work. Donations allow us to
meet our annual operating costs, and they allow us to build
our permanent capital. Meanwhile, loans fuel the work we do.
For some supporters, loans make sense; for others, donations;
for many, both!
Every loan matters! Hundreds of individual loans are aggregated to create the power that the Community Loan Fund has — the
power to help people transform their lives. And historically, every dollar loaned to us leverages $9.20 in impact in New Hampshire's communities. So whatever you can lend, or donate,
helps.
Most banks won’t or can’t make these loans.
We not only loan money, we provide the training and support
that allow people and organizations considered “unbankable” to
be successful. We are driven by our mission — helping people
to better their situations. Our borrowers are then frequently
able to access traditional loan dollars from banks after they
have successfully borrowed from us.
Just give us a call! Making a loan is a simple process. Fill
out a loan application indicating the amount, term, and
interest rate you want and return it to us with your check.
Upon receipt, we’ll send you a Loan Agreement to sign
and a Promissory Note containing our promise to repay the
loan to you. That’s
all there is to it.
Please contact Sally Hatch, Director of Investor Relations, at (603) 224-6669, ext. 226.
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