Lending Programs must address these three areas:
Access:
Increase access to capital for communities historically excluded from and extracted from the financial system.
Affordability:
Increase affordability of capital for communities historically excluded from and extracted from the financial system.
Power Shifts:
Build power, choice, and ownership in and for communities adversely impacted by economic and racial injustice.
Underlying Loan Parameters:
Geographic Remit:
United States, State Restrictions Apply.
Type of Loans:
Commercial (Small Business/ Nonprofit) Loans.
Sectors:
Agnostic.
Single Loan Maximum:
$250,000.00
Allowable Entities:
Corporations, LLCs, Co-Ops.
Interest Rate Range:
0-3%.
Possible Loan Terms:
Loan Structures
- Installment loan—with deferral period + straight line amortization.
- Installment loan without deferral period with straight line amortization.
- Balloon Payment (fixed lump sum 100% payment).
Interest
- For installment or balloon loans: 0%; or Interest can be accrued on outstanding balance.
Interest Payment Frequency
- With principal (no interest only payments).
Fees
- N/A
Repayment Frequency
- Monthly;
- Quarterly;
- Bi-annual;
- Annual;
- Balloon payment
Repayment Amount
- Total principal + interest (if applicable).
Lending Program Offerings:
Lending Program Design
Co-creating lending program concept, underwriting criteria, and structure with the lending partner.
Loan Management
Back office end-to-end loan management from origination to servicing. Compliance management and transparent borrower support.
Reporting and Analysis
Credit reporting to major credit bureaus, data analytics, and standardize partner, investor, and donor reporting.
Lending Program Timelines:
1-2 Months:
Opportunity Screen: Lending Partner identifies gap in accessible/affordable credit in community and engages Common Future to identify potential lending program to design.
1-3 Months
Lending Program Design: With support from Common Future, Lending Partner designs Lending Program to determine: program remit, structure, qualification criteria and process to center Lending Partner’s community.
1-2 Months
Formalize Partnership: Common Future brings Lending Program to Partnerships Committee for approval and Common Future and the Lending Partner clarify expectations and finalize an agreement.
Flexible
Implementation: Lending Partner refers loans to Common Future. Common Future services loans and provides reporting on performance
About You
We work with community rooted organizations that provide direct and comprehensive services to businesses. Lending partners have deep relationships with the individuals and/or businesses they support and an understanding of local and historical financial barriers.
Our Current Partners Include:
ConnectUP! Institute
Providing Black, Brown and Rural founders capital, capacity and community to 'next' stage businesses across Minnesota.
Equitable Food Oriented Development: EFOD
The EFOD Collaborative is a multiracial coalition of community-anchored food systems practitioners and leaders driving food-oriented development as vehicles for shared power, cultural expression, and community asset-building.
Mortar Cincinnati
MORTAR builds diverse communities by providing Black entrepreneurs with access to the tools and resources they need to start and run a business successfully.
Native Women Lead
Native Women dedicated to revolutionizing systems and inspiring innovation by investing in Native women in business and leadership.
Interested in designing a Lending Program or Fund?