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The Saint John Community Loan Fund is built on investments made by socially responsible individuals and groups living in Saint John, as well as by friends living outside of Saint John. They want their investment dollars to circulate in Saint John – building opportunities here, for people here.
No other investment vehicle exists in Saint John, in which 100% of your money works here! The Loan Fund converts your investment to loans to help people in our community start businesses, get back to work, or secure housing. Loans go to people who live in our community who have good ideas, and the desire to get ahead, but who don’t have the income, assets, security, or credit history to get a loan elsewhere.
You choose the financial return for your investment – up to 3% or the Loan Fund will match any bond rate. Of course, the more significant return is much broader – it is seeing your money help grow businesses and opportunities in Saint John
Protecting Your Investment
The Loan Fund knows that your money is limited so we make every effort to diminish your risk. After all, your risk is ours. If you lose money, we lose money. To diminish risk the Loan Fund does three things:
- Reserve. Like banks and credit unions, we set aside a reserve to cover losses. In the banking industry they set aside a maximum of 5%. We set aside a pool of money equivalent to 30% of any loans active on the street, so if there is $50,000 on the street, we have $15,000 dedicated to covering losses. We do that so you don’t lose.
- Support to borrowers. Besides providing loans, we work with our borrowers on a monthly basis, meeting often to develop marketing strategies or to review their household budgets. When borrowers walk out the door, we tag along for the duration of the loan.
- Security. Though our loans are small, we still try to secure each loan with real or personal property.
How Much Can I Invest and for How Long?
Anyone can invest, and can invest with as little as $250. All we ask is that your investment is committed for a term of two years or more, so that the money has a chance of revolving in the community. You also have the choice of directing your investment for either housing or business and work . Its up to you.
If you are interested in joining our community of investors you can call us directly and speak with Seth Asimakos, our Manager, or you can download the Expression of Interest in Investing form, complete it and return it by mail. We will then setup a meeting with you to finalize an agreement. Its that simple. Join us in making a better Saint John for all.
Donating to the Loan Fund
Not everyone wants to be an investor and sometimes a donation can actually provide a better return to you with the tax credit. The Saint John Community Loan Fund is a registered charity and can provide you with a charitable receipt for any donation that helps us help others in the community.
Like investments, donations can be directed to different activities; to general operations; to any of the loan pools; or to the loan loss reserve, where a donation leverages at least three times its value in loans. You can download the Expression of Interest to Donate form, complete it, and return it with a cheque, or you can call us to meet and provide more information. Any donations will receive their charitable receipt within two weeks.