How You Can Help a Small Business
Capital invested in LEAF goes toward job creation in low income communities.
LEAF provides an opportunity for socially responsible investors to make a difference with their funds. Capital invested in LEAF becomes part of a pool available for reinvestment in new or emerging businesses.
LEAF accepts loans under the following terms:
- Increments of $5,000 and up
- Interest rates ranging from 0-4%
- Terms of two years or more.
LEAF also seeks investors who want to provide equity or grants to help build small businesses in low-income communities.
Grants to LEAF help in two ways:
- Grants provide LEAF with funds that can be used to make equity investments.
- Grants enable LEAF to hedge the risk inherent in lending to start-up businesses.
LEAF made its first equity investment in 1996 to a start-up company that has grown to employ over 100 people and would like to do more.
Since its founding in 1983, LEAF has always repaid investors on time. These key features of the fund help protect investors:
- A professional staff with extensive lending experience manages LEAF.
- A board of directors with legal, small business, and community development skills has final responsibility for loan approval.
- A conservative loss reserve policy.
- An ample, board-designated reserve for the protection of investors.
- Finally, the U.S. Treasury has certified LEAF as a Community Development Financial Institution (CDFI). This assures investors that capital invested in LEAF helps the organization carry out its mission of job creation for the benefit of low and low-to-moderate income people.