Our investors understand that their VCLF investment is an unsecured loan, and isn’t FDIC-insured. They’re confident in our track record of intensive underwriting, responsible lending and able stewardship of invested dollars. But still, they always ask (and they should!): “What are you doing to protect my investment?” Here’s what we tell them:

The Loan Fund is 100% stock market-free.

Not one penny of your investment (or any of the Loan Fund's assets) is invested in the stock market. Our cash reserves are managed entirely in bank accounts & instruments, bonds and treasuries. VCLF has invested a small portion (<3%) of our own equity capital/endowment in Fresh Tracks Capital’s Green Mountain Fund, which invests in Vermont-based growth-stage companies to accelerate further growth, scale and mission impacts.

And we’ll keep it that way.

VCLF does not package and/or sell the loans we make, so there’s no chance that a loan involving dollars you’ve invested with VCLF will end up on the open market.

We’re secure(d).

Every single VCLF loan is secured by borrower collateral (real estate, business and/or personal assets) or, in the case of the Justice Forward Fund, guaranteed by grants & private philanthropy.

We’ve repaid, 100% of the time.

VCLF has NEVER failed to repay an investor, on time, with interest, as promised, whether it’s $1,000 or $1 million.

We don’t do mortgage loans.

The packaging and selling of high-risk, subprime residential mortgages triggered our most recent major recession. VCLF doesn’t make mortgage loans; we lend to nonprofit developers who build or rehabilitate affordable homes for rental or ownership, and to for-profit developers with an affordable housing component to their mixed-use/-income project.

The loan closing is just the beginning.

We work very closely with our borrowers every step of the way, regularly reviewing financials, discussing opportunities and identifying challenges before they become problems. These active, working partnerships are key to our borrowers’ success, and their ability to repay their VCLF loan. We’re a responsible lender, because we’re a responsive lender.

We’ll protect your money like it’s our own.

The Loan Fund currently manages about $17.1 million in permanent equity, the first funds affected in the event of a loss to one of our loans. We keep far more equity on-hand than a traditional financial institution. Our debt-to-equity ratio is currently 2:1. Larger banks typically run at three times that or more, around a 10:1 ratio.

Needless to say, our investors make our work possible.

We make every effort and take every precaution to protect the assets you’ve entrusted to us. VCLF impact investors want your money to have meaning, to work for the common good, to do more. You want investments with value AND values. The connection that VCLF facilitates between our investors, your values and your community is a very special thing. Our work is yours. We couldn’t be more grateful.

CLICK HERE to download everything you'll need to invest with the Vermont Community Loan Fund.