Protecting Your Investment
Is my investment safe?
Investments with VCLF are considered unsecured loans and are not FDIC insured. However, our investors are confident in our track record of intensive underwriting, responsible lending, and able stewardship of invested dollars.
We make every effort and take every precaution to protect the assets you entrust to us. VCLF impact investors want their money to have meaning, to work for the common good, and to do more. You want investments with value and values. The connection that VCLF facilitates between our investors, their values and their communities is a very special thing.
We protect your money like its our own
Not one penny of your investment (or any of the our assets) is invested in the stock market. Our cash reserves are managed entirely in bank accounts and instruments, bonds and treasuries.
We also do not package or sell the loans we make, preventing any chance of your investment dollars with us ending up on the open market.
❋ We’re 100% stock market-free
Every single VCLF loan is secured by borrower collateral (such as real estate, business, and/or personal assets) or, in the case of the Justice Forward Fund, guaranteed by grants and private philanthropy.
❋ Our loans are secured
❋ 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.
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.
❋ We maintain permanent equity
We work 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 responsive lender
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 projects.
❋ We don’t do mortgage loans
If you're interested in impact investing, have questions, or just want to learn more, fill out this form and we’ll be in touch soon!
Get In Touch
Jake Ide
Director of Investment & Philanthropy
Liz Touchstone
Impact Investment Manager
