The Capital Impact Note enables individuals and organizations to invest in underserved communities nationwide. With a 35-year track record, Capital Impact Partners funds access to critical social services, including health care, education, affordable housing, and healthy foods. And at the same time, the note provides a competitive quarterly yield.
Who's behind the note?
Capital Impact Partners is a nonprofit Community Development Financial Institution (CDFI) that supports underserved communities. Since 1982, the organization has deployed more than $2.5 billion in community development, real estate lending, training and mentorship programs, and investments in social impact businesses.
In mid-2022, Capital Impact Partners merged with CDC Small Business Finance and Ventures Lending Technologies to create Momentus Capital. While each organization will continue operating independently, the combination leverages economies of scale to provide additional resources and support more product offerings.
Unlike many impact offerings, Capital Impact Partners is S&P rated with an A and a positive outlook. Investors can access the S&P credit rating on the organization's website. The A rating provides an extra reassurance that the organization is in excellent financial condition and the risk of default is extremely low.
Why invest in the note?
The Capital Impact Note is a $150 million total offering with competitive fixed interest rates and terms of up to 20 years. With a $1,000 minimum investment, anyone can invest in the note through a financial advisor or brokerage account. On a rolling basis, the firm issues a new pricing supplement with a CUSIP number, coupon rate, and term.
The easiest way to purchase the note is to contact a financial advisor and provide the pricing supplement (and the CUSIP in particular). In addition, many brokerages have a CUSIP-based look-up function or support telephone orders for these trades. Investors should remember that these notes may have little to no liquidity.
Aside from its financial attributes, investors can read impact stories on the organization's website to understand where and how their capital is making a difference. For example, the impact note provided a $3.7 million construction loan and guidance to help stabilize a Detroit-based affordable housing project, serving as a lender and partner.
The bottom line
Capital Impact's Capital Impact Note is an excellent way to build stronger communities and earn an attractive return. With a $1,000 minimum and the ability to purchase through a brokerage account, it's easy to get started, and there's no accreditation red tape.