Invest In Common Cents

Modeled on Eagle Market Streets Development Corp, CDC's Community Equity Fund, http://www.neighborhoodeconomics.org has launched Common Cents. It continues to address the problem of the lack of friends and family funding that keeps 90% of African American businesses as sole proprietors or very small businesses (four employees or less). Targeted loan funds don’t reach them, but CEF has discovered the right kind of capital for resilient sole proprietors ready to grow. CEF is unique in giving the business owner a two year grace period, coupled with highly effective technical assistance before they begin paying back the zero-interest philanthropic investment capital in month 25. These very small businesses, trending toward $100,000 in revenue, have to be able to pay back a fair revenue share.

In a partnership led by Eagle Market Streets and Neighborhood Economics, the fund, which has already raised more than $2 million and was included in the county’s budget for two consecutive years is now being opened to DAF investors through Common Cents. Common Cents will be investing zero interest loans in CEF’s sole proprietors. Donors can choose to invest in the fund building bridges across race, class and zip code and start to create the missing link for intergenerational wealth. The loans will start paying back in month 25 and pay back in full to the donor’s account where the money given can be reallocated to invest again.

For ongoing commentary and updates, visit this link: https://symbioticfund.wordpress.com/