Greetings!
The fiscal crisis has created a strong need
for smart, flexible short-term loan capital among New York City's neighborhood
community development organizations, social enterprises and non-profits. Earlier this month, this concept was illustrated when we
received full repayment from WHEDCO's three-year bridge loan, and redeployed
that capital into a new two-year loan to a start-up CDFI called the Disability Opportunity Fund. A synopsis of this deal can be found in this newsletter's article, 'The Real Deal.'
The good news is that private investors and
foundations recognize this need, as was demonstrated by the overwhelming
response to our June 23rd group discussion, "Mission Related Investing: From Ideas to Implementation," co-hosted with the Association of Small Foundations. We plan to
build on the momentum by hosting a follow-up conversation in the fall, as well as convening prospective investors around specific investment
opportunities in New York City community development. You will receive details in September.
We actively reach out to community
investors because our mission is to facilitate the entry of new investors into
this marketplace. To do this, we regularly offer short-term notes to
accredited investors, and the next issuance date is coming up on September 15th. Please e-mail or call if you'd like to receive a Private Placement
Memorandum.
Overall, the neighborhood non-profit
marketplace in New York City is stressed. State-level fiscal
mismanagement contributes to this significantly. Fundamental economic
weakness, such as higher unemployment, persists. We have followed cases
of non-profit consolidation and retrenchment since the Wall Street financial
crisis, and we expect to see more. We plan to play a role in strengthening and stabilizing the organizations that are long-term survivors in
order to serve the people who are hardest hit by the recession. A new feature of our newsletter, 'On the Ground,' offers a firsthand look at the direct impact of one of our investments along with the realities of urban community development facing a neighborhood in the Bradhurst section of Harlem.
We hope
that you find this informative! For more good information check out our 'Newsworthy in the Neighborhood!' section and also follow us on Twitter @ContactFund to hear news and read articles relevant to the neighborhoods we serve and the topics we're interested in.
As always, we encourage inquiries and questions which can be directed to me at mark@contactfund.com or 212-209-1077. Best wishes for a wonderful rest of the summer.Regards, Mark Reed Founder, Contact Fund
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Newsworthy in the Neighborhood!
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