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MAY 2012 UPDATE
Mark Reed, Contact Fund Founder 
    Successful Senior Note Raise Supports New Loans
 Project Renewal and Bronx Shepherds Restoration Corporation are the two newest additions to Contact Fund's loan portfolio. Three more loans were approved in May by our Credit Committee - in the Bronx, Queens and Brooklyn. These three new loan proposals represent the progression of our $2mm pipeline that will enable New York City's nonprofits to leverage other funds and launch business plans to empower their neighborhoods. We will keep you posted as these loans close over the summer.

 

For additional information:
 jennifer@contactfund.com or
 (212) 209-3826

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Greetings!
 

Following a very busy Winter/Spring, I am pleased to be back with a brief update on our recent capital raising and portfolio activity.

 

We closed our March Senior Note Raise with over $600,000 in capital from 10 new investors and 6 increased existing investors. We combined this new capital with the proceeds of loans repaid by LISC, Lower East Side People's Credit Union, and Disability Opportunity Fund to make two new housing-related loans in the Bronx.  

 

One is a construction loan to Project Renewal for the purchase of a facility in the Bronx that will be turned into a much-needed 108-bed homeless shelter to house and assist homeless men through a 20-year contract with the NYC Department of Homeless Services.  

 

Our predevelopment loan to Bronx Shepherds Restoration Corporation for a mixed-use development in the South Bronx will be used to create 71 units of affordable housing targeted for children aging-out-of-foster care and low-income elders with their grandchildren. The housing will be complemented by 10,000 sq. ft. of community space and 6,000 sq. ft. of retail space - all on vacant property the organization acquired in 2007.

 

These loans expand our footprint in the Bronx and bring our total loan portfolio to nine. Thank you for your continued interest as we accelerate  loan activity and scale the Contact Fund model.

 

For more information about Contact Fund or to share comments and questions feel free to reach out to me or Managing Director, Jen Trepinski.

 

Sincerely,

 

Mark Reed - Founder

More Than A Loan

Our $400,000 loan to Project Renewal played a unique subordinated equity role and leveraged $10.2mm of Chase's senior construction lending, enabling the project to get off the ground.  It also strengthened Project Renewal's balance sheet and long-term financial health. This aspect of organizational development and financial sustainability is a vital component of the Contact Fund model and is of particular interest to a growing segment of human service providers.

P.S.  Contact Fund's project prominently featured!
Fire escape photo
A recent report published by Arabella Advisors features our work in Brooklyn to revitalize brownfield sites.  Our loan to Fifth Avenue Committee will transform a former industrial site into a green development with affordable housing.  Click here to view the full report.
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