Impact investing is a powerful way for people to use their investment portfolio to benefit their community. Unlike traditional investment strategies, impact investments offer the potential for dual returns – positive, measurable community impact and financial returns.
In 2020, the Omaha Community Foundation launched the Community Loan Fund to make strategic, structured investments that address pressing needs in our community. To date, the Community Loan Fund has invested almost $2.5 million in the Omaha metro and Southwest Iowa communities.
“We use the money in the Community Loan Fund to make flexible, affordable loans to local nonprofits that assist small business owners or address the need for more affordable housing options in our community,” said Donna Kush, president & CEO of the Omaha Community Foundation.
The Community Foundation makes loans to local Community Development Financial Institutions, which are mission-driven financial institutions that provide financing, technical assistance, and training to underserved communities. Investees include the 712 Initiative, Canopy South, Grameen America, Midwest Housing Development Fund, Native360 Loan Fund, Nebraska Enterprise Fund, and Spark Capital.
The Nebraska Enterprise Fund, a nonprofit that provides vital financing to small and micro businesses, received a $400,000 investment in the form of a low-interest loan. In turn, the Nebraska Enterprise Fund makes small and micro-loans to entrepreneurs like Sheri Noordam. Noordam, owner of Naad’s Naturals, used the funding to expand her business and reach new markets, showcasing the tangible impact of strategic investments.
“I met with a representative from the Nebraska Enterprise Fund, showed them my plan, shared my dreams and even the things I was afraid of,” Noordam said. “Working with NEF was amazing. I worked with a loan officer who went to bat for me. She took my story to the credit committee and sold my story.”
There are two ways for investors to participate in the Community Loan Fund:
1. Make a donation. Anyone can support the Community Loan Fund with a donation.
2. Make an Investment: With a minimum investment of $25,000, OCF fundholders can invest money from their Donor Advised Fund, committing to a 7-year term. At the end of the term, the investment, plus interest less any losses, is allocated back to the Donor Advised Fund. This investment model not only fosters community growth but also allows for potential financial gains that can be redirected toward future grants into the community.
If you have questions about Impact Investing or how you or your clients can participate in the Community Loan Fund, please reach out to the Donor Services team at the Omaha Community Foundation. Contact Donor Services Advisor Wynter Davis at 402-933-4289 or wynter@omahafoundation.org
