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Equity Trust Fund- A Vehicle for Responsible Investment Introduction to the Equity Trust Fund Here's How It Works Investment Opportunities Terms for Investors Loan Offer What Our Lenders and Borrowers Have to Say Also of interest: The Student Investment Handbook Recently Funded Projects Introduction If change is to come, then, it will have to come from the outside. It will have to come from the margins. - Wendell Berry Before starting the Equity Trust Fund, founder Chuck Matthei spent years seeding and cultivating a number of experimental loan funds that could provide financing for community development projects. He took the lead in bringing together an assortment of these loan funds to form a national association, now the Opportunity Finance Network, which has gone on to build and support a strong set of well-capitalized community development financial institutions. In 1991, wanting to create a loan fund that would return to the roots of this innovation, Chuck decided to create the Equity Trust Fund. Rather than establishing another fund that would finance typical community development, Chuck wished to create a loan fund that would support the work of grassroots groups trying out new ideas and pioneering creative models. Chuck wanted to help nourish new possibilities-particularly new possibilities relating to the control, use and stewardship of property. But where do you find the people and projects that can open up these new possibilities? They are certainly not to be found within the status quo. They are to be found, as Wendell Berry says, on the margins. The Equity Trust Fund has succeeded in finding and supporting many such people and projects-from Maine to California, from Georgia to the Mexican border. Since 1991, Equity Trust has helped hundreds of groups to protect small farms, create affordable housing, secure low-income access to quality food, obtain critical financing, and reinvest capital responsibly. Here's How It Works  The
Equity Trust Fund receives loans and gifts from socially and environmentally
concerned investors. These investments are used as a revolving loan fund
to make loans across the United States and in Central America. There are
at present 47 investors who together have a total of $748,910 loaned into
the fund. In addition, over 40% of the Equity Trust Fund is equity-capital
that permanently belongs to the Fund. We currently have $775,389 loaned
out of the Fund to 21 different Borrowers. These loans to our borrowers
range in size from $6,000 to $150,000. The Fund is incredibly sound by design because it was created to provide loans to "high-risk" borrowers-low-income, grassroots groups in need of capital to get their projects off the ground. With over 40% of its capital being equity, the Fund has a huge cushion with which to repay its investors should any borrowers fail to repay. All borrowers are selected carefully in an application process that involves both Equity Trust staff and the Equity Trust Fund Committee. Not only have the Equity Trust Fund's investors never been asked to take a loss, but the "high-risk" borrowers chosen by Equity Trust have generated an almost nonexistent default rate (less than 1/3 of one percent). Our borrowers-these farmers, community land trusts, organizations creating soup kitchens, craft collectives and affordable housing-pay back their loans in full. We Work Closely With Our Borrowers  In
addition to financial help, Equity Trust is able to provide our borrowers
with technical assistance as needed. Our experience has taught us that when
given both of these tools, small community-driven groups can grow into powerful
vehicles for social and environmental justice. Our Work Is Grounded In Our Values We believe that poverty is not simply a lack of income but, more fundamentally, the result of market forces and patterns of absentee ownership that drain assets and earnings out of low-income communities. In fact, although we are often unaware of it, low-income communities generate significant earnings, and are rich in ideas, practical skills, and other non-monetary resources. Gaining community ownership over resources that are vital to the people who live there (like land, food, and housing) is critical to breaking the cycle of poverty. While absentee ownership drains assets and earnings out of an area, community ownership retains those assets and earnings. When a community's human resources and capital can be retained, built upon, and recycled locally, suddenly the strength of the community's capacity becomes clear, and sustainable change becomes possible. The Equity Trust Fund helps communities gain ownership interests in the food, land, and housing they use. We work with people to make economic changes that balance the needs of individuals with the needs of the community, the earth, and future generations. Any individual or institution may participate in the Fund by making a loan, land gift, or capital contribution. By making changes in their own economic lives, Equity Trust participants provide critical assistance to those who are excluded from conventional markets. Moreover, their commitment gives practical form to basic philosophical principles. . |
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Investment Information for Potential
Lenders We invite you to join us in providing low-interest loans to organizations engaged in environmental preservation, economic justice work, and sustainable community development. LOANS…made on flexible terms set by you, the investor. You choose the amount, time, rate, and repayment schedule, within parameters set by the Fund, and you may even indicate preferences regarding the use of your funds. If you would like to make a loan, you can read our Terms for Investors and send us a Loan Offer or call our office for more information. A staff person will discuss options with you and answer any questions that you may have. LAND GIFTS…of present or future interests in real estate of any kind. We'll arrange for local stewardship to maintain the property for appropriate charitable or conservation purposes. If that is not possible, the equity will be used to achieve similar goals in your own or other communities. If you are interested in making gift of land, you can call our office and discuss your idea with a staff person here. CAPITAL CONTRIBUTIONS…your donation will increase the Equity Trust Fund's capacity to make low-interest loans to groups working across the country. Capital contributions, made payable to "The Equity Trust Fund" can be mailed to: Equity Trust, Inc. P.O. Box 746 Turners Falls, MA 01376 Or call our office to discuss payment options. (413) 863-9038. EQUITY PLEDGES…promising to donate upon sale a designated percentage of any "social appreciation" in your property value. You choose the percentage, from 1 to 100%. The pledge itself is an important statement, but no contribution is required until the property is sold. The gift comes from the increase in value above the amount of your own investment in the property. If you are interested in making an equity pledge, please call, write or email, and we will send you a packet of information, and discuss your questions about this program. Our main office number is (413) 863-9038. Please feel free to call. We all really enjoy sharing the work of the Equity Trust Fund. What Our Borrowers Have to Say "We possessed the vision but, through many years of community organizing, there was a need for professional counsel and support. Equity Trust and our legal advisors have aided us tremendously. Equity Trust, as consultant, has helped us to make positive decisions and have provided a loan for the successful construction of a community center. The willingness of Equity Trust to help finance the purchase of this land provides a source of confidence for us. Our mission of cultural preservation, land retention and economic development is beginning to seem more of a reality. God Bless!" -Carolyn Dowse Executive Director, SICARS "Southside Community Land Trust has worked with The Equity Trust since our formation in 1981 in creating a model land trust to serve urban areas. Since that time, we have depended on The Equity Trust for assistance in every aspect of our growth. We have benefited from their sage advice, we have utilized their facilities for organizational retreats, we have financed the purchase of properties through their loan program, and we have been the recipient of grants needed to better fulfill our mission. While we have certainly enjoyed the monetary aspects of our relationship with the Equity Trust, it is the concern, wisdom, and moral support we have received that we most value." -Jane Jellison Executive Director of Southside Community Land Trust What Our Lenders Have to Say "I want my savings shared to support the capital needs of community supported agriculture projects and low income cooperative housing, rather than to finance profit-making opportunities for banks and mainstream corporations." -Karl Meyer, Equity Trust Fund Investor--Nashville, TN "While land is becoming more and more expensive and the gap between the financially wealthy and everyone else is growing, it feels great to be supporting the work of Equity Trust. Their commitment to values of equality and justice really comes through in their creative land tenure work. Knowing that through long term lending to Equity Trust, I'm supporting dedicated farmers to stay on their land and contribute to a more just food system is particularly exciting to me." -Leslie Goldstein, Equity Trust Fund Investor--Sunderland, MA "I love the idea of helping to make local ownership a barrier against gentrification and 'redevelopment.' Too often people and projects that have worked so hard to make fragile neighborhoods better are forced out just when areas are coming back to life. If I can help keep speculative land-ownership from preying on vulnerable communities, I'm thrilled to be a part of that!" -Bruce Triggs, Equity Trust Investor-Vancouver
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