Press Release: Capital Good Fund Launches Groundbreaking $4.25 Million Debt Offering

Capital Good Fund Launches Groundbreaking $4.25 Million Debt Offering
Pioneering social enterprise aims to create 60 jobs and change 17,000 lives over five years 

Providence, RI—Capital Good Fund, a Providence-based nonprofit social change organization that provides equitable financial services—small personal loans and Financial Coaching—to create pathways out of poverty, has launched a first-of-its-kind $4.25 million Direct Public Offering.

Instead of making a donation, social investors can earn up to 5 percent and invest as little as $1,000. Investors can be accredited or non-accredited individuals and institutions in 15 states including Rhode Island, Massachusetts, and New York.

“By offering social investors financial as well as social returns, Capital Good Fund is creating a new model for change,” said Founder and CEO Andy Posner. “Large-scale problems require large-scale solutions, but nonprofits often lack the resources to meet these challenges. Where philanthropic funding often amounts to a zero-sum game between nonprofits, the capital markets give us access to a global source of funds with which to grow.”

Capital Good Fund provides financial services to those that would normally only have access to capital through fringe and predatory lenders such as payday lenders, pawn shops, auto title lenders, and other subprime lenders who charge poor families upwards of 200% APR.

With $4.25 million in funds, Capital Good Fund will take a big step towards fulfilling its social mission. The organization plans to create 60 jobs and make17,000 loans in the next five years; this, in turn, will enable them to generate 100 percent of its budget from interest income.

“Capital Good Fund’s debt offering represents an exciting new model for how nonprofits can scale through earned-income strategies,” General Treasurer Seth Magaziner said. “For the past six years, Capital Good Fund has used financial services to serve Rhode Islanders. Now, they are blazing a trail for social enterprises throughout the nation to strengthen their finances and better serve their communities.”

In the first few weeks of the Offering a total of $120,000 has been committed, including $100,000 from Alan Hassenfeld, former CEO of Hasbro Toys.

"I am excited that Capital Good Fund is using this powerful new tool for reaching the less fortunate," said Alan Hassenfeld, President of the Hassenfeld Family Foundation. "I'm proud to invest $100,000 in this debt offering so that thousands of families will have the tools they need to take care of their families."

For more information:

Investors can learn more by visiting the website of Social Capital Fund, Capital Good Fund’s sister nonprofit and debt issuer, at www.socialcapitalfund.org or by contacting Andy Posner, Founder & CEO, via the info here.

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Founded in 2009, Capital Good Fund is a nonprofit, certified Community Development Financial Institution (CDFI) and proud member of the Opportunity Finance Network. The organization provides Financial & Health Coaching and personal loans ranging from $300 to $13,500 across four product lines. Since its founding, Capital Good Fund has disbursed 950 loans totaling $900,000 (with a 92% repayment rate) and graduated 1,000 people through its Coaching programs.