Terms of Social Investment Loans

For more information, click here to download the CFNE Prospectus in PDF format. Please note that the prospectus contains an Investor Response Form. Contact us to see if our Fund meets your needs 800-818-7833.

Social investment loans to the Cooperative Fund are provided on terms chosen by the investor within a range of options. The interest rate may vary between zero and three percent. The social investor may also designate whether the interest will accumulate with principal or be paid out on a quarterly basis. Repayment may be set at either a fixed or indefinite term. 

Click here to read about investing in cooperatives

Click here to see a list of CFNE supporters and investors in PDF format
Click here to read about our investor Equal Exchange
Click here to read about our investor Episcopal Diocese of Connecticut

Click here to read about our investor Pedal People

Click here to read about investors Berkshire Market and Onion River

The Fund encourages long-term investment. Social investment loans, however, may be called for repayment within a short period of time. For those that are particularly large, the Fund asks that repayment be limited to five thousand-dollar increments within each 30-day period after it receives notice of withdrawal.

CFNE has been well rated by the Opportunity Finance Network CARS ^tm  independent outside review process.

Social investment loans are not insured in any way or collateralized through secured interests in any property of the Fund. They rest only on the general credit of the Cooperative Fund of New England. Social investment loans are, however provided with a significant-albeit unusual-measure of security. Several social investors, cooperative organizations included, have agreed to designate their funds as the first to assume losses that would otherwise prevent full repayment to other investors. 

The following is a chart depicting the CFNE investor mix at 12-31-2010: 

Social investment loans made directly to the Cooperative Fund are not tax deductible nor are they included in the income of the investor when they are repaid. Any accrued interest, whether paid out or left to accumulate with principal, is fully taxable to the social investor. An IRS 1099 form is sent out at the end of each year. A social investment loan may, however, be rendered tax deductible when it is provided indirectly through a self-directed individual retirement account with a bank providing such a service. Under this option, funds are deposited with the participating bank and then self-directed for investment in the Cooperative Fund of New England. Funds on deposit in the IRA account may not be prematurely withdrawn without substantial penalty. They may, however, be removed from the Cooperative Fund and redirected elsewhere. Persons desiring to use this tax benefit are advised to obtain further information regarding the restrictions and dollar limitations that apply to the use of this procedure.

Funds remitted to the Cooperative Fund will be acknowledged by a promissory note with the terms chosen by the social investor. Under this note the Fund is obligated to provide financial statements and reports on its activities at least three times a year. The specimen promissory note in Appendix D of the prospectus provides full information as to warranties and obligations assumed by the Fund in its relationship with a social investor.

Green America's Community Investing Guide cites CFNE as a community investment opportunity. To download the guide click here.

CARS rated