Invest in CFNE

Why Inv​est in CFNE?

Since 1975, the Cooperative Fund of New England has provided over $50.4 million in crucial, affordable financing to cooperatives and nonprofits across New England and eastern New York State. Not only have these funds created and retained thousands of jobs and housing units, often in underserved communities, but they have strengthened the user-owned, green cooperative economy.

New England has a strong and growing cooperative economy.  As of 2017 CFNE's loans have gone to over 900  borrowers in the region, resulting in creating or retaining jobs for over 10,000 people.

But many of these coops struggle to access credit needed to start-up new coops and expand existing ones. As the only financial institution dedicated to growing the region’s cooperative economy, CFNE fills an important niche in attempts to humanize the economy.

We rely on community support to make this happen. The vast majority of our loan pool comes from individuals, cooperatives and community and religious organizations. If you have at least $1,000 available to lend to CFNE for a period of at least one year, consider making that investment in cooperative development. You choose the interest rate, from 0-2%, and whether we repay the loan at a fixed point in time or upon your notification. If you are a cooperative considering lending to CFNE, see our Invest in Coops page. For any individual or institution considering lending, please click on our Investment Terms link to the left and call our office (1-800-818-7833) to request a password to the prospectus and discuss if this type of loan is right for your risk tolerance and financial situation. Click here for Prospectus.

In short, by lending to CFNE, you can:

Additionally, CFNE welcomes donations. We run our operation on the margin of our loans - the difference between the interest we owe investors and the interest we earn from borrowers. Because of that, your donations serve either as permanent capital in the fund, which we can leverage to borrow more funds, or to expand our lending and technical assistance program. To make a donation, click on the Donate button in the top right hand corner of your screen.

To make a donation,    now.

Microsoft Office document icon CFNE prospectus response form in word25.5 KB
PDF icon cfne_prospectus_for_2018_v1.pdf1.23 MB

Social Investment Loan Terms

For detailed information about CFNE’s Social Investment Loan product, please contact us to request a prospectus and discuss if our Fund meets your needs: 1-800-818-7833.

Social investment loans to the Cooperative Fund are provided on terms chosen by the investor within a range of options including:

Amounts:         $1,000 - $1,000,000
Investment:     Unsecured Loan, Promissory Note
Term:                One year minimum; no maximum
Rate:                  Zero to 2% simple interest. 


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.



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. 


Tax Implications

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.


Promissory Note

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.


Third Party Rating

CFNE has been well rated by the CARS tm independent outside review process.

Who Invests in CFNE

Please see our 2016 Annual Report for a complete list of institutional investors as of 12/31/2016. The following chart depicts the CFNE investor mix:


Investor Testimonies

CFNE has always had strong support from the faith-based community and socially responsible investment sector. Individuals account for nearly one-fourth of the investor mix. Increasingly, cooperatives themselves are becoming CFNE investors as well as borrowers. Read below to hear, in the words of our supporters, why individuals and institutions invest in CFNE.

Coop investors in CFNE include Hunger Mountain Food Coop, Community Builders, and City Market/Onion River Coop.

"Our End is to strengthen and support the cooperative movement by working together. When we relocated seven years ago, we desperately needed support and our coop neighbors generously provided it. We’re grateful to now be in a position to help other coops."

—Clem Nilan, General Manager. City Market/Onion River Coop

"As one of the older worker cooperatives in New England, we are delighted to be able to invest in the future of the movement by supporting the great work of the Cooperative Fund of New England."

—The worker/owners at Community Builders Cooperative 

"CFNE took on the hard part of the market…and succeeded in meeting the needs of borrowers while also providing investors with a reasonable rate of interest and a leveraged social impact. That's pretty exciting!"

—Amy Domini, Domini Social Investments, LLC

"Cooperatives [are] an economic model that promotes value not just externally but internally... So we fund CFNE and they fund the Coop.”

—Corinne Florek, Mercy Partnership Fund

One thing bothered Marian Coulter when the Boston-area resident inherited a large sum of money from her grandmother in the early 1996. Her inheritance... was invested in energy conglomerates and companies that she "strongly disapproved of". Click here to learn how she solved the problem.


Self Directed IRA

It may be possible to self direct an IRA to the Cooperative Fund. Directions to do so are described in these instructions to self direct an IRA to CFNE.

In order to direct IRA funds to CFNE you can use the services of Strata Trust Company. An investor needs to open an account with Strata and then direct Strata to send funds to CFNE. See the linked document above for detailed instructions.