PROVIDENCE – The Capital Good Fund will have an extra half-million dollars to make loans to individuals who have been impacted by the COVID-19 pandemic, courtesy of the Rhode Island Foundation.
The two nonprofits jointly announced Wednesday that the Capital Good Fund received a $500,000, five-year loan from the Rhode Island Foundation. The fund will use the monies to make “below-market, short-term loans” to consumers who do not qualify for conventional financing for expenses related to the current ongoing pandemic and other needs, including buying a car or security deposits.
The loan provided by the foundation will help Capital Good Fund assist an additional 250 borrowers and offer personal loans ranging from $300 to $25,000, with an average interest rate of 14%.
“Making loans and direct investments from our endowment enables this impact investing to align our financial investments with our mission,” Rhode Island Foundation CEO and President Neil D. Steinberg said in a statement. “Investing directly from our endowment gives us the flexibility to support the work of our nonprofit partners in a way that supplements our grant programs.”
Capital Good Fund Founder and CEO Andy Posner said in a statement that the investment from the Rhode Island Foundation will help the organization achieve its strategic goals, “including increasing the number of Rhode Island families impacted by our products.”
“Our clients are people who can’t access mainstream loan products for a variety of reasons, ranging from being low-income, having poor credit or simply not trusting the financial system,” Posner said.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
