An investment with community impact, security, fixed-rate return

Roland Lemay in his new home

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Why banks invest in the New Hampshire Community Loan Fund

Community investment: Banks see the merit and impact of investments in their communities. By using the Community Loan Fund as an intermediary, banks further their reach to those individuals, businesses and nonprofits that would not normally qualify for a loan from a traditional lending institution.

Trusted financial intermediary: The Community Loan Fund has received the highest national honor in our field: the NEXT Award for Opportunity Finance. We have been rated multiple times by Aeris, the national rating service for community investing, which measures community impact and financial soundness.

CRA requirements: We accept traditional senior loans from banks under the lending test. We also offer a special class of community development debentures that will permit “equity-like” investments that facilitate greater impact on economically disadvantaged communities. These subordinated debt instruments help banks meet their investment and lending tests under the Community Reinvestment Act.

Social impact: Banks see an Opportunity NH Investments as an efficient and meaningful way of helping New Hampshire families with low and moderate incomes through the creation and preservation of housing, jobs and child care.

Lead sharing: The Community Loan Fund, by definition, makes loans to individuals and institutions that regulated financial institutions cannot. Banks often refer potential borrowers to the Community Loan Fund, and many of those borrowers later become “bankable”—and become customers of those banks.

In short, by investing in the Community Loan Fund, banks can get funds to worthy projects and customers in their communities today—and create potential future customers.

Choice of terms: If making a regular senior loan, banks can choose terms of one to 10-or-more years. All investors choose a fixed-rate annual simple interest return of up to 5%.

1 or 2 years3 or 4 years5 or 6 years7, 8 or 9 years10 years +
Up to 1%Up to 2%Up to 3%Up to 4%Up to 5%

* Rates for new investments or renewals are subject to change.

Risk: Opportunity NH Investments are unsecured. They are not insured by the FDIC, nor by any governmental or private entity. Opportunity NH Investments are not liquid assets: They cannot be redeemed or traded before maturity. While the Community Loan Fund has not lost any lender's funds, past performance is no guarantee of future performance.

Benefit: Your funds are added to our lending pool. The risk is shared, and an investor’s funds will not be dedicated to any single project or sector. Banks appreciate that the Community Loan Fund has an unblemished record of repayment to investors—through good and bad economic times. Opportunity NH Investments are protected by our significant permanent capital and our excellent history of repayment from borrowers.

Uncorrelated investment: Opportunity NH Investments are straightforward and uncorrelated to traditional fixed-income instruments. You will earn annual interest, and your principal remains whole, regardless of the ups and downs of the bond market.

A tradition of partnerships with New Hampshire banks: See our most-recent annual report for a full list of local and national financial institution investors. We also have investors from other categories, such as foundations, religious organizations, nonprofits, government and quasi-government organizations, and individuals.

Fixed maturity date: Your investment will have a fixed maturity date that can be renewed or paid out upon maturity, at your discretion.

Next steps: Please review our offering circular, which includes important information about the Community Loan Fund, and about the risk factors associated with making an Opportunity NH Investment. To discuss how your financial institution can invest in the Community Loan Fund, or if you have questions, please contact our Director of Investor Relations, Ken Kunhardt.

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