Our investors understand that their VCLF investment is an unsecured loan, and isn’t FDIC-insured. They’re confident in our track record of intensive underwriting, responsible lending and able stewardship of invested dollars. But still, they always ask (and they should!): “What are you doing to protect my investment?” Here’s what we tell them:

The Loan Fund is 100% stock market-free.

Not one penny of your investment (or any of the Loan Fund's assets, for that matter) is invested in the stock market. Our cash accounts and our loan loss reserves are managed entirely in bank money market accounts and CDs.

And we’ll keep it that way.

VCLF does not package and/or sell the loans we make, so there’s no chance that a loan involving dollars you’ve invested with VCLF will end up on the open market.

We’re secure(d).

Every single VCLF loan is secured by borrower collateral, whether it’s real estate, business assets or personal assets.

We’ve repaid, 100% of the time.

With $110 million loaned over the past 33 years, VCLF has NEVER failed to repay an investor, on time, with interest, whether it’s $1,000 or $1 million.

We don’t do mortgage loans.

The packaging and selling of high-risk, subprime residential mortgages triggered the onset of the Great Recession. VCLF doesn’t make mortgage loans; our housing program lends to nonprofit housing developers who build or rehabilitate affordable homes for rental or ownership.

The loan closing is just the beginning.

We work very closely with our borrowers every step of the way, regularly reviewing financials, discussing opportunities and identifying challenges before they become problems. These active, working partnerships are key to our borrowers’ success, and their ability to repay their VCLF loan. We’re a responsible lender, because we’re a responsive lender.

We’ll protect your money like it’s our own.

The Loan Fund currently manages about $13 million in permanent equity, the first funds affected in the event of a loss to one of our loans. We keep far more equity on-hand than a traditional financial institution. Our debt-to-equity ratio is currently 2.5:1. Larger banks typically run at three times that or more, around a 10:1 ratio.

We’ve been Aeris-rated.

Aeris (formerly CARS, the CDFI Assessment & Rating System) provides a comprehensive credit analysis and investment rating service for organizations like the Loan Fund, similar to what Standard & Poor's provides for traditional credit markets. Aeris provides analysis around a CDFI's financial strength, social impact strategies and role in public policy.

Needless to say, our investors make our work possible.

We make every effort and take every precaution to protect the assets you’ve entrusted to us. VCLF impact investors want your money to have meaning, to work for the common good, to do more. You want investments with value AND values. The connection that VCLF facilitates between our investors, your values and your community is a very special thing. Our work is yours. We couldn’t be more grateful.

CLICK HERE to download everything you'll need to invest with the Vermont Community Loan Fund.