The Fund seeks to provide current income that is consistent with the returns available in adjustable-rate, government guaranteed financial products by investing in Community Development Loans guaranteed by the Small Business Administration (SBA). Community Development Loans are loans to small businesses located in Low and Moderate Income areas or that employ Low and Moderate Income persons.
Investment in the Fund can be counted for either Community Development Lending Test or Investment Test credit within the CRA. As of June 30, 2023, the Fund had over $777 million of gross assets and over 120 funded investors.
SBA Loan Fund Investors
- Financial institutions seeking targeted Community Reinvestment Act (CRA) Community Development credit
- Financial institutions and other institutions seeking risk-adjusted returns for investing in a diversified pool of government guaranteed securities
- Rated Aaa-bf by Moody’s Investor Services, highest possible credit quality rating
- Impact Management Assessment Certified by Aeris
The Fund is rated Aaa-bf (“triple A bond fund”) by Moody’s Investor Services, the highest possible credit quality rating. The Fund primarily invests in the federally guaranteed portion of SBA 7(a) loans that adjust quarterly or monthly and are indexed to the Prime Rate.
The SBA Loan Fund is only available for qualified institutional buyers or accredited investors.