CASCADIA REVOLVING FUND
(submitted to SCN by Bob Derry, Cascadia Revolving Fund several years ago)A unique opportunity for individuals and organizations to take part in community economic development through their investments.
Cascadia's Global Vision = Local Action - Equal rights for women, minorities and those with a lower income, assistance for environmentally supportive technologies, individual and community empowerment, -- all of these goals are part of Cascadia's vision of a better, more equitable world. Yet, what makes Cascadia unique is the route we take to realize this global vision: local action.
By charter, Cascadia directs its lending activities to our local region. This means that the millions loanded over the years has all gone directly to grass roots business expansion and the creation of new jobs for local organizations which embrace some aspect of this world vision.
There's more at stake here than improved profit margins and new jobs for any one business. All of Cascadia's borrowers offer services and products or uphold ideals which make an impact on both the community and, in turn, the world. Case in Point: A loan to a Seattle-based women's publishing house helped finance the publication of a book on domestic abuse which went on to become a bestseller with over 100,000 in print and four foreign editions. Not only could the publishing house stay in business and become a vital member of Seattle's publishing community, but it also offered women around the world an important resource on breaking free from abusive relationships. That's a powerful example of how global vision combined with local action can produce global change.
In 1994 Cascadia began a major lending program for pollution prevention. This loan program funds technologies that enables small businesses such as automobile repair shops, photo finishers, dry cleaners, printers and machine shops to reduce the production of hazardous waste. In the past, pollution control focused on the management of the pollution once it was produced: this program focuses on elimination of pollution at its source.
A Helping Hand -- Not a Hand Out - Aside from having certain social goals in common, Cascadia borrowers also share one key attribute: they are sustainable businesses which show a capacity or willingness to become economically independent. In order to make sure that loans become helping hands -- and not handouts -- Cascadia maintains an exacting review process for each borrower which includes market, financial and management analysis. Partially relying on professionals who are willing to "adopt a business" on a volunteer basis, Cascadia offers its borrowers technical assistance with everything from accounting to marketing and promotion.
Sound Relationships Reduce Risk - This combination of helping hand and watchful eye has produced sound relationships with borrowers, resulting in a loan loss rate of less than 1% of the portfolio - a loss rate that any commercial bank would envy. The terms of the relationship between Cascadia and its borrowers are set during a rigorous loan review and approval process where a thorough financial analysis is made to ensure the borrower's capacity for repayment. The prospective borrower carries much of the burden of the work during this review process
Making Opportunity Tangible - Cascadia's borrowers reflect a diversity of communities in the Northwest who tend to be underserved. For example: a percent of loans support entities which are owned by or serve low income people. Loans have gone to organizations which employ or serve women and minorities. Loans support companies involved in recycling or other environmental causes. Loans to for-profit enterprises have assisted new business starts. Loans went to worker owned and democratically controlled cooperatives. Loans have supported organic farmers and food companies using organic foods. Loans have enabled the establishment of affordable housing. These percentages total more than 100% because most loans create more than one impact or benefit in the community. The overlays are like the joining of hands - a synergy created by Cascadia's investors which benefits our community in many ways.
HOW YOU CAN INVEST IN CASCADIA - Cascadia's funds come from three sources:
1) Investors are individuals and institutions who deposit funds with Cascadia for a minimum of one year. Since Cascadia began lending in July of 1985, these investors have deposited millions of dollars in the Fund. Interest is paid on these deposits at a rate comparable to that available from money market funds. The average sized deposit is $4000 with some as large as $100,000.
2) Gifts and Grants mostly from individuals, foundations, and corporations help Cascadia to defray the high cost of technical assistance and loan origination for these non-traditional borrowers.
3) Members are an integral part of Cascadia's success. Their annual financial contributions, volunteer efforts, lobbying and networking have enable Cascadia Revolving Fund to become a nationally recognized organization providing much needed services to our region.
To help Cascadia Revolving Fund build a local economy that strengthens our communities and protects the environment, call or write them:
Cascadia Revolving Fund info@cascadiafund.orgReturn to Socially Responsible Investing Page