Equity Equivalent Investments and Program Related Investments: EQ2s and PRIs

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EQ2s

Equity Equivalent Investments (EQ2s) are low-interest loans that act as equity for CRF. That equity gives us the ability to attract larger sources of market-rate capital. The result? You can dramatically multiply the impact of your economic development dollars to improve the lives of more people in more struggling communities across the country.

See what an EQ2 can accomplish.

  • Boost banks’ Community Reinvestment Act (CRA) credits.
    • Receive credit every year the EQ2 remains outstanding.
    • Fulfills the investment and lending tests required for CRA credit—two of the necessary elements for CRA credit.
  • Turn every $1 you invest into $5 of direct community benefits, on average. Your social-rate investments attract market-rate investments, which increase our overall funding ability.
  • Deploy a lot of capital at once.
  • Target communities anywhere in the country.
  • Provide measurable community impact.

For more information, contact Keith Rachey, Senior Vice President & Chief Operations Officer, at 612.200.9109.

PRIs

This is one powerful social-purpose investment that can help you make a truly measurable impact in struggling neighborhoods anywhere in the country.

Program Related Investments (PRIs) are often made in the form of low-interest loans to CRF. The beauty of PRIs is how we can then leverage your investments with larger sources of market-rate capital to go well beyond the face value of your social investments. Your investment is multiplied to reach even more communities in need.

PRI benefits to foundations and others

  • Turns every $1 you invest into $5 of direct community benefits, on average, because your social-rate investments attract market-rate investments, which increase our overall funding.
  • Provides social and economic return with an ultimate return of principal to relend.
  • Allows foundations to make large distributions, often multiples of grant size funding.
  • Helps meet payout objectives.
  • Targets communities anywhere in the country.
  • Provides measurable community impact.

Additional benefits for banks

  • Boosts banks’ Community Reinvestment Act (CRA) credits.
    • Receives credit every year the PRI remains outstanding.
    • Fulfills the investment and lending tests required for CRA credit—two of the necessary elements for CRA credit.

For more information, contact Keith Rachey, Senior Vice President and Chief Operations Officer, at 612.200.9109.