Enterprise Community Impact Note

Enterprise Community Partners makes investments that provide capital to community-based, non-profit, and mission-aligned, affordable housing and community developers, with the intent of increasing the stock and improving the quality of affordable housing and community facilities in the communities they serve in the United States.

The Impact Note is offered through Enterprise’s Loan Fund which has invested more than $1.5 billion in community infrastructure – homes, schools, health centers, etc. – for more than two decades. Loan Fund blends private, public, and philanthropic capital to provide financing that is tailored to meet the needs of community developers through direct loans and structured funds.

The Impact Note is a private fixed-income debt product available at a minimum purchase of $5,000. Terms on the Impact Note range from 1 to 10 years with correlating interest rates between 1.00% and 3.50%. Proceeds from the Impact Note are invested into real estate assets, but the Impact Note itself is secured by a third-party guarantee.

Since the Impact Note was launched in 2010, more than 350 investments have been made through the Impact Note totaling $60 million invested. Enterprise Community Partners also has a conventional equity fund available to accredited and institutional investors.

Financial description

Loan Fund raises debt capital outside of the Impact Note through a variety of investors including financial institutions and insurance companies. All capital is placed in a revolving loan fund and used to provide flexible loan products, both on and off-balance sheet, to meet the capital needs of community developers and small businesses lacking access to traditional financing. Loan Fund is actively seeking investments to access both medium and long-term debt for large-scale housing and facilities projects.
We provide an array of financial products to our borrowers to acquire, develop and preserve affordable homes, and revitalize the surrounding community. These products include: predevelopment, acquisition, construction, bridge, permanent, growth capital and small businesses loans.
Loan Fund has a strong track record of investing in high performing projects and businesses – borrowers have defaulted on only 1.5% of all loans made. We keep adequate loan loss reserves on each loan, and a healthy amount of equity on our balance sheet maintaining a minimum net asset ratio of 20 percent. Loan Fund has never missed a timely payment to investors or failed to return an investment in full, although past performance is not indicative of future results.