Local Enterprise Assistance Fund

LEAF’s mission is to promote human and economic development by providing financing and development assistance to cooperatives and social purpose ventures that create and save jobs for low-income people. LEAF specializes in lending to cooperatives, including community-owned food stores, resident-owned manufactured home parks, and worker-owned cooperatives. We also serve social enterprises, with a particular emphasis on alternative staffing agencies that provide employment and training for those with barriers to employment. LEAF actively seeks to deploy funds in our areas of expertise in Persistent Poverty Counties, which are defined by a poverty rate of over 20% for 30 years. The large majority of these counties are in rural areas and African Americans, Latinos, and Native Americans are disproportionately represented among these counties’ residents. LEAF is certified as a Community Development Loan Fund (CDFI) by the US Treasury, insuring that funds are used to serve low-income communities.

Financial description

Capital invested in LEAF becomes part of a pool available for loans to new or emerging businesses in low-income urban and rural communities. LEAF provides business and housing loans, with housing loans primarily limited to resident-owned manufactured home parks. Business loans are made to worker- and consumer-owned cooperatives and the fund’s core investments focus on later stage investments and expansion of existing ventures. LEAF seeks risk-adjusted returns while promoting economic growth in low-income areas nationwide and invests with a view to realize its investment in 3-7 years. LEAF accepts capital in the form of loans with 2+ year terms and interest rates between 0-4%. Since its founding in 1983, LEAF has always repaid investors in full and on time. Key features of the fund that help protect investors: professional management has extensive lending experience; board of directors with legal, small business, and community development skills has final responsibility for loan approval; conservative loss reserve policy; an ample, board-designated reserve for the protection of investors; Community Development Financial Institution (CDFI) certification from the US Treasury.