Self-Help Ventures Fund Note

The Self-Help Note is offered by Self-Help Ventures Fund (SHVF), a nonprofit 501(c)(3)development finance organization. SHVF is funded with loans, investments and grants from banks, foundations, insurance companies, investment banks, religious organizations, corporations, and government sources. It operates three programs: business and community facility lending; community real estate development; and an affordable home loan programs. The fund manages a portfolio of approximately $940 million in loans and real estate investments. Self-Help Ventures Fund’s primary markets are in the U.S. South and California with certain products available nationally. It is certified by the U.S. Department of Treasury as a Community Development Financial Institution.

The Self-Help Note product enables investors to invest in an intermediary that finances community projects that don't have access to conventional credit. With a minimum investment of $2 million, the Notes are most suitable for institutional investors. Self-Help Ventures Fund has offered these Notes since 1986 and has a perfect repayment record. Notes have been purchased by commercial banks, foundations, investment banks, universities, pension funds, insurance companies, mutual funds and federal government agencies.

Financial description

Self-Help Notes are senior, unsecured, and are not insured by the federal government. Self-Help Ventures Fund provides full recourse to Note holders. The terms of the Notes vary from year to year, and depend on the interest in the purchaser. Lower interest rates and longer terms help Self-Help deepen its impact. Generally, the terms and interest rates are as follows:
Variable Rate Notes: 5 to 15 year maturities; interest rate equal to 3-month LIBOR plus 1.50%
Fixed Rate Notes: 5 to 15 year maturities; interest rate equal to 5 to 15 year swap rate plus 1.50%