What is CFNE?
CFNE is the Cooperative Fund of New England, a community developement financial institution (CDFI) that makes loans to cooperatives, employee owned businesses, and community based nonprofits.
Where does CFNE get its money?
Socially responsible investment loans are made by various individuals, religious organizations, cooperatives, banks, intermediaries and foundations.
Who does CFNE Lend to?
We make loans to cooperatives, employee owned businesses, and community based nonprofits in New England and eastern New York.
Is CFNE a cooperative?
No, but we use consensus decision making, our workplace is democratic, and the board is from the cooperative community we serve.
How do I apply for a loan?
First, call our office at 1-800-818-7833 to discuss your organization's needs, then download our loan application.
How long does it take?
Our process usually includes a site visit fromone of our outreach coordinators but we generally estimate 3-4 weeks from application to funding.
What are your rates and terms?
Terms generally range from 3-7 years, rates are at or below market.
Do we need collateral?
Collateral can be business assets, inventory, real estate, equipment, accounts and/or grants receivables, guarantees.
How do I support CFNE?
You can make a loan to CFNE, make a grant or donation to CFNE? you can refer others to CFNE as borrowers or lenders, you can support CFNE's borrowers.
What makes CFNE different from a bank?
CFNE is not federally regulated although we are a U.S. treasury certified CDFI. Social investment loans are not insured by any government agencies (like the FDIC) but one should look at our fund's history of over 32 years. No investor has lost a dollar.
What is a cooperative?
Cooperatives are businesses-be it food, housing, or agriculture-that exist to benefit the people that work, live, or shop in them. Profits from business or housing cooperatives aren't siphoned off to a single outside owner, but reinvested in the community they came from, serving their own members economically, socially, and educationally.
Cooperatives are community-builders. People often shop at, live in, or work for cooperatives because co-ops make a special effort to be active participants in improving the lives of neighborhood families.
Cooperatives are democracies. All co-op members have a voice in making decisions about what direction the enterprise takes. In this way, members gain valuable skills in governance, finance, management, and more.
What is a CDFI?
A CDFI is a Commuity Development Financial Institution. There are more than 500 Community Development Financial Institutions (CDFIs) in the United States, with at least one in every state. The primary mission of CDFIs is to promote economic development in struggling areas, both urban and rural, that are underserved by traditional financial institutions. CDFIs are playing a critical role in building a healthier economy by providing these communities with the access to capital that they so sorely need.
What is CCF?
CCF is the Cooperative Capital Fund. It is a newly formed nonprofit that was the result of work by a committee of the CFNE Board. CCF will have a separate board inlcuidng members of the CFNE Board as well as the outside cooperative community. CCF will provide long term equity-like funds to augment CFNE loans.
What is the difference between CFNE and CCF?
CCF and CFNE are separate nonprofits offering different products. CFNE provides loans secured by collateral, CCF provides longer-term, unsecured, patient equity capital for cooperatives.