By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – Sometimes the world seems so big, and I get overwhelmed by my desire to do something to initiate change. There is now a unique financial program where an investor can feel good about where there money is going, as well as make a difference. I'm Maxine Shapiro with KERA Marketplace Midday.
One way to reconnect with the community and experience a genuine satisfaction in one's investment might be through the Community Investment Note. Investor Associate Michael Drane emphasized this morning the twofold return one gets with their investment, the first being financial.
Let's say you have $1000 to invest. The Community Investment Note acts exactly like a fixed income security, a CD. Only you get to pick the length of time. You've got a choice of 1-, 3-, 5-, 7- or 10-year note. But here's the unique part. You get to choose an interest rate from 0-to-3%. Why would you choose a lower rate? This leads into the-just-as-critical second part of your return - the social return. 100% of all the money you invest goes to community development - affordable housing, jobs, and assisting small businesses. Depressed communities are a big risk for banks. Even if they agree to give a loan, the interest rates are exorbitant. Calvert Foundation supplies loans well below the current market costs. Interest rates might be low for you and me, but not for the small business start-up or housing project in South Dallas. And as Drane pointed out, investors pick the lower rates so the social return in higher. You can select what region of the country you want your money to go to. Invest $50,000 or more and pick exactly which one of the 180 community development organization you want to support.
So if you have a desire to see your investments create a positive change for the world around you, this is one way to do it. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. To contact Maxine Shapiro, please send emails to mshapiro@kera.org.
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