What Is Impact Investment?
Impact investing seeks to create positive social and environmental benefits while also generating financial returns. Impact investing differs from pure philanthropy, which does not expect financial returns, or from simple investing where the focus is solely on maximizing financial returns and from socially responsible investing, which places more weight on financial performance. When investing with TBL fund you will make a Triple Bottom Line Impact by creating social, economic, and environmental benefits.
Maximize the impact of your investment dollar.
Investing in people
Preserves affordable multifamily housing (MFAH) for its low-income tenants and help disadvantaged communities (DAC) through investments in energy saving projects. Creating local jobs via the investments in pollution reduction solutions.
Practical Solutions for Resource Efficiency
Implements innovative strategies to reduce energy and water waste while supporting local energy production, leading to lower pollution and improved efficiency.
A lasting economic impact
Provides savings on utility bills and health care costs for low income populations and/or generating income for disadvantaged communities.
When upgrading multi-family affordable housing, and developing energy saving projects in disadvantaged communities, investments in TBL Fund improve the lives of fixed-income seniors, disabled individuals, low-income families, veterans, and other underserved households.
Investor Inquiry
Please contact us to ask questions about investing with TBL Fund or schedule an appointment with a member of our investment team.
Our Investors
TBL Fund investors care about social, environmental and economic justice issues. Our investors wish to provide low-income and disadvantaged communities (LIDAC) with cost savings on their utility bills and health care costs, better air quality, local jobs, affordable housing, and a healthier, more comfortable and safer home. Our investors can be categorized as:
Community Reinvestment Act (CRA) Investors
By investing in TBL Fund, a certified CDFI, our Bank investors fulfill their CRA obligations. Some of our CRA investors include:
- MidFirst Bank
- American Express
- Synchrony Bank
- Wells Fargo
- Ally Bank
- Federal Reserve Bank of Kansas City
- Bank of the West
- BBVA Compass
Impact Investors
Corporations, Foundations, Governments, Family Trusts, and Individuals, looking for triple bottom line benefits from their capital are the typical investor in TBL Fund. While most of them are private individuals or families who wish to remain anonymous, some of our Impact Investors include:
- Opportunity Finance Network
- CDFI Fund
- Colorado Gives Foundation
- Intermountain Healthcare
- Google
- Edwards Mother Earth Foundation
- Mighty Arrow Family Foundation
- Community First Foundation
- USDA Rural Development
Grantors
TBL Fund regularly receives grants that support its mission, help expand its impact, increase its internal capacity, and develop new programs and initiatives. Some of the past and current grantors include:
- CDFI Fund
- US Department of Energy
- Utah Clean Air Partnership (UCAIR)
- Opportunity Finance Network
Risk Management
TBL Fund is a small CDFI, and as such, has the financial and programmatic risks common to all start-up organizations. One such risk is that TBL Fund is unable to generate enough revenues from its programs to meet its operating expenses and may run out of cash. TBL Fund has mitigated this risk through its strategic partnership with ICAST, which continues to support and fund its operations as needed. ICAST is the fiscal sponsor of TBL Fund and is committed to supporting TBL Fund.
Another financial and programmatic risk associated with its financial and lending activity projections is facing a higher than projected default rate on its lending portfolio. To mitigate this risk, TBL Fund:
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- Provides a loan loss reserve pool (LLRP) of a minimum of 2.5% of outstanding loans that can cover 100% of any loan losses up to the value of the LLRP. TBL Fund projects a default rate of less than 1% and its current default rate is 0%.
- Collateralizes the loan with a lien on the property. If prevented by regulatory hurdles (e.g., if HUD or USDA do not allow additional liens on their mortgages), TBL Fund provides financing through off-balance sheet programs such as PACE (which recovers the investment through a property tax assessment on the property), or EPC which recovers the investment through a contract guaranteed by a government agency, such as HUD). Some investments may also require a personal guarantee from the property owners.
- Evaluates the financial viability of each loan applicant before making a loan for the green rehab, so that risky applicants are not approved. As a minimum, TBL Fund requires a 90% LTV ratio and a 1.15 DSCR.
- Evaluates if the green rehab projects will save enough in utility bills and operation and maintenance costs to repay the loan, thus establishing a means (income stream) to fulfil the loan obligation on the part of the borrower.
