Crowdfunding
Community development projects lack funds necessary to allow creditworthy enterprises to flourish. Yet, despite a growing appetite among ordinary people to put their dollars to work in their communities, most individuals lack a means to invest directly in projects they care about.
Response:CFE is working to channel more capital to underserved communities using CDFIs (Community Development Financial Institutions) as key linkages between individual mission investors and community enterprises needing funds. Through advocacy work with the Securities and Exchange Commission, CFE has sought to secure a source of community development capital through Regulation Crowdfunding, a new avenue for investment created by a securities exemption defined in the JOBS Act. Working to protect individual investors while also increasing access to capital by underserved communities, CFE has advised the SEC on how best to frame the new rules concerning mission investors, issuers and portals. Regulation Crowdfunding promises to be a transformative source of capital for enterprises needing funds that are looking to offer debt or equity to individuals.
CFE believes that CDFIs are the strongest linkage between mission investors and high-need, high-impact community development projects and enterprises. Therefore, we are coupling the national network of CDFIs with the passion and power of individual mission investors, by facilitating the creation of a platform where mission investors can access CDFI-vetted community investment opportunities and invest alongside CDFIs in credit-worthy community projects, creating a significant new source of capital for the community development finance sector.
To learn more about our crowdfunding work, please contact Suzanne Adatto at Suzanne@cfenterprises.org