FAQ: Communities at Work Fund
The following questions are for our constituents who have questions about today’s announcement <link to press release> about the creation of the new Communities at Work fund in partnership with Citi and OFN. Additional information is available at www.communitiesatworkfund.com.
For Investors and Philanthropic Supporters of Calvert Foundation
What does the new Communities at Work Fund mean for my investments?
This announcement does not change anything for Calvert Foundation’s existing or potential investors. Citi’s investment creates a completely separate mechanism that does not, and will not, affect our investors.
Does this change the Community Investment Note?
No. The integrity, quality, and size of all Community Investment Note investments remain unchanged by this announcement, as Citi’s investment will be used to create a separate loan mechanism.
Will Citi be managing my investments?
No, the Citi investment creates a completely separate mechanism that does not, and will not, impact our existing investors or the Community Investment Note.
Does this mean Calvert Foundation is changing its business strategy or mission?
No – in fact, this bolsters and expands our commitment to maximizing the flow of capital to disadvantaged communities via innovative financing in order to create a more equitable and sustainable society.
Will this make Calvert Foundation more bureaucratic and less personal? Will I have a more difficult time reaching Calvert Foundation employees to help me with my investments?
Calvert Foundation’s commitment to providing personal service to our investors and our borrowers has not changed. Citi has provided funding to expand our infrastructure to accommodate the management of the new funds. You will still be able to call or email a Calvert Foundation employee to get the answers to your investment questions whenever you need them.
For Financial Advisors
How will my clients be affected?
This announcement does not change anything for Calvert Foundation’s existing or potential investors. Citi’s investment creates a completely separate mechanism that does not, and will not, affect our investors. We are committed to delivering the same superior level of service to our existing and potential investors.
Why weren’t investors consulted or alerted before this deal was signed?
Citi approached Calvert Foundation to capitalize on our unique expertise in loan administration and management. The sensitive nature of the information prevented us from sharing news of the partnership before the formal announcement. The partnership does not affect any of our current or potential investors.
What will Citi’s role be in the administration of loans?
Citi approached Calvert Foundation to capitalize on our unique expertise in loan administration and management. Calvert Foundation will handle seeking out and vetting potential borrowers, as well as the administration, management and distribution of loans.
Will Citi have oversight into the way Calvert Foundation manages its business?
No. This partnership extends only to the new Fund created by Calvert Foundation with Citi resources. Citi will not join any management teams within Calvert Foundation, nor will Citi dictate Calvert Foundation’s mission or business strategy.
Does this change the Community Investment Note?
No. The integrity, quality, and size of the Community Investment Note is unchanged by this announcement, as Citi’s investment will be used to create a separate loan mechanism.
Does this mean Calvert Foundation is changing its business strategy or mission?
No – in fact, this bolsters and expands our commitment to maximizing the flow of capital to disadvantaged communities via innovative financing in order to create a more equitable and sustainable society.
For Calvert Foundation Borrowers
What does this mean for the loan that I’m currently holding?
The terms and conditions of your loan will not change.
Am I eligible for a loan from the new Fund?
CDFI Loan Funds, Community Development Entities (CDE) who are affiliates of CDFI Loan Funds, and microenterprise funds are eligible to apply for capital from the Communities at Work Fund™. For more information on the Fund, go to www.communitiesatworkfund.com.
Does this increase the amount of money available for my organization to borrow?
Some of our domestic borrowers will become borrowers of the new Communities at Work fund, while others will continue working through our existing portfolio. Future borrowers may be eligible to borrow through the fund – see www.communitiesatworkfund.com for more information.
What will Citi’s role be?
Citi approached Calvert Foundation to capitalize on our unique expertise in loan administration and management. Calvert Foundation will handle seeking out and vetting potential borrowers, as well as the administration, management, and disbursement of loans.
Will Citi have oversight into the way Calvert Foundation manages its business?
No. This partnership extends only to the new Communities at Work fund created by Calvert Foundation with Citi resources. Citi will not join any management teams within Calvert Foundation, nor will Citi dictate Calvert Foundation’s mission or business strategy.
Does this change the Community Investment Note?
No. The integrity, quality, and size of the Community Investment Note is unchanged by this announcement, as Citi’s investment will be used to create a separate loan mechanism.
Does this mean Calvert Foundation is changing its business strategy or mission?
No – in fact, this bolsters and expands our commitment to maximizing the flow of capital to disadvantaged communities via innovative financing in order to create a more equitable and sustainable society.
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