Did you know that we offer loans?
In addition to traditional grantmaking, the Mary Black Foundation offers low-interest loans for projects in our community.
The Foundation makes regular investments in the stock market but also invests up to 7% of our endowment in businesses and organizations whose work aligns with our mission. This allows the Foundation to build and maintain our assets while fostering partnerships by removing roadblocks and contributing to large projects that will have a positive impact on our community.
There is no one-size-fits-all approach to any form of mission-related investments. Our investment committee carefully considers each request and customizes each loan to fit the project.
Projects and proposals that come to the Foundation for consideration typically have at least one challenge - maybe there is a gap in the financing or the interest rates on other loan options are too high. The investment committee recognizes there are rarely risk-free loans in the community development space. The committee also recognizes the significant community benefit that can result from these projects. Our job is to try to reasonably balance the risk against the benefit and try to find a way to support good projects that need limited financial assistance to move forward.
Recent and past projects include:
$258,000 loan to contribute to building 8 rental homes in 2022.
In the process of approving a new loan to support the construction of affordable rental housing.
- $2 million loan to support the development of 7 projects in the Northside including: Northside Station, T.K. Gregg Community Center, 500 Northside Station Apartments, The Hub, Northside Townhomes, and two projects in progress.
$1.2 million loan to the City of Spartanburg in 2009 to contribute to the construction of CC Woodson Community Center.
This was the Foundation’s first investment of this kind.
Our assets are safely invested in the traditional market, and we could leave 100% of it there. But we are in a unique position to provide an opportunity for our partners to enter into loan agreements that not only help them achieve their missions and lead to significant community-wide impact, but that have realistic and humane re-payment terms. It benefits the Foundation, the organization receiving the loan, and, ultimately, the entire community.
The video below from the Ford Foundation is a great example of how mission-related investments and loans can work in a community. Note: Our investment process and details varies from theirs.
