The Calvert Foundation, will offer a type of investment note designed to stimulate business in the devastated Gulf Coast region that focuses on local community organizations to dissuade predatory bargain hunting and still offer a decent return.
Calvert’s notes function like a Certificate of Deposit (CD) investment account, paying up to two percent interest (although investors can forego the interest so as to leverage the investment further). Unlike bank loans, which are insured by the FDIC, the Calvert Foundation’s notes are backed by its own loan loss reserves as well as $12 million in collateral. These guarantees, coupled with the foundation’s successful track record, mean investors won’t lose their shirts by ponying up cash for the effort.
The details are in E-Magazine – required subscription to read. (Thanks Mary!)