PYM’s investments through our Quaker investment partner, Friends Fiduciary, have always been aligned with Quaker testimonies. Friends Fiduciary actively screens out companies in industries like defense, gambling, tobacco, alcohol, private prisons, and coal, and in companies that have histories of poor environmental, social and governance (ESG) practices. In addition, Friends Fiduciary votes shareholder proxies to communicate our Quaker values on ESG issues, and they join with other institutional and faith-based investors in shareholder resolutions and company dialogues to encourage reform.
Neither organization has done social impact investing by directly putting money into underserved communities – until now.
In partnership with Friends Fiduciary, PYM has made a $1 million investment in the Impact Accelerator Bridge Loan Fund I, sponsored by the Reinvestment Fund. Friends who heard about this potential investment at Annual Sessions in July received the report warmly. PYM’s Administrative Council, its Finance Committee, and Friends Fiduciary have worked since July on the necessary review and due diligence to make PYM’s participation possible.
About Bridge Loan Funding
Many community development projects include funding sources that will pay in only over time or after the project is complete, such as federal and state tax credits and public and philanthropic grants. Borrowers need to bridge these sources but may have limited access to financing. Since 2013, the Reinvestment Fund has done $100 million in bridge lending, supporting jobs and projects that benefit communities.
About the Impact Accelerator Bridge Loan Fund
Nonprofit investors, including Friends Fiduciary and PYM, contributed the initial capital to this fund. By making this investment, we are spurring additional investment from traditional lenders like commercial banks, thereby increasing the financing available to support community-based projects.
One of the Fund’s first projects is affordable housing built by the Women’s Community Revitalization Project in the mixed income neighborhood of Point Breeze. It will take advantage of one of the City of Philadelphia’s first “Community Land Trusts” – a communal ownership model that allows low income families to take advantage of the wealth-building potential of homeownership while preserving affordability in perpetuity.
About the Reinvestment Fund
Over its 35-year history, the Reinvestment Fund has made more than $2 billion in loans and pioneered innovations in the community development industry. Reinvestment Fund brings together individual investors, banks, government officials, private foundations, and faith-based and community organizations to invest in projects that build stronger, more equitable communities.