Impact lenders tackle huge problems–the affordable housing crisis, structural racism, predatory lending, and many more. Yet impact lenders are typically locked out of the kinds of growth capital that allow for-profit ventures to quickly scale. Capital Good Fund, a nonprofit loan fund that provides ethical payday loans, energy efficiency loans, and car loans, has created a model that others can follow to break that pattern. Listen to this episode to learn about the model, Capital Good Fund’s successes to date, and the long, exciting road ahead to reach the scale that a problem of this magnitude deserves.
Andy Posner founded Capital Good Fund in February of 2009 while getting his Master of Arts in Environmental Studies at Brown University, where he was studying financing mechanisms for clean energy. He created Capital Good Fund with an eye toward using financial services to tackle endemic poverty, first in Rhode Island, and then nationwide. Under his leadership and using the growth model described in this episode, Capital Good Fund has made 5,500 loans worth an estimated $11.4 million and has grown to serve Rhode Island, Illinois, Massachusetts, Florida and Delaware with plans to expand to Texas in the future.
Andy is also proud to be the Treasurer of the national Board of Directors of the Credit Builders Alliance, an organization of which Capital Good Fund is a member, as well as a member of the Board of the Community Reinvestment Fund, one of the largest nonprofit lenders in America.
Resources Related to This Episode:
Capital Good Fund’s Website: https://capitalgoodfund.org/
Social Capital Fund Website: www.socialcapitalfund.org
Andy Posner’s Writings: https://www.andyposner.org/