How do I invest less than $10,000?
We are working with Santa Clara University to determine if we can aggregate donations and make a single investment in Truss Fund with the proceeds returning to Miller Center after three years. Please contact Alex Pan at email@example.com for further details.
Who is behind Truss Fund?
Truss Fund is a mandate of Beneficial Returns, an impact investing loan fund that supports social enterprises addressing poverty in the developing world. Our portfolio includes loans to four graduates of the GSBI program. We consider ourselves kindred spirits but we are not legally affiliated with the Miller Center or Santa Clara University.
How much will you lend to each social enterprise?
We expect to lend $20,000 - $100,000 per social enterprise. To leverage our capital and increase the likelihood that the social enterprises will survive and repay our loan, we will require some combination of expense reduction by the SEs, matching loans or guarantees from other investors and grants before we disburse.
What terms will you offer to the social enterprises?
All loans will have a six-month grace period and a 2% annual interest rate. Loans will be disbursed in two tranches. There will be no loan fees or documentation fees charged beyond a $50 wire fee. All loans will be structured with full repayment within 24 months of original loan disbursement.
How will you decide who to fund?
Our volunteer credit committee will decide. Because of the urgent nature of these requests we will be basing our decisions on an assessment of the social enterprises’ capacity to repay our loan, the additionality of our support and the projected impact that will be preserved with our capital.
How will Beneficial Returns be compensated?
Beneficial Returns will charge a 2% annual management fee on the amount lent. Additionally, Beneficial Returns will treat as income all of the interest that is repaid to the Truss Fund. All remaining money will be returned to The Miller Center at Santa Clara University on a pro rata basis.
What happens if a social enterprise needs a grant rather than a loan?
Many SEs are ill-equipped to repay an emergency loan, even with the favorable terms that we are offering. We urge you to consider supporting these enterprises with direct grants.