The Hawai‘i Community Foundation is making a big move to support local communities by increasing its Social Impact Investment Fund to $20 million. This fund aims to provide more accessible financing for affordable housing, food systems, and small businesses, especially in Maui County.
Recently, the foundation’s Board of Governors approved adding $10 million from their endowment to this initiative. Unlike typical grants, this fund offers low-interest loans to Community Development Financial Institutions (CDFIs) and other organizations. These entities then distribute the funds to local projects, such as housing development or farming operations.
The idea is simple: the money can be repaid and reinvested into future initiatives. Michelle Ka‘uhane, the foundation’s COO, explained that while grants offer immediate help, the investment fund supports projects that can return financial benefits. This dual approach allows them to tackle different needs effectively.
Since its launch in 2019, the fund has allocated $7.5 million in loans, typically with interest rates of 1% to 2%. Impressively, there’s been a 0% default rate. The institutions involved have seen their total assets grow from $18 million to $87 million, demonstrating the fund’s positive impact.
One shining example of this fund’s success is the Hawai‘i ‘Ulu Cooperative, which aims to enhance food security in the state. CEO Dana Shapiro shared that the funding helped them expand from processing 500,000 pounds of crops to a projected 2 million pounds annually. This growth not only supports local farmers but also boosts Hawai‘i’s self-sufficiency in food production.
The fund currently supports nine organizations, including the Council for Native Hawaiian Advancement and Hawai‘i Habitat for Humanity. Mary Spadaro from Slow Money Hawai‘i highlighted how this initiative encourages local economic growth, as loans are repaid and reinvested, making a real difference in the community.
The fund is part of the foundation’s broader CHANGE Framework, which focuses on creating a community-centered economy. Through programs like this, the foundation is committed to building a more resilient and sustainable Hawai‘i.
For more detailed insights on community impact through funding strategies, check out resources from the Maui Economic Development Board or the Hawai‘i Department of Agriculture.
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