Invest Locally

What is the Community First Fund?

The Community First Fund is a way for you to put your money to work in our local community. It is a loan from you to Common Capital that we will use to make loans to businesses and community projects throughout Western Massachusetts. Similar to a certificate of deposit at a bank or credit union, you invest your money with us for a specific term of either three years or five years.

Please scroll to the bottom of this page for our current Offering Memorandum and audited financial statements.

How will we use your investment?

Your funds will go into Common Capital’s general loan pool, which we use to provide financing to local businesses and community projects that provide positive impacts in the communities where they are located. Common Capital assesses the financial viability of each project we fund, as well as its potential impacts. In addition to our loan underwriting criteria, Common Capital utilizes seven “impact drivers” when we evaluate a business or project for financing:

What are the terms of my investment?

You may invest in the Community First fund in any amount of at least $500.00. You select a term of either 3 years or 5 years. We’ll pay interest to you semi-annually (as of June 30th and December 31st of each year) and you’ll have the option to either redeem or renew your investment when it matures.

Our current interest rates are 2.15% for a 3-year term and 2.65% for a 5-year term. Rates are fixed for the term of the investment; rates for new investments are subject to change without notice. Investors may elect to receive a lower interest rate than our published rates.

How safe is my investment in the Community First Fund?

Your investment is an unsecured loan to Common Capital, and it is not insured by the FDIC or any other entity. The primary protections for your investment are the strength of our balance sheet and our financial performance. As of June 30, 2021 (the date of our last audited financial statements), Common Capital had $7.7 million in assets, $3.0 million in liabilities, and $4.7 million in net assets (the nonprofit term for “equity” or “net worth”). This results in a very low (meaning very good) “debt-to-equity” ratio; since our net assets currently exceed our liabilities, our balance sheet is strong, which helps protect your investment.

Will you use my investment to make risky loans?

All investments in the Community First Fund are used to make loans to small, local businesses. We underwrite our small business loans using relevant and prudent community development lending criteria. Our business is to make loans to “unbankable” and other underserved businesses in Western Massachusetts; the loans we make are riskier than those made by banks and credit unions. 

We seek to mitigate the risks in our loan portfolio through close loan management and, importantly, the free business assistance we offer to all our borrowers. Business assistance includes general business coaching, mentoring, and problem solving delivered one-on-one by a member of our team or an outside expert. We also hire outside experts to provide specific training in the areas of finance and accounting, and marketing, with an emphasis on digital marketing.

How can I learn more about Common Capital and Community First Fund?

You can learn more about our work by viewing our most recent annual report.   The report highlights some of the clients we have assisted along with others listed identified throughout our website.   In addition, please click on the links below for our current Community First Fund Offering Memorandum and audited financial statements.