Investments

The interest rate that the Fair Finance Fund is offering is a base of 2%. If the Fair Finance Fund has a surplus in any given year, the board of directors does have the option to provide a greater return to investors.

The Fair Finance Fund has received first-loss capital of $245,377. Catalytic first-loss capital refers to socially and environmentally driven money, in this case, grant capital, which bears first investment losses to catalyze co-investors' participation. If any loan defaults occur, that loss will be absorbed from this first-loss capital before any investors suffer losses. It is a powerful risk aversion mechanism.

The Fair Finance Fund provides loans to local food and farm enterprises with a social mission of local production and regional markets. These businesses have to have their headquarters within Ontario and effectively communicate the social and environmental impacts of the proposed project, expansion or start-up initiative that the loan will be financing.

Annually all investors receive an Impact Investment Report that will provide insightful information about the impact of your investment within Ontario communities. This report is built from the Fair Finance Fund’s integrated impact measurement system and communicates outcomes in two ways. First, quantitative outcomes will be communicated through impact metrics on job creation (including jobs retained, job quality and more), additional revenue generation, and local procurement. Second, investors will receive detailed case studies highlighting the social and environmental outcomes their dollar has contributed to from highlighted clients. This provides a rooted understanding of specific loan recipients and their contribution to the growth of their regional food system.

All investors will receive their interest payments on January 31st or the next business day after each year. The interest payment will be automatically deposited into your chosen bank account through the Fair Finance Fund’s secure electronic fund transfer system. This system reliability and safely holds the investor’s account information and provides payments seamlessly. This system is also used by the Fair Finance Fund to receive the principal amount at the issuance date and deposit the principal and any remaining interest at maturity.