SUPPORT US - investments: individuals and institutions

Contributions | Investments: Individuals and Institutions | 2 Million and Ten by 2010 | Supporters

Four Bands Community Fund invites individuals, banks, and other institutions to help us expand our available capital for our small business borrowers. Low interest investments in the form of a loan to Four Bands, allow us the use of funds that we can, in turn, reinvest in worthy small businesses in the community. You might also think of it as a social investment in the community.

Prospective investors are advised, however, that Four Bands is not an insured institution and there is no guarantee of repayment. We welcome the opportunity to visit with interested investors and answer any questions you might have about our policies and track record on payments to lenders. Investments in Four Bands are not tax deductible as a charitable gift.

Four Bands has significant grant support from the U.S. Department of Treasury CDFI Fund, US Department of Agriculture Rural Development, and a mix of private and corporate foundations and contributors (Supporters), which helps protects our lenders against losses and enables us to add flexibility to our lending, which benefits our borrowers. Our loan policies and procedures, financial policies, and investment procedures offer additional safeguards for lenders. Download our latest audit report to view our financial performance.

Obtain a downloadable prospectus here for detailed information about our investment opportunities. Or download an Investment Application form now and help Four Bands expand our loan capital to support small business development on the Cheyenne River Reservation.

Though the financial return on loans is modest, the social return is enormous. Using investor-driven capital, grants, and gifts, Four Bands has made 114 loans to 65 entrepreneurs on the Cheyenne River Reservation. These loans have resulted in 68 new and expanded businesses creating or retaining 102 jobs.

Founded in 2000, Four Bands has provided comprehensive business development training to 135 people, provided additional technical assistance services to 575 adults and 325 youths, approved 93 loans totaling $470,000 and contributed more than $40,000 in savings match for asset building for local families.

Below is a quick Q & A to help explain how you can make a low-interest investment in Four Bands in the form of a loan.

1. How does the process work?

When you invest in Four Bands, you complete a loan application form and we issue you a promissory note for the loan amount. At the end of the term, we pay back the loan in full.

2. Will I earn interest on my money?

Yes. Lenders choose their own simple annual interest rate. For loans of five years or longer, the rate is 0% to 4%. For loans shorter than five years, the rate is 0% to 3%. The lower the rate, the more helpful the loan is to us and to our borrowers, of course.

3. How can I be assured that I'll get my money back?

Four Bands will maintain equity reserves, that is, permanent capital so that in the event that one of our borrowers doesn't repay his or her loan, your money is protected. Lenders are advised, however, that Four Bands is not FDIC insured.

4. How much do I have to invest?

The minimum investment is $5,000. The minimum term is three years. Longer terms and larger amounts are most helpful for the types of loans we make to our borrowers.

5. Why don't Four Bands Community Fund borrowers just get bank loans like everybody else?

Most banks won't or can't make these loans because of complicated land ownership issues on Indian reservations across the country and banking regulations. Four Bands not only loans money, but we provide the training and support that help people who otherwise can't get money from banks to be successful. Once our borrowers successfully repay their loans from us, many of them will have credit histories and track records needed to access traditional loan dollars from banks.