IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
The Capital Good Fund
Climate Change
Microfinance and Low-income Financial ServicesFirm Overview
Capital Good Fund is a nonprofit, U.S. Treasury-certified Community Development Financial Institution headquartered in Providence, RI and operating in seven states--Rhode Island, Delaware, Massachusetts, Illinois, Florida, Texas, and Colorado. Our mission is to create pathways out of poverty and advance a green economy through inclusive financial services. We are the only nonprofit scaling to combat the $200 billion predatory loan industry. We offer life-changing loans of $300 to $50,000 that are used for immigration expenses (citizenship, green card, family petitions); car repair, purchase, or refinance; energy-efficiency upgrades; catching up on rent and utilities; security deposits; and emergencies. The products we offer help borrowers save hundreds and thousands of dollars compared to predatory alternatives while building credit. Our loans financially empower vulnerable populations (immigrants, people of color, the LGBT community, etc.) and address climate change through energy-efficiency.
Years of Operation: 10 years or more
% of Capital from Top 3 Investors: Less than 25%
The fringe and predatory loan industry--payday lenders, pawnshops, rent-to-own stores, high-interest installment lenders--has more than doubled to $200 billion since 2010, providing a large market opportunity to address this grave economic injustice with fair, equitable financial services. This needs to be accomplished concurrent with a climate justice focus.
We are part of the “Credit As An Asset” movement, which highlights the importance of financial resilience to upward mobility and climate adaptability. A good credit score is not only crucial when accessing credit, but also for approval on an affordable apartment, car insurance, and even employment. Moreover, access to short-term credit to cover emergencies, as well as affordable loans for investments in the future–such as green upgrades and becoming a citizen–strengthens a family’s ability to weather financial shocks without becoming caught in a debt-trap. In other words, we seek to serve as a “backstop” for families in crisis—preventing a downward spiral—and a “springboard” for families to take advantage of opportunities to realize their goals. By using “old-fashioned” underwriting--relying on ability-to-pay, banking history, and a holistic review of the applicant’s financial history--we can properly evaluate an individual's credit risk, rather than relying on “magic algorithms” or oversimplified FICO-based decisioning.
We are the only nonprofit CDFI focused exclusively on consumer loans that serve as an alternative to the aforementioned $200 billion predatory industry. Our business is built on a scalable technology platform that allows us to effectively originate and underwrite consumer loans, with an average loan size of $2,000. We create impacts for clients in a number of ways. The first is that clients save $100s and even $1,000s compared to alternative predatory products. Second, all our products report to the three main credit bureaus, thereby improving (by an average of 75 points) or establishing the borrower’s credit. The final impact is the actual use of the loan: domestic abuse survivors seeking an affordable apartment, families needing to repair their car so they can get to work, immigrants solidifying their residency status so that they can access more opportunities, green home upgrades to reduce climate impacts, etc.
Investment Example
During the pandemic, single mother Latoya Johnson, 37, of Spring Texas lost her job as a medical supply coordinator and was out of work for a year. “It was pretty hard,” she recalls. “I fell behind on my bills, almost lost my car, and was living without health insurance.” As she starts a new business, she turned to Capital Good Fund for an $800 Crisis Relief Loan at 5% to help her pay her family’s moving expenses. “The Capital Good Fund loan helped me out a lot,” she added. “It was like a burden and a weight lifted off me. I have my bases covered.” She appreciated how easy Capital Good Fund’s process was and is glad she has the money for her upcoming move.
Leadership and Team
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Andrew Posner – Founder & Chief Executive Officer More Info
Andy Posner founded Capital Good Fund in February of 2009 while getting his Master of Arts in Environmental Studies at Brown University, where he was studying financing mechanisms for clean energy. After reading Banker to the Poor by Dr. Muhammad Yunus, the 'Father of Microfinance' and 2006 Nobel Peace Prize winner, he quickly realized that equitable financial services could unlock the potential of the poor just as they could do the same for clean energy technologies. At the same time, as the financial crisis of 2008 began to unravel the economy and devastate low-income communities, Andy decided to take action. He created Capital Good Fund with an eye toward using financial services to tackle endemic poverty, first in Rhode Island, and then nationwide. |
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James Mazjanis – Chief Financial Officer More Info
Jim is excited to work at the Capital Good Fund because it is a unique organization, with talented, caring people, working hard to meaningfully impact on the lives of others. He is a strong believer that small advances add up quickly and make for big positive changes. Prior to coming to the Capital Good Fund, Jim worked with several local not-for-profit organizations. At Neighborhood Health Plan of Rhode Island, his role as Director of Analysis helped the organization make better data driven decisions. At Johnson & Wales University Jim served as Director of Financial Operations, reshaping the finance department with a focus on continuous process improvement. He holds a bachelor’s degree in Chemistry and an MBA from the University of Connecticut. |
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Anne Dickson – Chief Operating Officer More Info
Annie believes equitable access to resources is a key pathway out of poverty. Before moving back to Rhode Island in December 2016, she spent over three years in Port au Prince, Haiti, running operations for an ethical fashion company deux mains designs to create dignified, living-wage employment opportunities and offer job training. While earning a certificate in International Non-Governmental Organizations Studies, she worked for a non-profit in Haiti transitioning intentionally from disaster response-driven aid to innovative, community-led development. Annie received her B.A. in Anthropology and Political Science from Rhode Island College, a degree combination that has contributed both a human-centered approach and an element of advocacy to her experiences. While professionally she's spent time in the fashion industry, social enterprise development and now financial resources, the common factor is removing obstacles to economic empowerment. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
100%
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We systematically target social and environmental impacts with our services. First, all our loan products are offered in native-translated Spanish to target high-potential Latinx families. Second, we have two loan products (DoubleGreen Weatherization and Immigration Loans) which serve vulnerable or underserved individuals. For the DoubleGreen loans, we specifically work with low- and moderate-income homeowners that do not have access to traditional credit options for safety and energy-efficiency home improvements. Our immigration loans specifically work with individuals looking to obtain, maintain, or improve their immigration status. These targeted impacts are in addition to the general purposes of the loans which often have their own intended impacts for each respective individual or family. For instance, we work with domestic abuse survivors seeking an affordable apartment or families needing to repair their car so they can get to work.
Impact Tracking and Monitoring
Learn More
333 Smith St., Providence, RI 02908, USA
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