CNote has updated the interest rates for two of our offerings. These changes will only apply to new investors, existing investors will remain at the rates reflected in their executed investment documents.
These changes are a function of historically-low interest rates prevalent across financial markets and in response to feedback from our community-lender partners regarding capital costs and their ability to lend on various financing terms.
It is our belief that these changes strike a strong balance between offering CNote investors competitive and impactful financial investments and assuring that our community-lender partners have a sustainable capital source that allows them to deliver on their promise of building a more inclusive and fair financial system for underserved communities and borrowers.
What are the changes?
CNote has made the following changes for prospective investors in these offerings:
- The Flagship Fund rate is moving to 2.50% from 2.75%.
- The Wisdom Fund is moving to 1.00% from 3.50%.
Who are these changes applicable to?
These changes are only applicable to new investments. Existing investors with outstanding investments will not be impacted by these changes. If an existing investor initiates a new investment into a CNote product or rolls over an existing CNote investment upon maturity those investments would be at these new rates.
Why is CNote making these changes?
The primary reason we are making these changes is to assure our community lender partners have access to sustainably-priced capital so they can provide financing to their communities on competitive terms and at rates that support their growth. We detail additional reasons for each offering below.
The Wisdom Fund aims to empower and build wealth for female-BIPOC entrepreneurs through small business ownership. In the historically-low interest rate market and uncertain economic times, CNote wants to ensure that our community-lender partners are not lending to women-of-color borrowers at a higher rate than for other demographics. Doing so would directly contradict the objective of the offering and impair the ability of our community partners to deploy sustainable financing to those end borrowers.
The move to 1.00% assures the downstream women-of-color borrowers have equal access to fair capital and supports the sustainability of our community-lender partners.
In the long run, we believe this change is the correct one as it best aligns with our company’s mission of closing the wealth gap and this offering’s objective of supporting entrepreneurship by women of color across America.
The Flagship Fund is a diversified CDFI investment that offers flexible liquidity and has a broad impact mandate. Over the last year, CDFIs have been highlighted and pursued by investors and philanthropic funders as an efficient and financially responsible tool to reach their impact goals. A change in suggested return to 2.5% is justified given the interest rate market overall and the recent funding dynamics in the CDFI industry.
I have additional questions, who should I contact?
Inquiries from institutional investors should be directed to firstname.lastname@example.org.
For retail or existing investors, please contact email@example.com.
You can also contact CNote toll-free at: (800) 449-6275