CNote’s Triple Protection Plan consists of three layers of capital protection built into your CNote investment to help reduce the risk of loss.
First, our CDFI partners have a general recourse obligation with CNote which means they are obligated to pay CNote back even if their borrowers are unable to repay their loans. We negotiated this contractual obligation with our partner CDFIs to assure extra protection for our customers. Customer satisfaction is our number one priority and providing you a transparent and safe financial product is paramount.
Second, state and federal programs exist to protect capital invested in CDFIs. For the CDFIs participating in these programs (all CNote partner CDFIs are participating members), a portion of the loans that CDFIs extend to small businesses are covered. CDFIs are required to maintain their own loan loss reserve fund to be eligible for those protection programs. So not only are a portion of the loans protected by the government, but individual CDFIs also carry a loss reserve.
Finally, CNote has established a loan loss reserve fund for additional peace of mind for our users. This means that if for some reason one of our CDFI partners suffers unexpected losses, and the other fail safes listed above don’t cover them, CNote will step in with its own loss reserve fund to cover some or all of those losses.
CNote's Triple Protection Plan significantly reduces the risk of principal loss. Yet, it is important that all savers recognize that any investment carries some level of risk.
What if I Have More Questions?
Deciding what to do with your money is hard. The world of finance, with all its insider language, doesn't make it any easier. At CNote we want you make the best decision for YOU. We try to make finance simple and transparent, but if there is anything confusing or unclear and you have questions, please contact us at firstname.lastname@example.org, or call us at (424) 26 CNOTE (26683).
There are no stupid questions. Ask away!