Social Impact Fund
The RIN-CEO Social Impact Fund will be used as loan capital by the International Rescue Committee’s Center for Economic Opportunity (CEO) and deployed directly to borrowers through the offices of the International Rescue Committee (IRC). Eighty percent of borrowers from the fund are expected to be refugees, with the remaining 20% supporting other Americans, often from neighboring communities. The loans will help borrowers build credit, start businesses, buy cars, pay for workforce training, and support financial health. The Social Impact Fund is a R5: Lending Facility refugee investment.
RIN will help structure the Social Impact Fund by aligning it with its Refugee Lens and building a robust impact evaluation practice for measuring these investments. Further, RIN will elevate borrower’s success stories in an effort to empower these voices and change the often negative narrative surrounding refugees.
CEO guarantees investment returns of up to 2% for investors and raised $1.5M in its first round of funding.
Use of Funds
Funds raised will be added to the CEO capital pool and deployed directly to individuals participating in local IRC financial inclusion and asset-building programs. CEO anticipates originating 400 loans from the RIN-CEO Fund within 12 months;
All loans will be made in partnership with local IRC offices and programs. At least 80% of borrowers will have entered the U.S. as a refugee (R1 Refugee Investment);
Funds will be used to source credit-building, auto, education, business and personal loans and help fuel CEO’s planned 2020 expansion into five new IRC offices spread out across the U.S.
Expected Impact
- At least 250 borrowers will establish or increase their FICO credit score. For those refugees or other newcomers to the U.S. that have no credit score, the average score achieved after loan repayment will be 640;
- At least 75 borrowers will finance a reliable, used vehicle to support work commute or to hlep generate additional income from ride-sharing mobile apps (Uber/Lyft/Postmates, etc);
- At least 75 refugee-owned businesses will receive financing of between $500 – $50,000;
- Enhanced financial fitness after participation in required IRC Financial Inclusion programs, as measured by the Consumer Protection Financial Bureau’s rigorously-researched Financial Well-Being Scale.