Ecological Revolving Loan Fund Info Sheet
WHAT IT IS
CRSP’s Ecological Revolving Loan Fund (ELF) is a small community loan fund used specifically for acquiring and ecologically retrofitting property in the two block L.A. Eco-Village neighborhood and/or making loans to small green cooperatively oriented businesses started by LAEV members and/or associated CRSP businesses. It is a socially responsible investment (SRI) opportunity that has borrowed and paid back close to two million dollars in the past 30 years.
WHY LOAN TO THE ELF
Many people are unhappy with their mainstream banks, and with other conventional investment opportunities of stocks, bonds, hedge funds and whatnot. ELF interest rates may be higher than conventional interest rates on cash such as money market accounts, savings and certificates of deposit. Conventional loans, also, are used for who knows what and who knows where, doing damage to who knows who and what and where. ELF lenders know where their money is. They have an open invitation to visit LAEV and see what their money is doing: building a stronger, more sustainable and resilient demonstration neighborhood that has been influencing other sustainable community initiatives locally and worldwide for more than 25 years.
HOW IT WORKS
Individuals or organizations who are already in relationship with CRSP, the Beverly-Vermont Community Land Trust (BVCLT) or Urban Soil/Tierra Urbana (USTU) explore the ELF guidelines noted below. ELF accepts loans starting at $5,000 and up to $100,000. Our current interest rate on loans is 1.5% simple and paid out quarterly or annually. However, on new acquisitions, we may negotiate some higher interest rates, depending on the situation. Lenders to ELF determine the amount they feel comfortable lending and the term of their loan. We encourage potential lenders to talk with other lenders before making a decision to loan. You can designate what project you would like your loan applied to. Loans are paid back from mortgages CRSP currently holds on LAEV properties, other loans coming in, and/or charitable donations to CRSP.
CRSP has recently acquired a new property in the north end of the LAEV neighborhood at 3554 W. First Street and Bimini Place, an old auto repair shop and café. CRSP plans to redevelop this property. If you are interested in exploring a loan for pre-development expenses, feel free to request a DRAFT plan on the project from Lois (mailto:firstname.lastname@example.org or 213/738-1254).
CURRENT OPPORTUNITIES YOUR LOAN COULD APPLY TO
– Pre-development expenses for redevelopment of auto shop and cafe in the LAEV neighborhood
– LAEV Family Child Care Service – 2017
– Solar photovoltaic electric installations on LAEV buildings – 2017
– Street plaza project – 2018
– Vegan and vegetarian café, worker co-op – 2017-2018
– White House Place Learning Garden – on-going
– Small green cooperative oriented businesses in LAEV – on-going
– Any of the above
ELF GUIDELINES FOR LENDERS
- Term of Loan*
ELF Loans are for 18 months, 3 years, 5 years or 10 years. Can be reviewed annually.
You select your own term!
- Interest Rates*
Current rate (2016 – 2017) is 1.5%. Interest on loans is paid quarterly (every three months). Principal is paid at the end of the loan period, unless alternative arrangements are made.
Interest rates may be re-negotiated at the expiration of an initial loan period or upon 60 days notice from CRSP.
- Loan Amounts*
Loan amounts start at $5,000 and go to $100,000. You select the amount that suits you!
- Use of Loan Monies*
Currently, 2016-2017, your loan will be used for pre-development expenses on the recently acquired auto repair shop and café, unless otherwise designated. Our plan is to redevelop the property into a car-free mixed use permanently affordable environmentally sensitive cohousing community, along with small place based co-op oriented businesses. This development will provide livelihood opportunities for people who live in LAEV. Examples of small green businesses that have been incubated in LAEV or are currently incubating include the Relampago Wheelery, Bicycle Kitchen, Cafecito Organico, the Food Lobby co-op, the LAEV Art Studio, the LAEV Sewing Studio, the LAEV Arts & Crafts store, the Arroyo Seco Network of Time Banks, and the LAEV Family Childcare Service. ELF was also the vehicle for acquiring 50 units of permanently affordable housing in the Los Angeles Eco-Village.
- Loan Security and Payback Sources*
Loans are made to CRSP (ELF) and are not generally recorded as liens against any property CRSP now owns or might purchase. Loans are secured by a loan agreement. Loans are paid back from mortgages CRSP currently holds on LAEV properties, other loans coming in, and/or charitable donations to CRSP.
- Talk with Others Who Have Loaned*
You are encouraged to talk with other lenders to the ELF, and ask them about their process in making the decision to loan. Contact Lois (213/738-1254) for a phone list or email addresses and phone numbers of other lenders.
- Loan Agreement*
- Where to Send Checks*
Checks should be made out to CRSP and sent to:
117 Bimini Place #221
Los Angeles, CA 90004.
Electronic transfers can also be arranged.
More info: contact Lois at 213-738-1254 or email@example.com
DONATION POSSIBILITIES: And remember, if you’d rather make a tax deductible contribution, the family of LAEV development organizations–CRSP, the Beverly-Vermont Community Land Trust and the Urban Soil-Tierra Urbana Housing Co-op–are all 501.c.3 tax exempt corporations. Consult your accountant or tax attorney to determine what could be a major tax savings when you donate cash, stocks, bonds or property to a 501.c.3 corporation.
TEMPLATE FOR THE ELF LOAN AGREEMENT
updated November 2016