Southeastern Connecticut Fund for Land Equity
Invest in Your Community,
Borrow for Local Projects &
Support Fair Access to Capital
through the
A collaboration between Equity Trust, Inc. and the SE CT Community Land Trust
Origins of the Loan Fund
In 2007, the Francis Fund for SE CT was formed by St. Francis House in partnership with Equity Trust, Inc., a nationally known community loan fund with roots at the Voluntown Peace Trust. Between 2010 and 2020, 15 loans totaling $1,381,000 were made, including one to purchase the first SE CT Community Land Trust home in New London.
In 2021, with the support of St. Francis House, a new partnership was formed between Equity Trust and the SE CT CLT to support the work of the CLT. That new partnership is the SE CT Fund for Land Equity; its first loan was made that same year.
Socially Imaginative Investing
An Opportunity for Individuals with Savings, Faith Based Congregations with Endowment Funds, and Financial Institutions committed to Socially Responsible Investment: The SE CT Community Land Trust holds land for the development and stewardship of permanently affordable housing, land for food production, green space and facilities for community organizations. The SE CT Fund for Land Equity provides acquisition, development and bridge loan funds so that opportunities can become realities.
Social investment loans are unsecured investments, but funds from lenders are pooled so that risk is shared. Equity reserves and an excellent history of repayment from borrowers reduce risk to lenders. In over 25 years of operation, the Equity Trust Fund of which the SE CT Fund for Land Equity is a part, has never failed to repay lenders.
We look forward to hearing from you!
Borrowing from the Fund
Eligible Projects include the acquisition of land or conservation easements, capital improvements, construction, equipment, predevelopment, refinancing, and working capital.
Priority is given to projects committed to permanent affordability through the community land trust model.
Loan Amount: Usually between $5,000 and $150,000 with 5-7% interest rates. Collateral is required.
Loan Term: Typically up to five (5) years. Longer terms may be considered.
Approval Speed: Turnaround time can be as little as two months upon completion of the loan request form.
Initiation Fee: $200 or 1% of the value of the loan, whichever is larger.
How to Borrow: Download and fill out a Loan Request Form and email it to loanfund@sectclt.org. Following initial
review, if we are able to consider your request, you will be asked to provide additional financial information.
Lending to the Fund
Minimum Lending Amount: $1,000
Lending Term: At least one (1) year
Interest Payment: Paid annually; may be added to principal. Interest paid is reported to the IRS and will be taxed by state and federal governments.
Interest Rate: The lender may choose to receive a fixed-rate annual simple interest return up to 1% for a loan with a term of one year. An optional 0.25% per additional year is available for longer term loans, up to a maximum of 2% for loans committed for a term of five or more years. Many lenders choose a lower rate including 0% interest in order to support the goal of equitable access to capital.
How to Lend: Complete & send a Loan Offer form to Equity Trust. If you need help completing a form, please email us. See the back of this brochure for all contact information and links to forms.
Links to Loan Forms & Printable Brochure
Contact Information
SE CT CLT Loan Fund Review Committee
loanfund@sectclt.org
860-772-4012