||Craft3, created in 1995, strengthens economic, ecological, and family resilience in Pacific Northwest communities by providing loans and business assistance to entrepreneurs, nonprofits, individuals, and others who lack access to traditional financing. The fund has invested USD 208 million in more than 2,200 individuals, businesses, and social and civic ventures that represent new strategies for economic security and ecological health.Craft3 offers four main loan products: 1. Commercial loans, to finance commercial real estate, start-ups and expansions, working capital, acquisitions, inventory, fixtures, equipment, and related business property2. Community development loans, to finance nonprofit organizations engaged in affordable housing, community development projects, healthcare, childcare, environmental conservation, and human services3. Conservation loans, to acquire sensitive lands, restore habitat, and protect water quality 4. Consumer loans, designed to help homeowners upgrade their septic systems and improve their homes' energy efficiencyIn addition, the fund's Indian Country Initiative provides financial products and services to Native American communities. It makes loans to individually-owned Native American businesses, tribal enterprises, tribal governments, and nonprofit organizations to support business startup and expansion, trust land acquisition, and fishing/seafood, forestry, and human services ventures. Calvert Foundation's investment supports all of the fund's loan products except consumer lending. Craft3 has been a Calvert Foundation borrower since 1998.
|Motivations for investment
||Craft3 is one of the leading CDFIs in the Pacific Northwest, with investments in both urban and rural areas. It focuses lending on triple-bottom line enterprises and has a scorecard system to measure the environmental impact of its loan products. Since inception Craft3 has made capital investments and provided services that have created and maintained over 5,100 jobs and has leveraged an additional USD 550 million in investment. Additionally, Craft3 has been particularly innovative in crafting specialized loan products, such as consumer loans for septic improvements and energy efficiency retrofits and loans designed to serve Native American businesses. Craft3 has a strong balance sheet with net assets (or equity) historically over 30 percent of total assets, positive surpluses from operations in 2006-2011, a strong management team, and stable portfolio performance, maintained through the period of economic recession that began in 2008. The fund has a broad range of public and private sector investors and a high historic investment renewal rate, contributing to its solid capital base. For example, in addition to loan program income, the fund manager earns fee income by originating and managing off-balance sheet assets, such as its New Market Tax Credits allocation.