Community impact through

PROGRAM RELATED INVESTMENTS

The Power of Program Related Investments

Over the years, the Foundations have financed Program Related Investments (PRIs) to provide flexible, low-cost capital to charitable organizations as a way to leverage philanthropic dollars. The Foundations use PRIs to stretch their financial resources and enhance philanthropic impact.

RENEWABLE FUNDING SOURCE

Because PRIs are loans, the dollars are recycled back into the community as they are repaid. The Foundations partner with nonprofit intermediaries to invest in areas like job growth and affordable housing.

CAPITAL & SOCIAL RETURNS

PRIs create both capital and social returns. PRI loans support the mission of an organization and are structured to return the initial investment, along with a modest financial return.

PRI Portfolio

Results through 2018
ECONOMIC OPPORTUNITY

PRIs support economic vitality through business growth and job creation. With these funds, as original loans are repaid, dollars are recycled back into the community through new loans.

366

NEW JOBS

created, with 70% held by people of color

623

JOBS

retained

113

JOBS

projected

AFFORDABLE HOUSING

PRIs support improved access to affordable, quality housing for low-income families and individuals.

320

UNITS

of affordable rental housing preserved

36

HOMEOWNERSHIP OPPORTUNTIES

secured

2

FAMILIES

purchased homes secured with PRI funds

Real stories, real results

METROPOLITAN ECONOMIC DEVELOPMENT ASSOCIATION (Meda)

PRI loan amount: $1,063,000

Loan period: 2014–2024

Meda provides loans and technical assistance to business owners of color as they expand operations and create new, living-wage jobs in the East Metro. To date, all business loans made through the initial PRI investment have been repaid to Meda. Those dollars are now cycling back into the community as new loans.

NEIGHBORHOOD DEVELOPMENT CENTER (NDC)

PRI loan amount: $1,063,000

Loan period: 2014–2024

NDC stabilizes neighborhoods by providing loans and technical assistance to help businesses grow, often including the purchase of the building in which the business operates. Keeping existing businesses within their communities supports the local economy and workforce.

MODEL CITIES BROWNSTONE

PRI loan amount: $2,500,000

Loan period: 2015–2025

Model Cities is a 35-unit, mixed-use development located at the Victoria Station light rail stop in Saint Paul. Once traditional support for affordable housing was secured, Model Cities received PRI support for commercial development on the building’s street level.

TWIN CITIES HABITAT FOR HUMANITY

PRI loan amount: $1,000,000

Loan period: 2017–2027

Twin Cities Habitat for Humanity is leveraging PRIs to address a critical need for affordable housing in the East Metro. With PRI funding, Habitat can be nimble in purchasing, building and rehabbing affordable properties. The loan dollars return to Habitat as homebuyers secure mortgages to purchase their homes.

COMMONBOND COMMUNITIES

PRI loan amount: $1,000,000

Loan period: 2017–2027

Preserving existing affordable rental housing is another way to create accessible housing opportunities. CommonBond Communities has raised more than $4.2 million for its CommonBond Housing Opportunity Fund to support the acquisition of naturally occurring affordable housing. With PRI dollars from the Foundations, CommonBond is purchasing a property that will preserve an additional 136 units of low-income rental housing.

MORE PRI RESOURCES

PDF File
PRIs at a Glance

View information about the Foundations' Program Related Investments (PRI) program at a glance.

PDF File
Program Report

View the full Program Related Investments (PRI) report for years 2014-2018.

Linked Resource
East Metro Job Creation Loan Fund

Read more about the Foundations' partnership with Meda and NDC.

Linked Resource
PRI Success

Read how one business owner used PRIs to grow his business.