CIGP Closes a $3.2 Million Guarantee for Everytable’s Social Equity Franchise Program
CIGP Closes a $3.2 Million Guarantee to Reinvestment Fund for
Everytable’s Social Equity Franchise Program to Advance Minority Business Ownership and Wealth Creation
These investments over eight years will support business ownership and wealth creation in historically divested communities while increasing access to affordable, nutritious food.
April 14, 2023 – The Community Investment Guarantee Pool (CIGP) closed an eight-year guarantee of up to $3.2 million for Reinvestment Fund in support of Everytable's Social Equity Franchise Program (The Program), managed by impact investing firm Mission Driven Finance. The Program supports business ownership and wealth creation in marginalized communities while increasing access to affordable, nutritious food.
Reinvestment Fund is leading an initial $8 million syndicate of Community Development Financial Institutions (CDFI) lenders in a debt financing for Everytable. Everytable, a public benefit corporation, has a core mission of ensuring everyone everywhere has access to nutritious, fresh food at affordable prices. One approach to pursuing this mission while advancing its social equity objectives is the Everytable Social Equity Franchise Program (SEFP). SEFP involves training and mentorship for entrepreneurs from BIPOC and other underserved communities seeking to own and operate an Everytable franchise. SEFP also helps entrepreneurs secure 100% financing through the Everytable Social Equity Franchise Fund. Mission Driven Finance serves as the Fund Manager.
"Reinvestment Fund is proud to offer additional financing support," said Christina Szczepanski, Reinvestment Fund's Managing Director of Lending and Investments. "We echo Everytable's commitment to creating access to nutritious food for all and are excited for this partnership that furthers our vision of social and racial equity in the food system."
Everytable is committed to providing affordable, fresh, nutritious food in all communities by preparing meals at a central kitchen and distributing them through retail stores, subscription deliveries, contracts with institutions (e.g., hospitals, corporate offices), and SmartFridge vending machines. Currently, there are 52 retail locations in Southern California, eight retail locations in New York City, and one retail location in the Bay Area. To expand access, Everytable plans to open nearly 300 franchises across metropolitan markets in the next four years.
To further its social benefits, Everytable is committed to creating opportunities for these franchises to be owned and operated by entrepreneurs as a way to build wealth for individuals, communities, and families. To do this, Everytable will provide one year of training through Everytable University. Entrepreneurs will work full-time as store managers at a current Everytable location while receiving leadership and entrepreneurial education, mentoring, and coaching regarding relevant business topics. Upon completion, Everytable will match an entrepreneur with a franchise location and provide funding opportunities for entrepreneurs with limited access to personal wealth or capital through the Social Equity Franchise Fund.
"We simply can't fulfill our mission to make nutritious meals affordable and accessible without passionate people supporting our growth and running our stores," said Sam Polk, CEO of Everytable. "This investment will allow us to expand our Social Equity Franchise program and ensure that exceptional leaders graduating from our Everytable University have the capital to become owners and positively fuel our expansion."
"We're thrilled to be supporting Everytable's mission with this Fund. Supporting franchisees who wouldn't normally get a chance at business ownership is directly aligned with our thesis of closing capital gaps in order to close opportunity gaps," said Mission Driven Finance CEO David Lynn.
The Social Equity Franchise Fund will provide franchise financing loans covering 100% of franchise start-up costs to qualified Everytable University graduates. Secured against the franchise, loans require no financial equity from entrepreneurs and have five-year terms. This program is available to successful graduates of Everytable University and allows franchisees to focus on successfully building their business while opening doors to additional entrepreneurial activities that could create intergenerational, familial wealth.
CIGP guarantees a portion of the Reinvestment Fund-led debt facility into the Social Equity Franchise Fund. The Fund is expected to fully deploy loans to entrepreneurs by the end of 2025.
About CIGP
The Community Investment Guarantee Pool (CIGP) is a financing tool launched in December 2019 by impact investing organizations to create a pooled commitment of financial guarantees for intermediaries in affordable housing, small business and climate finance. CIGP accelerates community investments by more fully leveraging philanthropic balance sheets for mission. The initial guarantors that helped make CIGP possible are The Kresge Foundation, The Annie E. Casey Foundation, The California Endowment, Chan Zuckerberg Initiative, Common Spirit Health, Gary Community Investments, Jessie Ball duPont Fund, Phillips Foundation, Seattle Foundation, Virginia Community Capital, and Weingart Foundation. Since launch, the Robert Wood Johnson Foundation, Arnold Ventures, Winthrop Rockefeller Foundation, the California Wellness Foundation and the Sierra Club Foundation have also joined as guarantors. Learn more about CIGP by watching this short video produced by The Kresge Foundation.
About LOCUS Impact Investing
LOCUS serves as program manager for the Community Investment Guarantee Pool. LOCUS is a national non-profit consulting organization and registered investment advisor that works with foundations and mission-driven investors wherever they are on their local impact investing journey to help them create lasting, meaningful change in their communities. LOCUS partners with mission-driven institutions to unlock more of their assets and deploy dollars to catalyze equitable economic development and make community-informed investments guided by innovative, effective and equitable practices. LOCUS is a wholly owned subsidiary of the non-profit, VCC Social Enterprises. For more information about LOCUS visit: https://locusimpactinvesting.org/.
About Everytable
Founded in 2016, Everytable is a mission-driven food company based in Los Angeles that fights for food justice and equality by providing healthy and nutritious food that is both accessible and affordable for everyone. Everytable is a multi-channel, fresh-prepared food business blending stores, subscriptions, delivery and SmartFridges supplied by a central kitchen, with meals priced according to the neighborhood. Everytable serves Southern California, the SF Bay Area, and New York, with more stores and regional meal delivery soon to come.
In 2021 Everytable launched a trailblazing Social Equity Franchise program that sets social entrepreneurs from marginalized communities on an expedited pathway to potentially owning and operating an Everytable store. Everytable further seeks to support local communities with its Pay It Forward program which allows guests to purchase meals for those in need. In 2022, Inc.’s Best in Business list recognized Everytable for positively impacting food insecurity across communities, along with other accolades such as being named one of Fast Company’s top 10 most innovative dining companies. To date, Everytable has sold more than 15 million meals! For more information, please visit www.everytable.com or follow @foreverytable on Instagram.
About Mission Driven Finance
Mission Driven Finance is an impact investment firm dedicated to building a financial system that ensures good businesses have access to sufficient, affordable capital. Built from the ground up with a single purpose—to make it easy to invest in your community—all of their funds and structured products are designed to close financial gaps that will close opportunity gaps. They work with local and national investors to help them create the impact they want and work with businesses and community partners to help them get the capital they need. Mission Driven Finance was launched in 2016 in San Diego, CA, and is a Certified B Corporation. In 2022, Mission Driven Finance was selected for ImpactAssets’ IA 50 Fund Manager list, a category for experienced impact fund managers with a minimum three-year track record. Learn more about Mission Driven Finance at missiondrivenfinance.com.
About Reinvestment Fund
Reinvestment Fund is a mission-driven financial institution committed to making communities work for all people. We bring financial and analytical tools to partnerships that work to ensure that everyone has access to essential opportunities: affordable places to live, access to nutritious food and health care, schools where their children can flourish, and strong, local businesses that support jobs. We use data to understand markets, communities, and impediments to opportunity—and how investment and policy decisions can have the most powerful impact. Since our inception in 1985, Reinvestment Fund has provided over $2.4 billion in financing to strengthen neighborhoods, scale social enterprises, and build resilient communities. Learn more at www.reinvestment.com
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CIGP Closes Multimillion Dollar Guarantee to Inclusive Prosperity Capital
CIGP Closes Multimillion Dollar Guarantee to Inclusive Prosperity Capital (“IPC”) to Expand Residential Green Lending to Low/Moderate-Income and BIPOC Homeowners
The $2.5 million, 12+ year guarantee will expand IPC’s Smart-E Residential Green Lending Program
January 23, 2023 – In late December 2022, Community Investment Guarantee Pool (“CIGP”) announced the issuance of a $2.5 million, 12+ year guarantee to expand Inclusive Prosperity Capital Inc.’s (“IPC”) Smart-E Residential Green Lending Program (“Smart-E Program” or “Program”) and to demonstrate that unsecured residential green lending to predominantly low/moderate-income and/or Black, Indigenous, People of Color (BIPOC) homeowners can be a successful business line for credit unions and other community lenders. CIGP’s guarantee will start at $1 million and expand to $2.5 million as the Smart-E program ramps up. IPC projects that CIGP’s guarantee will ultimately credit enhance nearly 2,000 Smart-E loans over the next four years, totaling about $24 million.
The Smart-E Program creates greater access to the residential clean energy and energy efficiency marketplace for community-based lenders, local contractors, and low- and moderate-income (LMI) homeowners through a comprehensive program that includes:
• Loan product and process standardization
• Online project management tool (called NGEN)
• Contractor screening and oversight.
“We are thrilled to be able to leverage CIGP’s guarantee to bring our Smart-E Program to more communities of color and low and moderate-income homeowners,” said Kerry O’Neill, IPC’s CEO. “CIGP’s support has allowed us to launch our Smart-E national expansion and reflects IPC’s belief that everyone should have access to the benefits of clean energy and resilience, especially those who have been most impacted by climate change and historically have not been well served by traditional lending.”
“Partnering with IPC and community development credit unions to enable low-income and BIPOC homeowners to make green upgrades demonstrates the catalytic value of CIGP’s guarantees for climate equity,” said Jim Baek, CIGP’s Executive Director. He added, “As investments in sustainability accelerate with the enactment of new federal programs, we’re hopeful that initiatives like Smart-E provide the road map and market insights needed to facilitate a just green transition.”
“Inclusiv is proud to connect high-impact credit union lenders with the Smart-E program that will dramatically expand clean energy and energy efficiency lending to low- and moderate-income people and households,” said Cathie Mahon, President/CEO, Inclusiv.
The model for the Smart-E Program operates in three states (Connecticut, Michigan, and Colorado) with 18 active lenders participating. Approved contractors offer 40 different green upgrades, including solar, energy efficiency, HVAC, and more. To date, $500 million in these unsecured loans have been originated, helping over 35,000 homeowners, 45% of whom are LMI.
IPC is now partnering with Inclusiv, the largest membership organization for Community Development Credit Unions (CDCU), and the University of New Hampshire (UNH), as a data and training resource, to expand the Smart-E platform nationally. This expansion is starting in New Mexico, Arizona, and Texas where Inclusiv has 40 CDCU members and another 55 credit unions that are part of its Center for Resiliency and Clean Energy network. These 95 credit unions serve 5.6 million members in the three states with the CDCUs primarily serving LMI and/or BIPOC communities. Nationally, Inclusiv’s network of credit unions serves over 18 million members in various LMI urban, rural, and reservation-based communities and represents over $261 billion of community-controlled assets.
The Smart-E Loans are unsecured, and CIGP will only backstop loans to borrowers with FICO credit scores below 720. If successful, CIGP’s guarantee will demonstrate the degree to which unsecured consumer green lending can be made to a broader set of homeowners beyond the current market focus on higher income borrowers.
While green lending in the US is still primarily focused on upper- and upper-middle-income, largely white, borrowers, IPC’s national expansion of the Smart-E Program, starting in the Southwest, is designed to “democratize” access to green loans; at least 50% of CIGP backed Smart-E loans are expected to be to LMI and BIPOC households. In addition to yielding climate benefits from the reduced use of fossil fuels, successful Smart-E installations will lower energy bills, increasing housing stability and property values for homeowners.
About CIGP
The Community Investment Guarantee Pool (CIGP) is a financing tool launched in December 2019 by impact investing organizations to create a pooled commitment of financial guarantees for intermediaries in affordable housing, small business and climate finance. CIGP accelerates community investments by more fully leveraging philanthropic balance sheets for mission. The initial guarantors that helped make CIGP possible are The Kresge Foundation, The Annie E. Casey Foundation, The California Endowment, Chan Zuckerberg Initiative, Common Spirit Health, Gary Community Investments, Jessie Ball duPont Fund, Phillips Foundation, Seattle Foundation, Virginia Community Capital, and Weingart Foundation. Since launch, the Robert Wood Johnson Foundation, Arnold Ventures, Winthrop Rockefeller Foundation, the California Wellness Foundation and the Sierra Club Foundation have also joined as guarantors. Learn more about CIGP by watching this short video produced by The Kresge Foundation.
About LOCUS Impact Investing
LOCUS serves as program manager for the Community Investment Guarantee Pool. LOCUS is a national non-profit consulting organization and registered investment advisor that works with foundations and mission-driven investors wherever they are on their local impact investing journey to help them create lasting, meaningful change in their communities. LOCUS partners with mission-driven institutions to unlock more of their assets and deploy dollars to catalyze equitable economic development and make community-informed investments guided by innovative, effective and equitable practices. LOCUS is a wholly owned subsidiary of the non-profit, VCC Social Enterprises. For more information about LOCUS visit: https://locusimpactinvesting.org/.
About Inclusive Prosperity Capital (IPC)
Inclusive Prosperity Capital, Inc. (“IPC”) is a not-for-profit investment fund scaling clean energy financing solutions that channels investment capital to program partners in communities that need it most. As a spin-out and strategic partner of the Connecticut Green Bank, IPC is focused on scaling and expanding its successful model nationwide by accessing mission-driven capital and partnerships. IPC operates at the intersection of community development, clean energy finance, and climate impact. For more information about Inclusive Prosperity Capital, please visit https://www.inclusiveprosperitycapital.org.
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New Investments Help Fuel Change
The California Wellness Foundation and The Sierra Club Foundation Join
the Community Investment Guarantee Pool with Million Dollar Commitments
New investments will help fuel change in the fight against climate change, and for environmental justice and health equity
October 4, 2022 – Today, the Community Investment Guarantee Pool (CIGP) welcomed two new guarantors: the California Wellness Foundation and the Sierra Club Foundation. The CIGP is a first-of-its-kind platform that allows foundations and other impact investors to combine resources and expertise by establishing a one-stop-shop for intermediaries and other market participants in the climate, affordable housing and small business sectors to access highly flexible guarantees. The addition of the California Wellness Foundation and the Sierra Club Foundation will increase the Pool’s capacity to backstop innovative affordable housing, small business and climate change finance solutions.
The California Wellness Foundation has joined the CIGP with a $5 million guarantee commitment.
“Through both our grantmaking and our mission-aligned investment strategy, the California Wellness Foundation is committed to advancing health equity by promoting affordable housing and entrepreneurship opportunities,” said California Wellness Director of Investments, Anabel Giron. “Our $5 million investment in CIGP will help us advance our goals in these areas and bring much needed capital to under-resourced communities. We appreciate CIGP’s expertise and capacity to execute on its mission.”
The Sierra Club Foundation has joined the CIGP with a $1 million guarantee commitment.
“The Sierra Club Foundation is deeply committed to finding all tools of impact and finance to address climate change and environmental justice, and our $1 million investment in CIGP is one of the ways we are doing that,” said Sierra Club Foundation Executive Director, Dan Chu. “This is an emerging area of impact investing and we’re excited about the ways our early investment will act as a catalyst to attract other investors to support climate justice."
“Whether we’re talking about accessing capital for small businesses or being able to transition to cleaner sources of energy, we know that opportunities have been distributed in ways that reflect the inequities embedded in our society, and that addressing these challenges will require bringing to bear all of the resources and tools at our disposal,” said CIGP Executive Director, Jim Baek. “Together, this group of guarantors is making more and new types of community development transactions possible by putting more of their balance sheet strength to work in service of impact and equity. We are thrilled to have the California Wellness Foundation and the Sierra Club Foundation join us on our mission and look forward to working together.”
About CIGP
The Community Investment Guarantee Pool (CIGP) is a financing tool launched in December 2019 by impact investing organizations to create a pooled commitment of financial guarantees for intermediaries in affordable housing, small business and climate finance. CIGP accelerates community investments by more fully leveraging philanthropic balance sheets for mission. The initial guarantors that helped make CIGP possible are The Kresge Foundation, The Annie E. Casey Foundation, The California Endowment, Chan Zuckerberg Initiative, Common Spirit Health, Gary Community Investments, Jessie Ball duPont Fund, Phillips Foundation, Seattle Foundation, Virginia Community Capital, and Weingart Foundation. Since launch, the Robert Wood Johnson Foundation, Arnold Ventures, Winthrop Rockefeller Foundation have also joined as guarantors. Learn more about CIGP by watching this short video produced by The Kresge Foundation.
About LOCUS Impact Investing
LOCUS serves as program manager for the Community Investment Guarantee Pool. LOCUS is a national non-profit consulting organization and registered investment advisor that works with foundations and mission-driven investors wherever they are on their local impact investing journey to help them create lasting, meaningful change in their communities. LOCUS partners with mission-driven institutions to unlock more of their assets and deploy dollars to catalyze equitable economic development and make community-informed investments guided by innovative, effective and equitable practices. LOCUS is a wholly owned subsidiary of the non-profit, VCC Social Enterprises. For more information about LOCUS visit: https://locusimpactinvesting.org/.
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