Resolved, That the Coalition for Human Needs is authorized to administer the National Episcopal Fund for Community Investment and Economic Justice established by the Council at its November 1989 meeting and to make loans from this fund pursuant to the following criteria recommended by the Economic Justice Implementation Committee:
- Each loan shall be for a project that conforms to the Council's criteria for "Economic Justice Grants."
- The loan shall be made to a small, medium, or large intermediary, such as a diocese, community development bank, other loan fund, or community-based agency, for a project approved by CHN, rather than directly to an individual borrower.
- Each loan shall be evaluated as to the capacity of the borrower to comply with the particular repayment schedule and the eventual repayment of the loan, while recognizing that a goal of the economic justice program is to support and encourage newly formed intermediaries which may not yet have developed any credit history.
- The rate of interest on the loan may vary up to market, depending upon the kind of loan and the need, with the intent of being flexible to meet emergency situations.
- The term of the loan shall not exceed 10 years.
- The proceeds of the loan shall be used to leverage similar funding from other sources, if feasible.
- All applications from individual projects shall be subject to the advice and signature of the bishop of the diocese where the project is located; provided, that in the case of a project located in a diocese in Province IX, in order to demonstrate a commitment to the appropriate loan needs and program structure of Province IX, the loan shall only be made with the advice and written consents of the bishop, the Diocesan Social Betterment Committee, and The Provincial Social Betterment Committee.
- The amount of the loan shall not exceed $100,000 and shall be consistent with the goal of having the average loan be in the $25,000 to $35,000 range.
- The subject of the loan shall be consistent with the policy that a significant percentage of loans made in any year shall be for projects in the area of housing (with other areas of funding including, but not being limited to, non-profit community-based entrepreneurial venture capital projects and micro-enterprise projects).
- Loan recipients (i.e., intermediaries) will agree to report regularly (at least quarterly) to CIA, with a copy to EJIC, as to the status of the loan, principal balance, use of proceeds, details of servicing, existence of any problems or repayment difficulties, and any other matter affecting the security of the loan or the viability of the project; and be it further
Resolved, That the Economic Justice Implementation Committee shall periodically review these criteria and submit to Council any proposal revisions.
