Michigan Impact Connection

Join with other impact investors to meet increasing demand for IFF loans throughout Michigan. Choose your amount, rate and term for high impact in your community!


About IFF

IFF was founded in 1988 to finance nonprofits in low-income communities that were unable to obtain loans to own and control their real estate.

IFF’s mission-driven approach meets the long-term credit needs of nonprofits by offering affordable interest rates and flexible terms — including covering up to 95% of project costs, 15-year terms, no financial covenants, and no prepay penalties.

The support of funders and investors has been critical to IFF’s success — our partners have consistently helped build IFF’s capacity, which in turn enables IFF to meet the growing demand for specialized loans. IFF’s economic model uses equity grants as leverage to borrow capital at affordable rates from foundations, faith-based entities, and regulated financial institutions of all types.

As of December 31, 2019, IFF has:

  • 97 investors providing critical below-market capital
  • $393 million in our current loan portfolio
  • $854.5 million in total managed assets
  • $1 billion of cumulative financing disbursed to nonprofits across
  • 10 states since 1988
  • 100 percent principal and interest repayment record to IFF investors
  • 12 years of the highest possible rating for impact and financial strength from AERIS, the national rating agency for community development finance


IFF’s Commitment to Michigan

IFF opened its Michigan office in 2014 and is a 501©3 corporation with Michigan tax-exempt status. In its first six years (2014-2020), it closed 134 loans totaling more than $88 million — capital that flowed to more than a dozen cities throughout the state.

As of January 2020, our Michigan-based staff totaled 17 — four specifically dedicated to our lending program, with others working in real estate consulting, real estate development, and research and evaluation.

Impact Connection seeks to raise $5 million in impact investments — from Michigan investors and for Michigan nonprofits. Impact Connection responds to the demand from foundations and other investors seeking impact investing opportunities that have been professionally underwritten.


Benefits for Michigan Investors

Benefits for investors include:

  • There are no fees or costs — IFF lends 100% of all invested capital to qualified borrowers in Michigan
  • Investors choose an amount from $25,000 to $2,500,000
  • Investors select the rate and term that best meet their investment needs
  • Investors receive detailed reports on impact and financial performance
  • IFF encourages collaboration from investors in identifying prospective borrowers
  • Investors will have full recourse to IFF
  • IFF can use its own funds to complete financial packages for larger transactions and can bring banks or other investors to the project


IFF’s Investors

Initially established with a $2 million grant from the Chicago Community Trust more than 30 years ago, IFF today has raised more than $1 billion in combined grants and loans from foundations, banks, government agencies, faith-based institutions, and other socially responsible investors. Some primary sources of our capital include:

  • CDFI Fund: As a U.S. Treasury-certified community development financial institution, IFF has historically received equity grants from the federal CDFI Fund, which leverages significant debt from investors.
  • New Markets Tax Credits: IFF has also received regular New Markets Tax Credits allocations and participates in other debt-based opportunities targeted to low-income communities. These funds are available across IFF’s 10 states based on project criteria.
  • Investor Consortium: IFF established a match-funded Investor Consortium in 2004 that provides approximately 45 percent of loan capital deployed each year. Forty-six banks invest in the consortium; loans that qualify are based on underwriting criteria for collateral.


IFF’s Impact Reporting

Investors will receive comprehensive annual reports that include:

  • Lending highlights, including key figures such as the number of loans closed, amount of loans closed, capital leveraged by your investments, and square feet of real estate developed as a result of your investments
  • Social impact metrics that look at what the nonprofits receiving our loans are able to produce with the help of our financing — creating or preserving student seats, child care slots, patient visits, and housing units
  • Stories highlighting some of the loan recipients and their mission-driven work in Michigan communities


IFF’s Underwriting

As nonprofits operating in low-income communities, IFF’s borrowers cannot be analyzed through conventional indicators that are better suited for for-profits and/or those operating in economically vibrant communities — such as real estate valuations, industry standard payments for services, or retained earnings expectations. IFF’s underwriting is designed to accommodate or respond to these factors — enabling both lending and impact where it is most needed.

IFF loan products have important features for nonprofit borrowers:

  • Fully amortizing loan up to 15 years, enabling clients to own the property outright by the end of the loan term instead of continuously refinancing
  • Loans from $10,000 to $7 million
  • Financing up to 95% of project costs for loans up to $3 million
  • No appraisal required for loans up to $3 million
  • Combined construction and permanent loans
  • No prepayment penalty
  • Subordinate position, leasehold financing, and equipment loans available

IFF does not generally lend to start-ups, but will lend to bridge capital campaigns, will make other short-term loans against confirmed income, and under certain conditions will make unsecured loans.

Impact is measured through a broad lens. IFF loans improve quality, add space to serve more residents or participants, and strengthen the balance sheet. IFF borrowers serve families, children, single parents, seniors, disabled persons, veterans, the formerly incarcerated, job seekers, education seekers, teens, addicts working to recover, artists helping communities find a voice, and more. Each loan is an opportunity to change one life and many lives.


For more information

Chris Uhl
Executive Director, Eastern Region
gro.ffi@lhuc | 313 309 7825
3011 West Grand Boulevard, Suite 1715
Detroit, MI 48202

Suza Leao-Reuter
Chief Financial Officer
gro.ffi@retuer-oaels | 312 596 5119
333 South Wabash Avenue, Suite 2800
Chicago, IL 60604


Past performance is no guarantee of future results. IFF may restructure loans experiencing repayment difficulties.


Download Our Private Placement Memorandum

IFF Impact Connection Notes are available for investment only to residents of, and entities organized in, Michigan that qualify as Accredited Investors.

Request PPM

    By checking this box, I agree that I am a resident of Michigan, or represent an entity organized in Michigan, and am eligible to receive the Private Placement Memorandum (PPM).