FAQ

FREQUENTLY ASKED QUESTIONS: DIRECT PUBLIC OFFERING

Who can invest?

Anyone in California can invest up to $2,500. Larger investments can be made by qualified investors.

How do I decide how much to invest?

The minimum investment is $1,000 and maxes out at $2,500 for those who qualify on income and net worth can invest up to 10% of their net worth. The decision to invest should based on the amount the investor is willing to lose and able to keep in the investment for 6 years. Read more about investor eligibility requirements.

Is it a risky investment?

The DPO mitigates risk by matching investments with grant funding and portfolio insurance. Although EDFC will use as many strategies and programs to mitigate risk, there is chance that investing in the promissory notes will result in the loss of the entire investment.

What is the Return on Investment (ROI)?

The notes will pay 2% per year, simple interest, with principle returned at the end of 6 years.

What are the Repayment Terms (aka When do I get my money back)?

Investors will receive annual interest payments, with first two years accrued and deferred paid out in equal installments over the remaining four years. For example:
A $10,000 investment would pay $200 per year. First two years accrue $400 which then are paid out over the remaining four years, making the payments $300.

What if you don’t reach the $250k goal?

The funds will be returned to the the investors without interest.

Why trust EDFC with my investment?

EDFC has been operating since 1995, and has made over 68 loans totaling $4.2 Million dollars to local businesses. EDFC’s board of directors has over 210 year of combined experience in finance, and over 60 combined years running small businesses. EDFC is a Brown-Acted organization so all of its operations are transparent.

Why would I invest in this vs. other Socially Responsible Investments?

This is the first local investment mechanism that is targeted to Lake and Mendocino Counties. EDFC’s board experience with business, finance, and the community allow for more focused social impact.  When you move you move local you get more than just a dividend – studies have shown that local businesses have 42 cents on the dollar economic impact compared to 15 cents for non-local.

What is the advantage to moving my money out of a CD, Savings Account, or off of Wall Street?

This return is higher than a CD or savings account, but are higher risk. Wall St, may or may not give a higher return, but there is no local impact & benefit. The ideal investor is someone that has money sitting in a CD or saving account and values a social return on investment.