Impact Community Capital Frequently Asked Questions Page



	Frequently Asked Questions
	What is Impact? Who are Impact's Current Investors? Why was Impact Created? What Investments has Impact Made? What's unique about Impact?
			Why should Insurance Companies participate? Do Community Investments exist that offer reasonable rates of return? How will Impact directly benefit Communities? How does Impact differ from COIN?
	Q: What is Impact? Impact Community Capital LLC was formed to create socially responsible insurance company investments in California's low-income communities. The first venture of its kind in the United States, Impact has proved to be a dynamic, effective vehicle on behalf of its insurance company members. Investor/members that own Impact set investment policy and actively participate in investment decisions. Impact has attracted over $1 billion in investment commitments to date. The commitments are targeted towards multi-family affordable housing, including workforce housing, and economic development. Back to Top Q: Who are Impact's Current Investors? Impact Members represent almost 30% of the insurance premium dollars written in California. Key investors are Allstate Insurance Company, Farmers Insurance Companies, Nationwide Mutual Insurance Companies, Pacific Life Insurance Company, Safeco Insurance, State Farm Insurance Companies, Teachers Insurance and Annuity Association, and 21st Century Insurance Company. Membership in Impact is open to qualified insurance companies. Back to Top Q: Why was Impact created? Impact was created as a vehicle for insurance company investor/members to support development of California's diverse communities, especially those that have been historically underserved. Impact's investments now have benefited communities across the nation. Impact believes a voluntary community investment program directed by insurance companies can most effectively identify and implement meaningful community investments that are also safe and sound investment opportunities. In recent years, the California Legislature and legislatures in other states have considered proposals to mandate insurance company investments in underserved communities. Impact believes a voluntary effort, managed responsibly by insurance companies and staffed with experienced, professional and committed leaders, will better serve communities. Underserved communities have a far greater potential to rebound when infused with prudently invested capital, rather than forced subsidies. Back to Top Q: What investments has Impact made? Impact Investments Back to Top Q: What's unique about Impact? Impact has pioneered the securitization of community investments. By standardizing and pooling investments for insurers, Impact enables investment grade ratings for large portions of its investment pools. Impact creates innovative structures leveraging tax credits to enable safe investments in deep-reach community activities, such has childcare. Back to Top Q: Why should insurance companies participate? It's good business. Through the issuance of rated, investment-grade securities, Impact has the capacity and flexibility to finance transactions that are not themselves rateable. Impact also has the professional staff and expertise to source and structure complex community investments. This practice is opening new markets and creating opportunities for investment. Impact has become a valuable resource to insurance company investors. Back to Top Q: Do community investments exist that offer reasonable rates of return? Yes. A report prepared by The Development Fund of San Francisco for Impact's investor/members concluded that the industry could meet a wide array of community capital needs while maintaining reasonable rates of return on their investments. The report identified three market segments that offer the highest potential for collaborative insurance company investment: multi-family affordable housing, small business investments and community- based projects. The report noted that while these investment opportunities exist, they are often structured in a complex and idiosyncratic manner. Impact's President & CEO, Dan Sheehy, is nationally recognized for his ability to find innovative solutions posed by complex private/public insurance company investment transactions. Impact's initial investment in affordable housing has proven that The Development Fund was right. Back to Top Q: How does Impact directly benefit communities? By purchasing loans and making investments, Impact both provides and frees up capital that can be invested in facilities and programs that provide real benefits to low income individuals, families & communities through affordable housing, health care facilities, child care centers, community centers and investments in vital small enterprises. Back to Top Q: How does Impact differ from COIN? The California Organized Investment Network (COIN) is an organization within the California Department of Insurance that primarily acts as a clearinghouse to inform insurance companies about investment opportunities in low-income communities. Impact is an independent initiative created, owned and funded by insurance companies. Impact has the capital to acquire viable performing investments within targeted communities. Information on Impact investments are provided to COIN. Impact is a certified Community Development Financial Institution (CDFI) pursuant to guidelines established by the California Organized Investment Network (COIN) and all investments meet the requirements of the COIN program. Back to Top Links to other websites are provided solely as a convenience and are not endorsed by Impact Community Capital, its affiliates, its management, and/or its third-party providers or distributors who shall not be responsible for the content of any other websites and make no representation or warranty regarding the contents or materials on such websites. Access to other websites is at your own risk.