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Social Investment Loan Terms

For detailed information about CFNE’s Social Investment Loan product, please contact us to request a prospectus and discuss if our Fund meets your needs.


Social investment loans to the Cooperative Fund are provided on terms chosen by the investor within a range of options including:

Amounts:         $1,000 - $1,000,000
Investment:     Unsecured Loan, Promissory Note
Term:               One year minimum; no maximum
Rate:                Zero to 1.25% simple interest



The Fund encourages long-term investment. Social investment loans, however, may be called for repayment within a short period of time. For those that are particularly large, the Fund asks that repayment be limited to fifty thousand dollar increments within each 30-day period after it receives notice of withdrawal.


Social investment loans are not insured in any way or collateralized through secured interests in any property of the Fund. They rest only on the general credit of the Cooperative Fund of New England. Social investment loans are, however, provided with a significant - albeit unusual - measure of security. Several social investors, cooperative organizations included, have agreed to designate their funds as the first to assume losses that would otherwise prevent full repayment to other investors.

Tax Implications

Social investment loans made directly to the Cooperative Fund are not tax deductible nor are they included in the income of the investor when they are repaid. Any accrued interest, whether paid out or left to accumulate with principal, is fully taxable to the social investor. An IRS 1099 form is sent out at the end of each year. A social investment loan may, however, be rendered tax deductible when it is provided indirectly through a self-directed individual retirement account with a bank providing such a service. Under this option, funds are deposited with the participating bank and then self-directed for investment in the Cooperative Fund of New England. Funds on deposit in the IRA account may not be prematurely withdrawn without substantial penalty. They may, however, be removed from the Cooperative Fund and redirected elsewhere. Persons desiring to use this tax benefit are advised to obtain further information regarding the restrictions and dollar limitations that apply to the use of this procedure.

Promissory Note

Funds remitted to the Cooperative Fund will be acknowledged by a promissory note with the terms chosen by the social investor. Under this note the Fund is obligated to provide financial statements and reports on its activities at least three times a year. The specimen promissory note in Appendix D of the prospectus provides full information as to warranties and obligations assumed by the Fund in its relationship with a social investor.

Third Party Rating

CFNE has been well rated by the CARS tm independent outside review process.