Frequently Asked Questions

PLEASE NOTE: Investment decisions should be based solely on the contents of the prospectus.

Here are some answers to common questions you might have. If your question isn't answered, contact us!

  1. What is Social Capital Fund?
  2. What does Social Capital Fund do with the funds?
  3. Who are the employees of Social Capital Fund?
  4. What is a “Supporting Organization”?

 
  1. What is Social Capital Fund? Social Capital Fund (“Social Fund”) was formed to serve as a “Supporting Organization” under Section 509(a)(3) of the Internal Revenue Code (the “Code”) for The Capital Good Fund, a Rhode Island nonprofit organization (“Good Fund” or the “Nonprofit”) described by Section 501(c)(3) of the Code and exempt from tax under Section 501(a) of the Code. The purpose of Social Fund is to support Capital Good Fund’s mission to provide equitable financial services that create pathways out of poverty.
    Specifically, Social Fund performs two core functions for Good Fund:
    • Provide loan servicing for Good Fund’s loan portfolio. Loan servicing activities include processing loan payments from Good Fund borrowers; underwriting loan applications; following up with borrowers who have fallen behind on loans; and reminding clients about upcoming loan payments.
    • Raise operating capital for Good Fund. Operating capital raising consists of running a Direct Public Offering through which Social Fund secures loans from social investors that are used to support Good Fund’s operating needs.

  2. What does Social Capital Fund do with the funds? The proceeds from the offering are donated to Capital Good Fund to support its plans for scale. From there, Capital Good Fund will pay Social Capital Fund a fee for servicing its loan portfolio, and the revenue from these servicing fees will be used to pay back social investors. For more detail and information, see the “Use of Proceeds” section of the prospectus.

  3. Who are the employees of Social Capital Fund? Capital Good Fund has a shared services agreement with Social Capital Fund, meaning that both organizations benefit from an amazing and dedicated team of poverty-fighters. Click here to see some faces and bios!

  4. What is a “Supporting Organization”? See here for an explanation of how American Supporting Organizations work.