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Frequently Asked Questions

1How can Impact Capital Funds offer 2.90% loans when other lenders seldom go that low?
Impact Capital Funds refinances loans to graduates of Universities with very high probability of full repayment. Other lenders who are more liberal in choosing their customers must charge more interest to compensate for the higher risk of their borrowers defaulting.
2When are the annual investor payments made, and what determines the amount?
When your Fund is launched, it will take 12 months for the first investor distribution to be made. The first distribution payment will be made in the 13th month, and yearly thereafter until the end of the fund’s term.

The annual investor payment is determined by a formula, as follows:
Fund Investment Income minus Expenses
(Loan interest + dividends + option income) – (Fund expenses) = Payout
3How do investors track how their Fund is performing?
Fund investors have a login portal where their Fund value is available for viewing. The net asset value of the Fund investments is updated monthly and Fund performance is reported quarterly.
4As a Fund investor, where is my money held?
There are two allocations within your Fund investment: a pool of low-interest loans, and a diversified portfolio of dividend stocks with covered call options. Loan payments from borrowers are made monthly to our custodian for loans, the Kingdom Trust Company. On a regular basis, these payments are consolidated and transferred securely to Charles Schwab, the independent custodian for the Fund’s dividend stock portfolio, where they are managed by a team of investment professionals.
5How does the Fund earn scholarships for students with financial need?
The Fund has a stated income target of 4% per year. In years when Fund profits exceed 4%, the excess return above 4% is shared as follows:

  • 50% to Fund investors
  • 50% to scholarships
6What does the Fund charge to manage investors’ money?
The sponsor of each Fund is Impact Capital Funds, Inc. Your Fund pays Impact Capital Funds an advisory fee of 1.25% per year, calculated as a percentage of the total fund assets under management.
7As a borrower, how long does it take to be approved and receive my Impact Capital loan?
To pre-qualify takes only 5-10 minutes, because we do not verify any information you share with us. When you formally apply for your refinance loan, you will need to upload things like your W-2, a color copy of your driver's license, and the pay-off from your current loan(s). Once you have uploaded everything needed for the decision, you generally receive an answer within 1-3 hours.
8Is the money for my Impact Capital loan sent directly to the borrower, or to the original lender?
In most cases, your new loan will be wired directly to your former loan service provider(s). This assures your former loan balance is fully paid off.

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