For more than a decade, Northern Initiatives, a nonprofit community development corporation, has been finding innovative ways to reinvigorate the regional economy. It has supported the creation of more than 1,000 new jobs and has helped more than 530 businesses by providing loans from its $10 million fund. The organization’s work is fueled by its relationships with Northern Michigan University, whose administrators, faculty and students have provided leadership and support. 

What are Northern Initiatives Notes?
How does Northern Initiatives work?
Who can buy Northern Initiatives Notes?
How do I invest?
What are the rates and terms?
Is my money safe?
How are Northern Initiatives Notes different from a charitable contribution?
Do Northern Initiatives Notes qualify for tax benefits?

What are Northern Initiatives Notes?
Northern Initiatives Notes are unsecured debt instruments offered by Northern Initiatives, a nonprofit community development corporation that provides loans to start-up companies and growing businesses working to reinvigorate rural economies in Northern Michigan and northeastern Wisconsin in order to create and maintain jobs.

How does Northern Initiatives work?
Your money is pooled together with that of other Note holders in a revolving loan fund. These dollars are reloaned by Northern Initiatives to start-up enterprises and growing businesses. Your investment will be used over and over again to help businesses, reinvigorate community economies, and create and maintain jobs in Northern Michigan and northeastern Wisconsin.

Who can buy Northern Initiatives Notes?
Northern Initiatives Note is a security sold only to institutions and residents of Michigan and Illinois.

How do I invest?
Contact Northern Initiatives at 906.228.5571 for a prospectus to be mailed to you. Complete the application that is included in the prospectus. Send the application with your check to the Calvert Foundation address that is listed on the application or call Calvert’s Community Investment Service Center at 800.239.5911.

What are the rates and terms?
The minimum investment amount is $10,000. You may select a term of 1, 3, 5, 7 or 10 years and an interest rate of 0%, .5%, 1%, 1.5%, 2%, 2.5% or 3%.

Is my money safe?
Northern Initiatives Notes are unsecured obligations of Northern Initiatives. Payment of the Notes is not guaranteed by any person or bank. The Notes are not deposits or obligations of, or endorsed by a bank. Northern Initiatives has 12 years of small business lending experience with over half of its loans made to start-up companies and the majority of the remainder going into subordinated debt in conjunction with community banks. Northern Initiatives has loaned over $22 million, with losses of under 3 percent.

How are Northern Initiatives Notes different from a charitable contribution?
Northern Initiatives Notes are a debt obligation of Northern Initiatives and, as such, are not treated as a charitable contribution. However, a Note holder may be able to generate a charitable contribution by donating interest earned from the investment to Northern Initiatives. For example, a Note of $100,000 at 3 percent would pay the holder $3,000 in interest in a one-year period.

This interest is taxable to the Note holder, but the Note holder may be able to reduce tax liability by donating the interest to Northern Initiatives. Note holders should consult with their tax advisors about this option.

Do Northern Initiatives Notes qualify for tax benefits?
There are no tax benefits associated with Northern Initiatives Notes. However, Note holders who contribute the interest earned on their Notes to Northern Initiatives may be entitled to a tax deduction (please refer to the question and answer above).