The Allentown-based National Energy Improvement Fund has launched the fifth round of its Climate-Action Investment Opportunity program, but this latest round is bigger and slightly different than the previous offerings.
The NEIF is looking to raise $2 million to support its loan program.
The company provides fixed-rate loans to homeowners and smaller commercial businesses to make improvements such as adding insulation, or new more energy-efficient heating systems to properties. It also provides loans to make homes and other properties more resilient to harsh weather conditions such as hurricanes.
“This isn’t a sexy solar thing,” said Peter Krajsa, NEIF co-chair and founder. “These are things that people need to do to their homes to make them more sustainable and resilient.”
What’s different about the investment opportunity offered by the Certified B Corp., is that it’s looking for smaller retail investors to support the fund, versus a larger institutional investor, which typically back such funds.
In this round, the NEIF is accepting investments of as little as $1,000 to attract smaller investors who want to “do good” with their money.
Investors will receive a 7% annual return with twenty-eight scheduled quarterly payments. Unlike previous offerings, principal will be paid back over the course of the payments, so investors don’t have to wait seven years to get their original investment back, a change that Krajsa said he hopes will make investing more attractive.
“We are excited to be able to continue to broaden the audience for investment in clean energy and building resilience,” said Krajsa.
“It’s an opportunity for investors to take direct action improving local resilience and sparking economic growth at a crucial moment in our political and social economy,” added Matthew Brown, who is also a co-chair and founder of the company.
Krajsa said the attractiveness of the offering is that it is a stable, fixed investment versus the risk that an individual would make in some speculative investments. People investing in the program also know that the money is going to help people just like them afford home and building improvements that will be more sustainable and resilient.
“It’s for someone who says ‘I’m not investing in something speculative, and I want my money going to the right places,’” Krajsa said.
He noted that the previous four offerings, which were smaller than this national offering, all exceeded their targets.
The investment opportunity is being managed by RaiseGreen Inc, an SEC and FINRA licensed Funding Portal, which specializes in helping companies, like the NEIF, raise money for sustainable projects.
Full details of the offering can be found at www.climateactioninvestmentnotes.org.