Green Money: Energy-Efficient Mortgages and Green Investing

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Joe Morant, a full-service mortgage professional in Marin County, California, contributed to this answer. Morant specializes in efficiency financing for residential and commercial clients.

Conscientious investing

“The chasm between rich and poor is growing wider, both in the United States and across the globe. I can’t give away all my money, but it would be great if some of my savings could be used to help someone start a little business and escape poverty. As long as I could earn a little bit of interest I’d be thrilled. Are there any investment funds that do this?”
Bruce
Portland, Maine

In our interconnected world, none of us are truly secure while desperate poverty afflicts billions of people. Fortunately, this awareness is growing, and many organizations are working on the frontlines to alleviate poverty. Investors who want to participate in this vital cause frequently turn to Community Development Loan Funds. Most community loan funds are small by banking standards; the capital they gather from investors is pooled into a revolving loan fund from which they make small loans to their clients. More than 300 such funds, most of which operate in specific geographic areas, exist in the United States. Loan funds pick up where banks leave off, providing loans to individuals and organizations that cannot qualify for bank loans. Often they lend money at below-market rates. Likewise, they bring their investors into the spirit of cooperation and usually pay less than market rates for funds loaned to them.

For investors with a global perspective, “microcredit” banking provides exciting opportunities. The most famous example is the Grameen Bank of Bangladesh, which helped start the microcredit movement in the mid-1970s. Today, on every continent, millions of investment dollars are flowing into vegetable stalls, mini-grocery stores, shoe repair stands, and other businesses conceived and nurtured by the world's poorest entrepreneurs. With small loans, business training, and peer support, micro-entrepreneurs can create personal and economic success for themselves, their children, and their communities. With affordable credit have come savings opportunities, development of leadership skills (especially among women), and many other social benefits. Children tend to stay in school longer, while communities report more balanced gender roles, individual empowerment, and restored hope.

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