Program – Related Investments (PRIs)
Along with grants, convenings, technical assistance and communications, the Babcock Foundation uses program-related investments (PRIs) to further our mission of helping to move people and places out of poverty. We use PRIs as financial investments, usually insured deposits or loans to a revolving loan fund in a Community Development Financial Institution (CDFI). PRIs earn a below-market rate of return, and the principal is repaid and recycled for additional grants or investments. Our PRIs go up to a million dollars, with interest rates and terms matched to the purpose and risk of the investment.
The Mary Reynolds Babcock Foundation has committed $10 million dollars toward its PRI program. We make our PRIs to CDFIs, such as credit unions, banks, revolving loan funds or venture capital funds. These PRIs are often combined with operating or project grants to help these CDFIs build their financial capacity, leverage public or private sector capital, and improve long-term sustainability. Our PRIs are made only to experienced intermediaries with a track record of lending or investment and a clear business model for repayment of the PRI.
Most PRI borrowers have an existing grant relationship with the Foundation. If you would like to explore a PRI, please contact your Network Officer. If you are not currently a grantee partner, but interested in exploring a relationship with the Foundation, see our Grants section.