Revolve works with CDFIs and emerging loan funds to develop funding strategies for businesses and nonprofits that would be approved for CDFI financing if not for equity or net asset concerns.
Revolve has extensive networks with venture funds, foundations, banks, loan funds, community organizations, and service providers. Revolve reviews direct referrals from these partners.
Revolve partners with its funders to develop outreach strategies to learn about businesses and nonprofits that could be eligible for funding.
Revolve provides “recoverable grants” that are designed to provide patient capital to businesses and nonprofit organizations, respectively. These are not loans. Recoverable grants are sized between $1,000 and $100,000, and repayment is only required when an organization achieves certain financial success. Any grant funding that is returned to Revolve will be recycled for new investments.
Donors to Revolve do not earn a financial return. This is a charitable donation.
Native American developer needs $50,000 of equity to secure pre-development loan from an affordable housing lender. Revolve works with lender to provide needed equity. Revolve is repaid if developer secures new financing based on higher property value.
CDFI wants to provide micro-loans to African-American and Latinx entrepreneurs but does not want to require personal assets as collateral. Revolve provides $100,000 grant to CDFI as substitute collateral to support 10-20 loans. Revolve is repaid by CDFI when loans to borrowers are repaid.
Nonprofit qualified health care clinic is seeking federal grant to expand service capacity. The grant requires a funding match. Revolve provides $100,000 recoverable grant for application completion and matching requirement. Revolve is repaid through additional matching funding or when organizational revenue reaches determined milestone.