Giving Compass’ Take:
• Impact investors are starting to come to the forefront in providing relief for those struggling with COVID-19 in three phases: response, recovery, and resilience.
• What gaps can impact investors fill that government aid isn’t reaching?
Across the impact investing community, COVID-19 is prompting a global response that those of us in the impact investing community have been proud to witness. Impact investors are doing what they do best: leveraging the power of finance to address the world’s biggest challenges. It is already becoming clear that the ripple effects of the pandemic intersect with many of the goals impact investors have focused on for years: broadening access to affordable health care and housing, creating quality jobs, and building more sustainable agriculture and energy systems.
Among the hundreds of member organizations in the Global Impact Investing Network, tangible actions aimed at changing the course of the pandemic are unfolding. At the GIIN, we see those actions falling into three primary phases: a response phase, with a focus on immediate health and financial needs; a recovery phase, with a focus on rebuilding and tackling the social and economic impacts of the pandemic; and a resilience phase, with a focus on long-term systems change.
In many cases, impact investors are adjusting financing terms for existing investees as a first and immediate response. By making debt repayment terms more forgiving, impact investors are ensuring that social and environmental enterprises can continue to provide critical services — even as many struggle to overcome virus-related cash crunches.
Many impact investors also are offering bridge loans to their investees. Such loans are meant to help businesses cover expenses like payroll, rents, and other operational costs until emergency government aid arrives or consumer demand revives.
Read the full article about impact investors by Giselle Leung at PhilanTopic.
Since you are interested in Impact Investing, have you read these selections from Giving Compass related to impact giving and Impact Investing?
Looking for a way to get involved?
If you are interested in Coronavirus, please see these relevant events, training, conferences or volunteering opportunities the Giving Compass team recommends.
Are you ready to give?
In addition to learning and connecting with others, taking action is a key step towards becoming an impact giver. If you are interested in giving with impact for Coronavirus take a look at these Giving Funds, Charitable Organizations or Projects.