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Impact Investing
In 2018, our Board of Directors adopted Economic Mobility and Persistent Poverty as the primary focuses of its work in the community. The Foundation has adopted a holistic definition of economic mobility that goes beyond economic success to include personal autonomy and sense of belonging.
Against this backdrop, the Board voted to allocate $1M to a local impact investing strategy to support its overall goal of creating opportunities for economic mobility in the Chattanooga area.
Chattanooga is always evolving and so too are the needs of our city.
We're still working to transform generosity into lasting impact.
Affordable Housing
Chattanooga has the opportunity to lead the Southeast in building a vibrant housing market.
Chattanooga is experiencing a deepening affordable housing crisis fueled by a rapid increase in housing costs, limited housing supply, and slow wage growth. The city’s population growth has significantly increased demand, driving up prices faster than wages are rising. This leaves many residents, especially those with mid-range and lower incomes, struggling to afford housing. Nearly half of Chattanooga’s renters are cost-burdened, meaning they spend more than 30% of their income on housing costs, including rent and utilities. This threshold is widely recognized as the point at which housing becomes unaffordable and begins to crowd out other essential needs like food, healthcare, and transportation. Additionally, recent research has identified the need for at least 5,000 affordable units for extremely low-income households.
How the Community Foundation is addressing the issue:
In 2024, the Community Foundation accepted a $5 million line of credit from the Robert Wood Johnson Foundation (RWJF), aimed at improving social determinants of health in our community by supporting the creation and preservation affordable housing. Specifically, this loan supports long-term affordable housing development through strategic partnerships with community lenders and nonprofit developers. Loan applications are reviewed by CFGC staff and approved by a Board-appointed Real Estate Committee made up of local experts in housing development, financing and management.
In addition, the Board has committed $400,000 of grant dollars from the Fund for Chattanooga to create a fund to work in coordination with these impact investments.
Accelerator Loan Fund
The Accelerator Loan Fund assists the growth and development of successful small business enterprises in the Chattanooga/Hamilton County community.
In partnership with LAUNCH Chattanooga and Tennessee Valley Federal Credit Union, the Accelerator Loan Fund works to provide low-interest rate loans to entrepreneurs who would otherwise not have the opportunity to seek such capital. As entrepreneurs go through the loan application process, they are exposed to new banking and business relationships. Once approved, they are given an advisor who will walk with them for the next year of their business to provide wisdom, thought leadership, and insight.
Once approved, the entrepreneur is given an advisor who will walk with them for the next year of their business to provide wisdom, thought leadership, and insight. At the end of the loan term, the goal is for each entrepreneur to be able to access new sources of capital from other investors and other financial institutions. The Accelerator Loan Fund Program exists to provide access to capital and to increase social capital and pathways to success.
