To safeguard the Sponsors from calls on their collateral pledges, risk mitigation measures will be implemented, ranging from completion bonds and insurances to acquisition of Stop Loss Assurance bonds.  Eventually, government guarantees and/or tax credits based on deposit amount and duration of pledges could further expand Keep Funding Finance. Sophisticated and good-willed individuals and corporations may decide out of self-interest to fund projects without a full spectrum of safeguards.

Construction projects will require completion bonds and a significant pre-construction investment. The entire assets of a given project and the Completion Bond are the primary sources to remedy any loan repayment shortfall.

Personal Development Programs – higher education, vocational training programs that rely on either individual beneficiaries or employer-paid placement fees for future repayment from new wages will require life, disability, and health insurances on each individual, all designed to insure full payback and release of Sponsor collateral.

Personal Development Programs that rely on individual beneficiaries future repayment from new wages will require life, disability, and health insurances on each individual, all designed to insure full payback and release of the collateral.

Everyone with extra money who is motivated by either survival instincts, patriotism, self interests or altruistic reasons can become a Sponsor.

Master Limited Partnerships with a designated investment mandate can aggregate smaller amounts of funds for deposit and collateral pledges to repeatedly finance specific investments.

Corporate proposals will typically, but not necessarily, match up company strategic interests with the enrolled programs. For example:

The CDs remain interest-earning assets of the Sponsors. Eventually, Non-cash assets acceptable to the banks as pledged collateral will greatly increase further availability of funds.

The banks are happy, they get a large CD, which allows them to fund a portfolio of loans at a multiple of the CD amounts. As a prerequisite to funding the loans, the risk mitigation factors have to be met, completion bonds and earnest monies, and any specified insurances have to be purchased.

KEEP FUNDING is also a means to address racial inequality in asset accumulation, especially at minority-owned and led banks. Lending limits per transaction are imposed on banks by the Federal Reserve based on total equity and certain ratios. Given that black-owned and led banks hold 0.0246% or 2.46 1/1000^th ($5.2 Billion of the $21.1 Trillion Total Assets of all U.S. banks –2020), the minority banks are highly restricted per transaction. A KEEP FUNDING transaction, as a fully secured loan, is exempt from those limitations and will allow minority and community development banks to grow dynamically faster than now possible.

As designed in Step 1, beneficiaries or end users will purchase, rent, pay a usage fee, or pay toll fees to use new or retrofitted forms of sustainable energy, transportation, infrastructure, public utilities, and public works. To address former inequities, WAIVERS OF PAYMENTS will be considered for qualifying low-income beneficiaries.

On public works, infrastructure, and renewable energy projects a portion of the future revenue stream will be packaged for sale to fixed income and bond investors, such as major insurance companies.

The revenues sold will be available after deductions for ongoing management, maintenance, reserves, and where appropriate, designated operating profits. Sales proceeds will pay off the construction loans and release the collateral pledges. The government could declare the revenue streams to be tax exempt, which would enhance pricing and sale proceeds.

Personal development program beneficiaries will contract to invest in their own future by agreeing to pay 10% – 20% of new wages to cover all costs of their education, training, insurances, and any income stipends.

In many cases Employers will agree in advance to pay a recruiting / placement fee for new employees; Hospitals acquiring RNs is a good example.

To accelerate the rate of repayment and lower the overall costs,  eventually, all wages used to pay back loans must be tax-exempt—currently, this can be achieved when paying forward funds to operating charities and charitable donations.

Each and every beneficiary creates the cash flow to pay back the total cost of the project funds, including interest and costs of CCFO funding.

Low-income families pay off construction loans by purchasing their new homes with mortgages used to return all costs plus interest plus profits to the builder, which repays the bank construction loans.

Microfinanced women pay it forward by paying off their loans to the microfinance organizations to reduce the bank loan balance.

Payments from Step 5 pay off the bank operating loans for construction or education and the collateral pledges, which have been paying interest to the Sponsors, are released without cost.

Here is the most exciting part—Sponsors are free to use their funds as they wish. Perhaps they will increase their deposits for the next cycle!

Every release of collateral pledge and redeposit for a new pledge creates a continuous cycle of:

SUSTAINABLE & RENEWABLE FINANCE