[lbo-talk] We Are Indivisible

[Jordan Hayes]

> What mystifies me is the promise that $5 = $35:
>
> "The donations to Create Jobs for USA will not be loaned to the CDFIs.
> They will be turned into capital — equity that can be leveraged. 
> Pinsky
> and others told me that that equity can be leveraged 7 to 1, meaning
> that if 10 million Starbucks customers donate $5, that will support 
> $350
> million worth of lending."

I think what he means is that the donations won't go for actually Doing 
Things.  They will go to capitalize CDFIs -- through equity investments? 
Or grants?  What if those investments generate returns?  I digress.

So then if a CDFI has another $200k of capital, they can make new loans 
of up to $1.4M based on that.

So: you're not donating to make things happen; you're donating so that 
someone can get a loan.

More about CDFIs here:

http://www.cdfifund.gov/

/jordan