The Department of the Treasury announced Jan. 20 that it has entered into an agreement with Nonprofit Finance Fund to be the fund manager for the Social Impact Investment Fund (SIIF), the state’s first socially motivated public finance vehicle.
The Social Impact Investment Fund was established by law in 2023 to deploy below-market rate loans and other financial tools to advance socially beneficial projects and programs by leveraging public and private investments. With today’s announcement, the state is investing about $20 million in seed funding to help capitalize the SIIF.
“My administration promised to deliver a socially motivated public financial vehicle to give resources to our underserved and underinvested communities that for too long have lacked access to critical capital,” said Governor Phil Murphy, whose two-term tenure ended Jan. 20. “Today’s investment is the next step in expanding affordable housing and making other needed investments in the long-term health and well-being of our communities. I am grateful to the Public Bank Implementation Board for all of their efforts.”
NFF is a nonprofit lender, consultant, and advocate. Since 1980, NFF has helped organizations access money and resources to realize their communities’ aspirations, providing $1.7 billion in financing and access to additional capital in support of over $6.3 billion in projects for nearly 1,000 organizations nationwide. As a community development financial institution (CDFI), NFF manages a portfolio of nearly $350 million.
As fund manager, NFF will oversee the day-to-day operation of the fund, financing projects in three investment areas: access to capital for early-stage affordable housing developers, infrastructure investments in distressed municipalities to modernize local drinking water systems, and the construction and maintenance of early childhood education facilities.
“Our work centers on ensuring that all communities have access to the capital and resources needed to build wealth and well-being,” said Aisha Benson, CEO of Nonprofit Finance Fund. “The SIIF provides a vital platform for delivering flexible capital to organizations advancing affordable housing, early childhood education, and infrastructure across the state..”
Treasury and NFF will continue to refine the criteria of the SIIF’s investment areas in the coming months in collaboration with multiple other State agencies, including the New Jersey Housing and Mortgage Finance Agency, Infrastructure Bank, Economic Development Authority, and New Jersey Department of Education, among others.
The SIIF will move New Jersey closer to developing a public banking model to support projects advancing social equity and strengthening the Garden State’s economy, as recommended by the Public Bank Implementation Board.
