How is my capital “recycled” within the fund?
WEDCO operates a Revolving Loan Fund (RLF). Unlike a traditional grant-making non-profit, when we deploy your capital as a loan, the principal repayments are restricted and returned to the fund. This ensures that your initial contribution acts as a perpetual engine for regional growth, being reinvested into new projects as soon as it is repaid.
How does WEDCO manage portfolio risk?
We apply a disciplined, two-tier risk mitigation strategy. First, we conduct rigorous due diligence focusing on the character and business planning of the borrower. Second, we maintain Advisory Oversight through partnerships like the NH Small Business Development Center. We don’t just provide capital; we provide the professional oversight necessary to protect the integrity of the fund.
What does “Catalytic Gap Financing” mean?
WEDCO rarely acts as the sole lender. We specialize in filling the “gap” that traditional banks cannot cover due to regulatory or risk constraints. By taking a subordinate position, we “catalyze” the deal—making it possible for traditional lenders to say “yes.” Historically, every $1 WEDCO deploys leverages nearly $4 from other sources.
Is my contribution tax-deductible?
Yes. WEDCO is a registered 501c-3 non-profit. While we operate with the discipline of a private lender, our mission is entirely focused on the public benefit of regional economic stability and wealth creation.
How is impact reported to partners?
Transparency is a pillar of our governance. Partners receive regular reporting on capital velocity, jobs sustained, and the regional economic outcomes of the current portfolio. We focus on hard data and regional vitality rather than anecdotal success.
