Financing Ozarks Rural Growth and Economy

Frequently Asked Questions About Investing in FORGE

1. What is FORGE? FORGE is a revolving loan fund that links investors with borrowers to promote a healthy sustainable rural economy in the Ozark Bio-region (Southern Missouri, Northwest Arkansas, Northeast Oklahoma).

FORGE is managed by a professional staff and a Board of Trustees. Our board and staff are representative of all the regions of the Ozarks. They include borrowers as well as investors—experts in the fields of: community development; affordable housing; low-income services; business training; and banking and law.

2. Why does FORGE exist? FORGE exists to be a bridge that connects people who have financial resources to those in the Ozarks that need access to credit.

3. Who invests in FORGE? FORGE investors include individuals, businesses, charities, foundations, and other like-minded groups. Investors may elect to be anonymous or allow their name to be published to encourage others to invest.

4. Who does FORGE lend money to? FORGE lends money to individuals, communities, and groups for purposes such as; farm production, small business start-ups, business expansion, credit establishment and housing.

5. Why would I want to invest in FORGE?

You may want to invest because you want your savings to yield tangible results in the Ozarks.
You may want to invest because you want your financial investment to help low-income families and individuals.
You may want to help because of your personal and/or religious beliefs.
You may want to help because you have seen your community supported by FORGE.

6. How long do I invest? There is no time limit. FORGE offers multi-year agreements. When the agreement time elapses, the staff will contact the investor and ask if the investor wishes to continue or terminate the agreement.

7. Would I be able to recover my investment? Absolutely! FORGE has a 100% repayment rate to investors. FORGE maintains a liquidity fund to assist in refunding an investor within ninety days of the investor's request. (See the agreement contract for details.)

8. Will I earn interest on my money? Yes, for investors that invest $500 or more, interest is calculated based upon the Federal Reserve Discount Rate less 1.5% to 2%.
Note: Current federal interest rates (11/01) are at an all time low. FORGE has set an interest level floor that will be paid to investors until interest rates recover.

9. How much money may I invest? A minimum investment of $500 is recommended. Investments of $5,000 or more will earn a higher interest rate. Larger investment amounts are negotiable. If you want more details, e-mail FORGE at forge@madisoncounty.net or call 1-800-394-5057.

10. What steps does FORGE take to assure loan repayment? FORGE is proactive in monitoring each loan and in assisting borrowers with management and/or operational issues. In addition, FORGE maintains a loan loss fund in the event of a business failure. FORGE loan failure rate averages between 2-3% annually.

11. Do FORGE loans meet an environmental criterion? Yes. FORGE is proactive concerning environmental issues. FORGE assures that loans made by the agency are not detrimental to the Ozark environment. The agency's loan officer conducts an on-site visit of every loan to evaluate the merits of the loan and any potential environmental impact.

Resources
Investor Agreement Conditions — Download both the investor agreement and form in pdf format.