Shared Interest Inc

TO PROMOTE THE EQUITABLE DEVELOPMENT OF POST-APARTHEID SOUTH AFRICA AND NEIGHBORING COUNTRIES BY GUARANTEEING BANK LOANS TO LOW-INCOME BORROWERS SO THAT THEY MAY SUPPORT THEIR FAMILIES, BUILD OR EXPAND THEIR DWELLINGS OR START BUSINESSES WHICH IN TURN GENERATE EMPLOYMENT FOR OTHERS IN THEIR COMMUNITIES.

DURING THE 2021 TAX YEAR, THE ORGANIZATION HAD OUTSTANDING AS MANY AS 10 AGREEMENTS GUARANTEEING COMMERCIAL LOANS TO SMALL AND GROWING BUSINESSES, AGRICULTURAL ENTERPRISES AND MICRO-FINANCE INSTITUTIONS N THE SOUTHERN AFRICA REGION. SEVEN OF THIS NUMBER SUPPORTED ENTERPRISES IN SOUTH AFRICA, OUR PRINCIPAL FOCUS OF ACTIVITY; THE OTHERS WERE IN MOZAMBIQUE, MALAWI AND ZAMBIA, THREE COUNTRIES THAT ARE PART OF THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY. THE AGGREGATE EXPOSURE INVOLVED IN THE GUARANTEES TOTALED APPROXIMATELY $3,068,163 IN THE YEAR. BECAUSE THE CREDIT FACILITIES ARRANGED BY SHARED INTEREST WERE LIMITED TO NO MORE THAN 75% OF THE LOANS THEY BACKED, THE GUARANTEES ULTIMATELY UNLOCKED TOTAL LENDING OF SUMS IN EXCESS OF THE STATED AMOUNT BY VIRTUE OF THE RISK-SHARING AGREED IN THE CONTRACTS BETWEEN LOCAL INSTITUTIONS AND THE ORGANIZATIONS. ADDITIONALLY, THE GUARANTEE PROGRAM, IMPLEMENTED BY MEANS OF THE PROVEN TRANS-BORDER MECHANISM OF STANDBY BANK LETTERS OF CREDIT, CONTINUED TO GIVE THE CONFIDENCE TO SOUTHERN AFRICAN NON-BANK FINANCIAL INSTITUTIONS AND OTHER ALTERNATIVE LENDERS TO PUT CAPITAL AT RISK IN THE SPHERE OF SMALL BUSINESS FINANCE AND LENDING TO ECONOMICALLY-DISENFRANCHISED INDIVIDUALS. COLLATERALIZING THE LETTERS OF CREDIT, WERE THE US-CUSTODIED INVESTMENTS OF THE ORGANIZATION, FUNDED BY LOANS AND DONATIONS BY AMERICAN INDIVIDUALS, FAMILY FOUNDATIONS, FAITH-BASED INSTITUTIONS, HEALTHCARE SYSTEMS AND OTHER INVESTORS ACCEPTING CONCESSIONARY FINANCIAL RETURNS IN EXCHANGE FOR THE SOCIAL IMPACT THAT THE ORGANIZATION HELPS TO CREATE.