ImpactAlpha, November 4 – Fintech company CNote, based in Oakland, Calif., has committed $18 million to small businesses, affordable housing and community development projects with capital raised through its high-yield savings product.
The women-led company, which launched a year ago, offers depositors 2.5% returns—far higher than the 1% or less that most savings accounts offer. Money committed to a CNote account is then on-lent to community development financial institutions to make loans and invest in community organizations and businesses.
CNote’s accounts are SEC-qualified but not FDIC insured, so they are technically considered investment products, rather than a typical savings account.
Since its launch last September, CNote’s account holders have supported more than 280 entrepreneurs, 50% of which are minority-led and 37% of which are women-led. These businesses have helped maintain or create 1,400 jobs.