Purpose
Program-Related Investments (PRIs) are loans and equity investments provided at below-market rates to support charitable activity. Used primarily within the Program on Human and Community Development, PRIs extend the reach of traditional philanthropy by helping recipients attract additional capital from public and private financing sources.

The MacArthur Foundation began its PRI program in 1986. Since that time, it has awarded approximately $200 million in PRIs to more than 100 nonprofit and for-profit organizations in the U.S. and abroad. The typical structure of these PRIs is a long-term, unsecured loan with a three percent interest rate and balloon maturity.

PRIs have been made in all areas of the Foundation's grantmaking, but most have supported specialized intermediaries known as Community Development Financial Institutions (CDFIs). CDFIs provide financial services and products to people and communities that are underserved, economically disadvantaged or distressed. More than 700 CDFIs operate across the U.S. today. They take many forms, including banks, credit unions, revolving loan funds and venture capital or private equity funds.  Collectively, these CDFIs manage more than $10 billion in total assets. 

Strategies
The Foundation's PRI program currently has two priorities:

• Reviewing existing CDFI borrowers with PRI loans near maturity. Twenty-five existing CDFI borrowers are eligible for renewal consideration. The Foundation's policy is to invite renewal requests from these borrowers approximately three years prior to the maturity of their PRI loans. Most of the 25 renewal-eligible borrowers are scheduled for review by 2006.
• Investing in affordable housing preservation. Window of Opportunity: Preserving Affordable Rental Housing is a $150 million initiative to preserve and improve affordable rental housing across the country. For information about the initiative, including eligibility criteria for PRI support, please click here.

Funding
Housing Preservation. Through the Window of Opportunity initiative, organizations interested in inquiring about potential PRI funding through this initiative should review the relevant guidelines, which include information about the types of organizations and activities that can apply for support.

Community Development Financial Institutions. The Foundation is not considering new requests for PRIs for US-based CDFIs.

Other Grantmaking Priorities. PRI requests for organizations or activities related to other grantmaking activities supported by the Foundation will be considered on a case-by-case basis upon the recommendation of relevant program staff. Inquiries made directly to PRI staff will be redirected to the appropriate grantmaking area for review. Please note that the Foundation provides its PRIs on an organizational basis only; requests for investments in individual real estate projects or business enterprises are not eligible for funding.

For more information
Questions about Program-Related Investments can be e-mailed to PRI at the MacArthur Foundation.