Borrower \ Issuer
Montessori Peace Centers
Lender
Friends Of Montessori Peace Centers, LLC
The recommended minimum investment amount is $50,000.00
Clicking "Get Started" and communicating your level of interest is not a binding commitment.
$560,000
Minimum Loan Goal
$560,000
Total Loan Requested
4.00%
Interest Rate
3.97%
Effective Rate
Investment Term
3 years
Funding Progress
13%
Amount Committed to Date
Amount Committed to Date
$70,500.00
Total Investors
Total Investors
2
Investors Accepting Reduced Returns
Investors Accepting Reduced Returns
1
The interest rate listed above is the annual interest rate you will receive on your investment.

* This listing is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities. Any offering or solicitation is restricted to qualified prospective investors who are supporters of Montessori Peace Centers, who have reviewed a confidential offering memorandum and who have executed the subsequent subscription documentation. Persons accessing this site are deemed to represent that they will not use the information herein to offer to purchase securities in a manner that would violate restrictions set out in the information or any securities laws of any jurisdiction.

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

 

Reason​ ​for​ ​Loan

 

MPC’s mission is to build a network of community centers that not only offers Montessori child care for children, but also offers support for their families through parenting classes, counseling, housing and career development.

Montessori Peace Centers (“MPC”) has only been operating for 1.5 years. The organization has achieved a number of significant milestones in this short time including reaching financial stability within 6 months of opening their doors and filling their previous center to capacity with a waiting list in less than a year. It is clear that MPC’s mission has resonated with the Bellingham community. MPC now has the opportunity to purchase the property they are currently renting. Owning this property will help MPC establish permanent roots and allow them to grow the school, adding more classes in order to better serve students and families in the Bellingham community.

While MPC has achieved critical financial milestones in a short period of time, they are not yet in a position to secure a traditional bank loan. For that reason, they are exploring alternative ways of financing a loan to purchase the property. After researching various options, MPC engaged Semble to assist in the securing of a loan.

Semble facilitates a process whereby the supporters of MPC have the opportunity to make an impactful investment. Investors come together to finance the loan for the school property and they earn 4% interest on their investment. Semble’s model will greatly reduce the monthly facility payments and allow MPC to pursue a conditional use permit for the property. MPC will then have the capacity to grow their program over 400% serving more families who need this support. Please consider supporting MPC at this critical juncture in their history.

 

Positive​ ​Community​ ​Impact

Reason for Loan PhotoMPC is the only Montessori school in Whatcom county approved to accept DSHS child care subsidies. This allows reduced tuition for low-income parents, allowing them to work or attend classes. MPC also offer volunteer opportunities for parents so they can further decrease their child care expenses. In addition, they promote a healthy lifestyle for the children by serving 100% healthy organic food and include a 2 hour nature immersion into their daily routine.

In the future,the program will include specialists that provide life skills classes, counseling and external resource referrals to further support families.

 

 

Organization History

Reason for Loan PhotoAngie Burrell and James Bauckman co-founded Montessori Peace Centers in April 2015. They both hold Master’s degrees in Education, are certified to teach Montessori, and have individually founded multiple Montessori schools. They currently serve as administrators and teachers for the MPC school and continue to develop the MPC organization.

In July 2016, the first MPC school was opened in Happy Valley. Although it was successfully filled in less than a year, the rental property was sold. The time, money and sweat equity poured into that location was lost. They then moved to a temporary location for the summer and began the search for a more permanent location.

In September, MPC rented a 4,000 square foot house located at 3200 Vallette Street a week before school started. This is a beautiful property that backs up to Cornwall Park. It provides an ideal opportunity to serve our current families and allows us to open additional programs for families on the waiting list. The purchase of the property at 3200 Vallette Street in Bellingham, WA will secure the school’s location and allow them to move forward with their important work without the risk of losing our building again.

Resources

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

Strategic Stewardship

To secure institutional financing for a nonprofit through a bank, the organization must demonstrate consistent financial performance over many the years. This financial success is, in large part, due to the participation of the nonprofits supporters. Thus, since the credit-worthiness of the organization is directly tied to its supporters, instead of letting the bank become the benefactor of this established financial strength, Semble believes that the community as a whole is better served by letting those same supporters of the nonprofit become intentional with their investments and address the loan need at a lower costs (meaning more dollars available to drive mission) while providing a compelling investment to those that make the organization viable to begin with. 

Impact Investing

REALIZE A FINANCIAL AND SOCIAL RETURN WITH HIGH SOCIAL IMPACT.

Socially responsible investing is gaining traction as an investment strategy that combines the motivations of building wealth and creating social change. What could be better than creating positive impact in your community just by redirecting some of your investments? The way you invest can then help bring about positive change without neglecting your financial goals. Each dollar invested will allow your nonprofit do more. It’s truly an impact investment that can be a WIN for all involved (you, your nonprofit, and the community).

The Process

  • Reviewing the Opportunity - At the point a supporter is introduced to an impact investment opportunity, Semble has explored the loan options of the nonprofit, compiled necessary details, and published the nonprofit’s details to our online lending platform. This platform allows supporters to review the details in order to make an informed decision about investing.
  • Making a Commitment - Supporters have direct control over their decision to invest and they know that the sole purpose of the investment is to make a loan to their specific nonprofit. When a supporter says yes to participating, they set how much to invest as well as their desired rate of return (a maximum return is set by the nonprofit). 
  • Setting up the Funding Source - Once enough support through commitments has been indicated to fund the loan need, supporters are directed to set up accounts to evidence their commitment. Investors have the option of using taxable funds (cash from their checking, savings or investment accounts) or self-directed retirement funds (such as an IRA or 401k rollover).
  • Getting a Return - Following the loan closing, each month the nonprofit will make required loan payment. As these payments are received they are passed through to the participating investors to evidence their return on investment. You get the return you asked for, the nonprofit fulfills its mission without the high cost of traditional loans, and your community reaps the rewards.

Resources

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

The Loan/Offering

The nonprofit is raising investment funds through the sale of promissory notes ("Notes") in which 100% of the proceeds will be used to finance its loan need. For each loan initiative, there will be a newly-formed limited liability company ("LLC") in which the Borrower is the sole member. The investor's promissory note will be from the newly-formed LLC and it will be the LLC that then has a loan with the nonprofit evidenced by a Loan Agreement, Promissory Note, and security agreement.

The Notes to be issued by the nonprofit will allow for a per annum maximum interest rate return and term as indicated. Each investor will have the ability to further reduce the rate for their specific Note which results in greater positive impact for the nonprofit.

IMPORTANT: In advance of any purchase, all potential investors will need to review all of the due diligence materials including the Offering Memorandum. This will be provided within the listing following the initial assessment.

Necessary Disclosures

Each potential investor, once the formal listing has been created, will be required to read all information provided within the listing including the supplemental documentation. This includes review of the past, current, and forward-looking financial information provided. The supplemental information helps provide context as to the Borrower's credit worthiness. Note, due to the structure of the Loan and to stay current on the obligation, the nonprofit will only be required to satisfy installment payments on the loan, and is not obligated to make additional principal repayments on the Loan until the loan comes due.

When purchasing a Note, the investor will be relying on the nonprofit to make the installments payments due on the Loan and payment of principal on the maturity date of the Loan. This is an investment which means there are risks that you will need to review in advance of any formal purchase of a Note. 

Potential Collateral

The nonprofit has indicated the minimum loan need as well as the maximum amount which is shown above. They have also indicated the purpose for the loan. With each nonprofit loan, there will be a security agreement as part of the overall loan documents between the LLC and nonprofit. In the event that the nonprofit has real estate that can be collateralized, a deed of trust or mortgage will be recorded against the real estate and details about the real estate provided as part of the due dilligence. In some cases, there may not be real estate and a financing statement which encumbers the general assets of the nonprofit will be recorded. 

NOTE: If the nonprofit is unable to support its outstanding obligations, any resources that are available, including proceeds from the sale of any real estate would be directed toward paying off obligations. Depending on the LLCs position in receiving funds, in such an event, there may not be funds to repay the LLC. This would result in an investment loss to any Note investors.

Risk Questionnaire

Are there any outstanding or pending litigations against the Borrower? 

No

Are there any material changes in revenue sources that should be disclosed or are not represented in the financial information provided?  

No

Are there any material changes in operating expenses that should be disclosed or are not represented in the financial information provided?

No

Are there any material changes in the Borrower’s leadership (compensated or non-compensated) that should be disclosed? 

No

Are there any employment issues or claims outstanding or pending? 

No

Are there any environmental issues on any of the real estate related to the Borrower loan?

No

Has the Borrower been in default in any obligations in the past 3 years? 

No

Has any of the key leadership of the Borrower (compensated or non-compensated) been involved in any pending or current litigations or judgments that could adversely impact their ability to serve the Borrower? 

No

Has any of the key leadership of the Borrower (compensated or non-compensated) ever been indicted or convicted of a felony? 

No

NOTE: YOU HAVE BEEN SELECTED BY YOUR NONPROFIT TO PARTICIPATE IN AN IMPACT INVESTMENT WHICH WILL DIRECTLY FUND THEIR LOAN NEED. BY CLICKING THE "GET STARTED" BUTTON AND EVIDENCING A PLEDGE, YOU ARE NOT COMMITTED TO FOLLOW THROUGH WITH A PLEDGE UNTIL YOU HAVE ALL OF THE DISCLOSURE INFORMATION HAS BEEN PROVIDED AND YOU AGAIN INDICATE AN INTEREST TO STAY INVOLVED.

Who are the investors?  

Investors come from your supporter base and their extended networks: current supporters, past supporters, family, and/or business relationships that are connected to the nonprofit. 

How does the loan work?    

Similar to a commercial loan, the funds invested by supporters would be loaned to the nonprofit evidenced by a loan agreement, promissory note, and security agreement as a lien against the property of the nonprofit as collateral.  Once the loan closes, the Borrower will be invoiced each month to make a loan payment.  This is a win-win situation, bringing socially-minded individuals together to realize a financial benefit for the investor while driving greater social impact through the nonprofit.

Can retirement funds be utilized for this type of investment?   

Yes. While participants are able to direct cash, many are unaware that it is possible to utilize self-directed retirement funds (IRAs, previous employer 401k, 403b, etc).

Does this cannibalize giving for the nonprofit?  

No. This approach enhances existing relationships within nonprofit communities. Since it isn’t the traditional request for donation, supporters are typically excited to earn a return on investment while knowing they are driving impact. This community financing approach also cultivates new relationships. As a result, Semble has found in many cases that increased volunteering and giving occurs from the participating investors. 

What is the structure of the investment that funds the nonprofit loan?

The investment is a payment dependent promissory note investment. Payment dependent means that a return is directly tied to the nonprofit actually making the required payments on the loan.

How does the Platform offer better interest rates?   

The Borrower sets the key terms of the loan, such as the interest rate, which helps ensure a better rate. This approach avoids the cost and complexity of bank lending and passes the savings on to borrowers and the investors. For example, banks have high administrative, marketing, and infrastructure costs—adding to what they need to charge in order to make a profit.

Resources

Ready to commit to invest in the loan needs of Montessori Peace Centers?

Click the blue Get Started button to enter your commitment. This is a non-binding commitment and Semble investor support is always available if you have any questions or need assistance.