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Public Benefit Corporation

April 3, 2018

We often get questions around the nature of our company and we’d like to take a little time and address them with you. EquiFi is a for profit corporation with a PBC (Public Benefit Corporation) designation. Is a PBC just a buzzword in the era of social entrepreneurship? Shall a consumer even care for such terminology? How can we be a for-profit and carry a benefit-oriented title at the same time? The short answer is that the two apparently antithetical realities aren’t mutually exclusive.

 

Public Benefit Corporations are companies that are purpose-driven. We are in business to make money, but we care about how we make it and we ensure that those who do business with us help us in our specific societal aspirations.  Our primary goals as a PBC are the following: 1) Show consumers how to reduce the amount of debt used to finance their home; 2) Help them create/manage their wealth, and 3) Demonstrate that Public Benefit Corporations are best ways for corporations to operate. EquiFi is committed to investing in areas others investor would ignore. We partner with endowments, housing agencies, and housing advocacy groups who share our ideals. As you can see, being a PBC, from our point of view is a responsibility and a promise; we are committed to do well while doing good and we promise the communities we serve that they will experience a degree of growth and improvement.

 

Intuitively, areas with high HPA (home price appreciation) and strong projected economic growth, are the ones that appeal the most to investors. We absolutely want to help our eco-system maximize impact in these geographies and it is safe to say that they are going to be our initial target markets. At the same time, we are also aware that there are parts of the country that have been traditionally slower and consequently less desirable to investors. We realize the trade-off is real and we decided to do something about it, within our means. As profit gets generated, EquiFi allocates a portion of it to sustainable developmental projects in LMI (low moderate income) areas.

 

In our mind, revitalizing under-served communities is best accomplished through focused investments that foster growth and invite young generations to stay and create prosperity.

Areas that receive investments are given the chance to evolve and meet their underlying potential waiting to materialize. Collective economic improvement can positively affect society at many different levels; a more developed community will give life to new talent, will help generate new ideas and will give its people an enjoyable sense of belonging to the place where they live. If we can be of benefit in only the smallest community with our work, we'll have accomplished our goal.

 

Homeownership seen through our lens is a way to reach your financial objectives and indirectly create an ever-green system of growth and development for others, as well. So, to go back to one of our initial questions – shall consumers care for the PBC designation? We don’t ask you to care but we’d like for you to be aware. Awareness, after all, is the first step towards making a choice that will make the most sense to you and will hopefully meet your values and beliefs. Thanks for reading. Same time, same place next week!

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Author of the Post

Laura is a member of the EquiFi leadership team.

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