ABOUT
The New Jersey Forty Acres and a Mule (FAM) Fund (the “Fund” or NJ “FAM Fund”) is a first of its kind private investment vehicle focused on making equity and debt investments in Black and Latinx businesses located or doing business within the State of New Jersey and transform real estate projects within New Jersey’s Black and Latinx communities. The NJ FAM Fund intends to raise $100 million in investable capital to make opportunistic investments in value-added small businesses and real estate projects that will scale and reduce the wealth, health, and social disparities that exist with Black and Latinx communities when compared to the general population of the State of New Jersey. The Fund will raise capital through both charitable contributions and investments from financial institutions and corporate partners. The NJ FAM Fund will operate as a private investment vehicle with assistance from broad public support.
WHO WE CAN HELP
- Entrepreneurs
- Developers
- Small Businesses
- Mid-Sized Businesses
The NJ FAM Fund is a direct constructive economic response to the statewide social inequalities resulting from systematic racism. Pursuant to a recent research study, the median net worth of New Jersey’s white families is $309,000, which is the highest in the nation. Conversely, the median net worth of New Jersey’s Black and Latinx families is just $5,900 and $7,020, respectively (Source: NJ Institute of Social Justice 2020).
THRIVE IN NEW JERSEY
We Will Measure Our Impact
THE NJ FAM FUND’S GOAL IS TO CLOSE NJ’S RACIAL WEALTH GAP THROUGH STRATEGIC SOCIAL IMPACT INVESTMENTS
DEVELOPERS
The NJ FAM Fund will invest in regional and local developers that will provide value-added input to the communities in which they will work. Developers that include essential local community development perspectives into the construction and/or rehabilitation of residential and commercial projects will be welcomed. The NJ FAM Fund will invest in and partner with non-profit and for-profit entities that will specialize in affordable housing, renovation, community facilities, retail space, and civic facilities that aim to create thriving communities without displacement.
PRODUCTS
SMALL & MEDIUM BUSINESSES
The NJ FAM Fund will provide the patient and flexible capital needed to promote mission-based investments and improve lives in NJ’s disinvested communities. The goal of the fund is to promote low-cost debt and/or equity that is impactful and catalytic. The infusion of capital to Black and Latinx businesses is a very important goal of the NJ FAM Fund because it provides the most catalytic ingredient to revitalizing the state of New Jersey’s Black and Latinx communities. The NJ FAM Fund’s investments will be issued to strengthen New Jersey’s communities by leveraging current assets, helping to decrease risk for businesses and other investors, as well as plant the seeds for future investments.
FAQ
The New Jersey Forty Acres and a Mule (FAM) Fund (the “Fund” or NJ “FAM Fund”) is a first of its kind private investment vehicle focused on making equity and debt investments in Black and Latinx businesses located or doing business within the State of New Jersey and transform real estate projects within New Jersey’s Black and Latinx communities. The NJ FAM Fund intends to raise $100 million in investable capital to make opportunistic investments in value-added small businesses and real estate projects that will scale and reduce the wealth, health, and social disparities that exist in Black and Latinx communities throughout New Jersey.
Distressed or underserved nonmetropolitan middle-income geographies designated by the Board [of Governors of the Federal Reserve System], Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency, based on –
(A) Rates of poverty, unemployment, and population loss; or
(B) Population size, density, and dispersion. Activities revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals.
CRA Areas can be found on the following link.
https://www.ffiec.gov/cra/distressed.htm
Community Reinvestment Act (CRA) Areas in the state of New Jersey.
The NJ FAM Fund is created for Black and Latinx-led or -owned businesses (meaning the company has ownership that is 50.1% or more Black or Latinx -owned or has a majority of Black or Latinx board members or persons exercising similar functions or is predominantly serving the Black and Latinx communities in New Jersey by having a majority of Black or Latinx customers and/or operations). The NJ FAM Fund targets Black and Latinx-led or -owned businesses, but is not the only requirement reviewed when making funding decisions. The NJ FAM Fund management committee comprehensively looks at the overall impact and the financial wherewithal of each investment.