What is a Rainmaker?
A Rainmaker is someone who wants to see their money have an impact in the local economy. They are someone who sees the value in supporting small business in their community. A Rainmaker is someone who sees the benefit of a revolving form of support where their money can last longer than a single donation.
How are the businesses on the site selected?
Business must apply through the Rainmakers website, click here to start your application.
Basic Qualifications and Underwriting:
- Legal business in Oregon or Washington
- Business plan or marketing plan
- Cash flow
- Balance sheet
- Income statement
- Use of funds
- Corporate, partnership, LLC or other operating agreements
Do I make interest on my funding?
As a Rainmaker, you are giving a zero interest loan to the business or businesses of your choosing. However, full repayment of your loan by the business is expected.
How do I get my money back?
Like any business loan, the business makes monthly payments which the Rainmakers platform tracks. Once your loan has been fully repaid by the business you will get your money back. Refer to the lender agreement for specific details about repayment details.
How long does it take for a business to pay back my funding?
Typical loan terms are 3-5 years.
What is your business model? Are the credit unions making money on these loans?
As a non-profit organization we do not need to “make” money. We do need to cover our expenses which is why the businesses pay a fee for use of the site and why we ask our Rainmakers for small (usually $1-$5) donations when they fund a loan. The partnering credit unions do not make money on these loans. They see this as a way to support their community and their members.
Are the transactions made on your site secure?
Yes. All credit card transactions are handled by a third party vendor. This vendor meets the highest standards in secure online credit card transactions.
Is this a donation?
No. You are loaning money to a business at zero interest. Unlike rewards based crowdfunding, on this platform businesses will pay lenders back. Be aware that as with all crowdfunding, there is a risk of non-payment. If want to make a simple donation, you can make a small donation to Business Impact NW at the time of check out.
If I make a donation, is it tax deductible?
Yes. If you choose to make a donation it is tax deductible and you will be able to declare it on your federal tax return.
Why is Business Impact NW doing this?
Small businesses often have a hard time accessing traditional capital from banks and credit unions. Through a crowdfunding model we can help businesses access capital and connect with their current and potential customers.