Small Loans and Demand

Small Loans and Demand

Loans less than $2,000,000 are known as ‘small’ loans in the industry. There is a steady and solid demand for these loans and Pendfund Income Fund I meets this demand.


Historically, small loans were funded by trust companies, Schedule B banks and certain life insurance companies. Due to mergers and closures, many of these lenders no longer exist and this has resulted in a decline of access to this type of loan. Most life insurance companies and banks prefer loans of  over $3MM to $5MM due to economies of scale.

From a borrower’s standpoint, small loans obtained from larger institutions and banks can be conditional on the borrower’s agreement to the cross-selling of lines of credit, inventory financing, credit card services and cash-handling facilities. These conditions and other cross-collateral measures are often not appealing to borrowers. Pendfund Income Fund I offers streamlined loans and eliminates this problem for borrowers.

Fund Introduction

The mandate of Pendfund Income Fund I is to provide Investors fixed-income, a functional return and secured capital.

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Risk Management

Pendfund Income Fund I invests in a low-risk asset class maintaining a minimum of 70% investment grade mortgage loans in its portfolio.

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Spreads, Recessions and Returns

Commercial mortgages are insulated from short term economic correction caused by changes in economies.

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