CNote | How Money Flows Through CNote’s Impact Cash Platform

For corporate treasurers and institutional cash managers, the fiduciary responsibility is clear: maximize yield while minimizing risk. That often means optimizing liquidity strategies without compromising safety. But there’s another consideration gaining traction—how and where that cash is working while it sits.

CNote’s Impact Cash platform was built to meet that need. It enables clients to preserve capital and maintain liquidity while placing fully insured deposits with mission-driven banks and credit unions that serve under-resourced communities, creating a measurable impact without sacrificing transparency or performance.

Phase 1: It Starts with the Client

The journey begins when a client wires funds (e.g., $20 million) to a secure custodian, such as Northern Trust. This is the only step the client needs to initiate directly.

• Control and visibility: Clients retain full transparency over where their funds go.
• Secure system: Transfers happen within a closed, audited, and insured system.

Phase 2: Funds Are Distributed Through a Trusted Network

Once the transfer is complete, Northern Trust, CNote’s transfer agent and custodian, distributes the funds across a curated network of mission-aligned depository institutions, including:

• CDFI banks
• Community development credit unions
• Minority depository institutions (MDIs)
• Low-Income Designated Credit Unions (LIDCUs)
• Community banks

Deposits are typically placed in $250,000 increments to maintain full FDIC or NCUA insurance coverage. This diversification not only supports a wide range of communities but also aligns with clients’ liquidity and impact mandates.

Phase 3: Community Impact Begins and Cash Is Recycled

Now, your dollars are working. Each local depository institution uses the capital to make loans that directly support underserved communities, including:

• Small business loans to underestimated communities
• Affordable housing developments and preservation
• Disaster recovery financing
• Climate resilience and sustainability initiatives

But this isn’t a one-time impact.

Deposits That Keep Giving: The Power of Cash Recycling

As these loans are repaid, the local institutions don’t just hold onto the cash; they recycle those repayments into new loans for other borrowers in the same communities. This means:

• A single deposit can support multiple lending cycles
• Your cash has a compounding impact over time
• Local economies become more resilient and self-sustaining

Rather than sitting idle in low-yield accounts that don’t support communities, your cash is actively rebuilding neighborhoods, growing businesses, and empowering people, again and again.

The Return Loop: Visibility, Liquidity, and Peace of Mind

• Interest is paid to the client upon withdrawal
• Fees are assessed quarterly, with full transparency
• Real-time reporting is available through CNote’s digital dashboard

Liquidity is preserved with short-notice access and early withdrawal options when needed

Whether laddered or paired with other cash vehicles, Impact Cash helps clients meet their liquidity goals while amplifying their mission.

FAQs: Understanding the Mechanics

What is CNote’s role? CNote structures and manages the Impact Cash program, handling allocation strategies, onboarding and monitoring depository partners, and ensuring compliance with client-specific mandates. Its dashboard provides real-time visibility and reporting.

What does Northern Trust do? Northern Trust serves as the custodian and transfer agent, ensuring funds flow securely to and from approved institutions in a closed-loop environment.

Is my money safe? Yes. All Impact Cash deposits are fully FDIC- or NCUA-insured and held at regulated financial institutions.

How liquid is the investment? Clients can access funds with short notice. Early withdrawals are available, and laddering strategies help optimize liquidity and returns, especially in high-rate environments.

Why This Matters: From Cash to Community Impact

Impact Cash turns your cash holdings into catalysts for change. Rather than sitting in low-yield accounts that don’t align with your values or drive real economic activity, your dollars are now building a more inclusive, resilient economy.

• It’s seamless. It’s transparent.
• And it’s impactful, again and again.

Your balance sheet can be more than numbers. It can be a force for good.

Ready to align your cash with your values? Learn more about Impact Cash Program Here