**Pattern Name** Kula Community Fund
**Introduction** A pioneering, interest-free, micro-loan program to support regenerative work and movements worldwide.
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**CONTEXT** To support isolated regenerative projects, and bring monetary resources to people who do not have access to traditional funding.
**PROBLEM** There is a lot of
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**Notes** Precedence – As set forth in IRS Rev. Ruling 74-587, 1974-2 C.B. 162, a micro-loan program may fit within Section 501(c)(3) parameters if it meets certain conditions: “an organization formed to relieve poverty, eliminate prejudice, reduce neighborhood tensions and combat community deterioration through a program of financial assistance in the form of low-cost or long term loans to, or the purchase of equity interest in various business enterprises in economically depressed areas, is exempt under Section 501(c)(3) of the Code.” In that IRS Ruling, financial assistance was provided to corporations or individual proprietors who were not able to obtain funds from conventional commercial sources because the poor financial risks involved. The program’s purpose was to enable the recipients of funds to start a new business or to acquire or improve an existing business. As such, it qualified as tax-exempt charitable activity.
**CONNECTED PATTERNS** **Supports** **Supported by**