Social impact investing

A shutdown occurs when Congress fails to pass necessary legislation that would keep funding certain federal agencies. A shutdown does not stop everything. Mandatory government funding for Social Security , Medicare, and Medicaid benefits will continue, although the agencies that oversee these programs could face furloughs, meaning workers will be forced to take a temporary unpaid leave of absence from their jobs. Once the government is reopened, Congress can pass legislation to give back pay to furloughed workers. “Through cross-sector partnerships, we can broaden access to investment capital, particularly for communities that historically have had fewer opportunities to participate in traditional financial systems. By creating more on-ramps for locally led solutions and mission-driven entrepreneurs, philanthropy can help strengthen community resilience and long-term success,” he adds. Analyst consensus upgrades for social impact investing funds focused on microfinance institutions suggest an 8–10% return outlook through 2025, thanks to improved credit recovery rates and expanding rural banking penetration.