BrightStreet Grant for Retirement Savings

What You Must Do to Qualify

To receive a grant, you must complete all parts of the Program:

• Repay your Loan in full, including interest
• Complete a business training program or bootcamp from an approved partner (unless BrightStreet formally waives this requirement)
• Attend at least 75% of BrightStreet’s quarterly participant meetings
• Complete and submit all information and surveys required in your Loan and Grant agreements

If you do not complete the Program, you lose eligibility for the Grant.

If you do complete the Program, your Grant amount will be determined by the repayment performance of your Community.

What Is a “Community”?

Each participant is placed into a Community:

• Each Community includes about 10–15 participants in BrightStreet’s Program
• Everyone has their own Loan
• Everyone is responsible only for their own Loan payments

However, grant amounts depend on how the Community performs as a group.

How the Grant Pool Is Created

1. BrightStreet adds up all Loans in a Community
2. 50% of the total Loan amount becomes the Grant Pool
3. Each participant has a share of the pool based on their Loan size

Your grant can never be more than 50% of your own Loan.

What Can Reduce the Grant Pool

Loan Defaults

• If a participant does not fully repay their loan:
  • The unpaid amount reduces the Grant Pool
  • That participant forfeits their share of the Grant Pool

Program Non‑Completion

• If a participant fails to complete Program requirements:
  • They are removed from the Community
  • Their share of the Grant Pool is forfeited

What Happens to Forfeited Shares?

• The remaining participants who successfully complete the Program share the forfeited amounts proportionally up to 50% of their loan amount

When and How the Grant Is Paid

Timing

• Grants are paid within 90 days after the last remaining Community member finishes repaying their Loan
• This usually happens 3–4 years after a Loan begins

Where the Money Goes

1. First, funds are deposited into the participant’s retirement account, up to legal tax limits
2. Any extra amount goes into a regular savings account

Example: Jeane’s Grant

Starting Situation

• Jeane’s loan: $20,000
• Maximum possible grant: $10,000 (50%)

Her Community

• 10 participants
• Total Community loans: $200,000
• Initial Grant Pool: $100,000 (50% of total Loans)

Jeane’s share: $20,000 ÷ $200,000 = 10%; Initial potential grant: $10,000

Problems in the Community

• Sam: $10,000 loan, repaid $6,000 → $4,000 default
• Marie: $20,000 loan, repaid $5,000 → $15,000 default

Total defaults: $19,000

Adjusted Grant Pool

• $100,000 − $19,000 = $81,000

Jeane Completes the Program and Receives her Grant

• Sam and Marie’s combined share (15%) is removed
• Remaining pool share = 85%
• Jeane’s new share: 10% ÷ 85% = 11.75%

Jeane’s grant: 11.75% × $81,000 = $9,518

Key Takeaways

• You can earn up to 50% of your Loan as a Grant
• You must repay your Loan and complete all Program requirements
• Grant amounts depend on Community performance
  • Defaults can reduce the pool
• Grant funds are primarily used for retirement savings