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Equity Equivalent Investment Agreement is a capital product for community development financial institutions (CDFIs) and their investors. It was created in 1996 through a collaboration between Opportunity Finance Network and Citibank to expand sources of equity capital. Unlike for-profit corporations that can raise equity by issuing stock, nonprofits have traditionally built their capital base through contributions, philanthropic sources or through the accumulation of retained earnings. An EQ2 is a long-term deeply subordinated loan with features that make it function like equity.
Most reviews will include your evaluation of the employee's performance in areas such as:
Sources: http://www.financefund.org/userfiles/files/Investor%20Fact%20Sheets/investor_fact_sheet_eq2.pdf
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