Donor: Opportunity Finance Network (OFN)

About: The Finance Justice Fund, managed by the Opportunity Finance Network (OFN), provides financing to OFN member Community Development Financial Institutions (CDFIs) to support their mission-driven lending activities. This fund offers low-cost, fixed-rate loans and grants to CDFIs serving under-resourced communities, with a focus on addressing poverty and disinvestment. The fund aims to support innovative strategies and capacity building, ensuring that CDFIs can effectively serve their communities.

The Finance Justice Fund is designed to support CDFIs that are committed to serving under-resourced communities, including Black, Latinx, Native, rural, and other marginalized groups. By providing low-cost loans and grants, the fund helps CDFIs expand their lending activities, build capacity, and implement innovative strategies to address the unique challenges faced by these communities. The fund prioritizes applications from CDFIs with less than $25 million in total assets and those that have not received funding from the Finance Justice Fund in the past year.

One of the key features of the Finance Justice Fund is its flexible loan terms. CDFIs can access loans with terms of up to 10 years, with interest rates ranging from 3.25% to 5.5%, depending on the loan duration and use of funds. Climate-focused initiatives may be eligible for lower interest rates, reflecting the fund’s commitment to supporting sustainable development. In addition to loans, the fund offers grants ranging from $125,000 to $250,000, which can be used for various purposes, including operations, loan capital, subsidies, and capacity building.

The application process for the Finance Justice Fund is straightforward, with a rolling submission timeline. OFN reviews applications based on the proposed use of funds and the extent to which the funds will serve under-resourced communities. The fund’s selection criteria prioritize innovative strategies and the necessity of the grant to support the CDFI’s mission. OFN is committed to supporting diverse communities and offers translation and assistive services to ensure that the application process is accessible to all.

In summary, the Finance Justice Fund is a valuable resource for OFN member CDFIs, providing the financial support needed to serve under-resourced communities effectively. With flexible loan terms, generous grants, and a commitment to supporting innovative strategies, the fund helps CDFIs address the challenges of poverty and disinvestment in their communities.

Focus: Community Development, Financial Inclusion, Poverty Reduction, Capacity Building, Innovative Strategies

Region: United States

Eligibility:
– OFN member CDFIs
– CDFIs serving under-resourced communities
– CDFIs with less than $25 million in total assets may have priority
– CDFIs that have not received Finance Justice Fund loans and grants in the past year may have priority

Benefits:
– Low-cost, fixed-rate loans of up to 10 years
– Grants ranging from $125,000 to $250,000
– Flexible use of funds for operations, loan capital, subsidies, and capacity building
– Support for innovative strategies and capacity building
– Priority for climate-focused initiatives

Terms:
– Community Development Financial Institutions (CDFIs): Financial institutions that provide lending and financial services to under-resourced communities.
– Under-resourced Communities: Communities that experience disproportionately high rates of poverty and disinvestment, including Black, Latinx, Native, rural, and other marginalized groups.
– Capacity Building: Activities that strengthen an organization’s ability to fulfill its mission effectively.
– Climate-focused Initiatives: Projects and strategies that address environmental sustainability and climate change.