Overview

A gap exists between financial services available to people in the economic mainstream and low-income and low-wealth people and communities. OFN’s Member network of Community Development Financial Institutions (CDFIs) helps bridge that gap by bringing capital and services to low-income and low-wealth people and communities so they can start and expand businesses, build and purchase homes, and develop needed community facilities.

Get Involved

Opportunity Finance Network is the nation’s leading network of CDFIs, with 172 CDFI members in 50 states serving low-income and low-wealth people and communities. OFN Members manage approximately $7 billion in capital, and provide annual financing of more than $2 billion by serving four primary sectors: small business, housing, community facilities, and consumer. Net charge offs for CDFIs of 2.49% in 2009, were lower than at FDIC-insured institutions.

Corporate and Foundation funders and investors support OFN in two ways:

1. Through General Operating Support

   • Operational funding for our primary programmatic areas: Financing, Policy, and Knowledge Sharing. Together these programs support low-income housing, small business finance, financial literacy, the CARS™ rating system, training and capacity building programs for CDFIs, and administration.

2. Through Equity Grants or Equity Loans

   • Equity grants allow each dollar contributed to leverage up to $27 in new lending to CDFIs, which in turn serves low-income and low-wealth people and communities. 100% of all equity grants build the OFN Financing Fund, without incurring any overhead costs.

   • Equity Loans provide OFN with low-cost, long-term capital that allows OFN to leverage the funds by relending to CDFIs.

OFN’s Financing Fund has been financing CDFIs for 20 years, providing cumulative investment of more than $100 million with no losses to date. OFN’s Financing Fund has over $62 million in loans outstanding to CDFIs, has led the industry by developing performance-based lending to CDFIs, and has created applied financing innovations such as the Equity Equivalent (EQ2). OFN's Financing Fund provides loans and investments to all CDFI types through four financial products: unsecured debt, secondary capital investments, loan participations, and equity investments.