OFN is an important source of affordable and flexible capital for the CDFI industry. Foundations, banks, government agencies, and faith-based and other mission-driven organizations turn to OFN to help leverage capital into social, economic, and political justice.
Currently, OFN manages more than $980 million in capital and offer a range of products and services to help CDFIs lend, invest, and make transformational change in markets underserved by mainstream banks.
Direct Lending to CDFIs: We maintain an on-balance sheet portfolio that provides direct loans to and in participation with our member CDFIs.
Off-Balance Sheet Partner Funds: We help partners looking to invest in CDFIs create and manage off-balance sheet funds that drive change.
Asset Management: We provide underwriting, monitoring, and other asset management services to institutional investors, helping them invest capital in CDFIs to create an impact.
If you are a CDFI interested in learning about OFN CDFI financing products, contact Lisa Wright, SVP for Financial Services.
For information about the BGP, contact Andrea Longton, SVP for Financial Services at 202.618.6101.
For partners looking to invest in CDFIs through OFN, contact Beth Lipson, Chief Financial Officer, at 215.320.4315 to learn more.
OFN’s financial products provide our member CDFIs with affordable, flexible capital to lend to consumers, small businesses, and community and affordable housing projects in underserved markets nationwide.
With this capital, we help our members provide opportunity and drive impact —jobs, safe affordable housing, financial and physical health, and more — in rural, urban, and Native communities across the U.S.
OFN Financing Fund
OFN raises capital from private sector, philanthropic, and government partners to create a source of attractive capital for our CDFI members. OFN financial products include: Unsecured Senior Loans, Unsecured Subordinated Loans, and Secured Participation Loans.
For information about OFN financing, contact Lisa Wright, SVP for Financial Services.
OFN works with partners to create and manage off-balance-sheet funds that invest in CDFIs. These funds help CDFIs drive impact by providing capital and opportunities to underserved communities.
Current Partner Funds
The Finance Justice Fund is a new socially responsible investment that aims to bring $1 billion in capital from corporate and philanthropic partners to individuals and communities in America most underestimated by mainstream finance. The Finance Justice Fund will help address long-standing disinvestment issues, the racial wealth gap, and persistent poverty nationwide.
Minority and women-owned small businesses, and other underserved local businesses, are facing unprecedented challenges as they navigate COVID-19. The Grow with Google Small Business Fund will help these businesses—especially those in distressed communities—survive this unprecedented crisis. The Fund will allow community development financial institutions (CDFIs) to support both the short-term recovery and long-term financing needs of America’s small businesses.
Past Partner Funds
CDFI Community Investment Fund I
OFN and Woodforest National Bank created the CDFI Community Investment Fund I in 2017 to provide essential equity equivalent investments (EQ2s) to CDFIs in geographically underserved communities.
The Fund provides cost-effective, flexible, subordinate long-term loan capital for CDFIs. Woodforest National Bank, a mission-focused, full-service retail and commercial bank headquartered in The Woodlands, TX, is committed to increasing equity-type investments and lending to CDFIs and teamed with OFN to design, market, and manage the fund.
This initiative is part of Woodforest's Small Business Growth Initiative, a comprehensive and multifaceted approach aimed at building America's small businesses and their ecosystems.
Good to Grow CDFI Investment Fund LLC
OFN and HSBC Bank USA, N.A. jointly created an investment fund, Good to Grow CDFI Investment Fund LLC, (the “G2G Fund”) to make long-term, flexible equity equivalent investments to CDFIs that are active in certain geographic markets, outlined below. OFN and HSBC Bank capitalized the G2G Fund totaling, $25 million. OFN managed the origination, underwriting, and closing of long-term, flexible equity equivalent loans to approved CDFIs.
For information about OFN partner funds, contact Lisa Wright, SVP for Financial Services.
Leveraging decades of CDFI expertise, OFN provides underwriting, monitoring, and training services for third-party investments in CDFIs to make it easier for institutional investors to invest in CDFIs.
We've underwritten loans for asset management clients since 2002, bringing our significant CDFI underwriting experience to these partnerships to help build and manage successful portfolios of CDFI investments.
To learn more about OFN’s Asset Management services, contact Lisa Wright, SVP for Financial Services.
CDFI Bond Guarantee Program (BGP)
OFN is a Qualified Issuer for the CDFI Bond Guarantee Program (through the CDFI Fund), providing long-term, low-cost debt to eligible CDFIs.
Enacted as part of the Small Business Jobs Act of 2010, the BGP is an innovative federal credit program that offers credit-worthy certified CDFIs access to affordable long-term capital.
The US Department of Treasury’s CDFI Fund administers the BGP. The minimum Bond issue is $100 million and the minimum issue size per CDFI is $10 million. Designed to operate at no cost to taxpayers, the BGP enables participating CDFIs to expand and deepen their work towards economic growth and opportunity.
Qualified Issuer (QI)
OFN is an approved Qualified Issuer (QI) under the BGP. QIs assemble and submit applications for the BGP and issue Bonds on behalf of the applicant CDFIs.
To participate in a Bond issuance, CDFIs must first engage QI, which acts as Program Administrator and Servicer for the Bond Issue, much as a Bond Authority or State Finance Agency does for private activity bonds. QIs also apply for Guarantees and issue Bonds on behalf of CDFIs.
All Bond proceeds are passed through QIs to Eligible CDFIs, and must be used to finance eligible activities, including affordable, multifamily rental housing and homeownership, community facilities, charter schools, community health clinics, small business, and commercial real estate.
To date, OFN is QI for 15 CDFIs which have a total of $552 million in bonds approved.
To learn more about how your CDFI can partner with OFN to apply for the BGP, contact Andrea Longton, SVP of Financial Services, at 202.618.6101.