Loan Terms: The Fund provides low-cost, fixed-rate loans of up to 10 years to CDFIs. At this time, 5-year loans bear interest at 2% and 10-year loans bear interest at 3%. These loan terms may vary depending on the availability of funds and terms negotiated with investors.
From time to time, Equity Equivalent (EQ2) capital may be available. CDFIs can indicate their interest in EQ2 capital in their application.
Grant Terms: CDFIs approved for Finance Justice Fund loans are eligible to receive a grant. Being eligible for a grant is not a guarantee that a CDFI will receive a grant. Grant amounts for eligible CDFIs will vary and depend on the amount of grant funds available to disburse. If awarded, each grant will typically range from $125,000 to $250,000.
Grant proceeds can be used for operations, loan capital, loan loss reserves, capacity building, or other purposes that support the objectives of the Finance Justice Fund.
Selection Criteria: OFN will select CDFIs for underwriting based on the extent to which they serve the most under-resourced communities, including Black, Latinx, Native, rural, and other communities that have experienced disproportionately high rates of poverty.