How to Apply to the Finance Justice Fund
Overview
Are you an OFN member CDFI interested in applying for financing through the Finance Justice Fund? Learn about the application process below.
OFN is committed to supporting people of all languages and abilities. To access translation services, please contact Vanessa Toure by phone (202.869.1261) or email.
Eligibility
To be eligible for the Finance Justice Fund, you must be an OFN member.
You can become an OFN member and apply to the Finance Justice Fund. Visit our membership page for details on joining OFN’s national network of mission-driven community lenders.
If you are a small business, individual, or other organization seeking financing, visit the OFN CDFI Locator.
Terms
Loan Terms: The Fund provides low-cost, fixed-rate loans of up to 10 years to OFN members. Loan terms vary depending on the availability of funds and terms negotiated with investors. Currently, 5-year loans are expected to bear interest at 3.25%–4% and 10-year loans at 4.75%–5.5%. Climate-focused uses of funds will be considered for lower rates. We also have a 7-year option.
From time to time, Equity Equivalent (EQ2) capital may be available. Applicants can indicate their interest in EQ2 capital in their application.
Grant Terms: OFN members approved for loans are eligible to receive a grant under the Finance Justice Fund. Being eligible for a grant is not a guarantee that a member will receive a grant. Grant amounts for eligible members will vary and depend on the amount of grant funds available. Grants typically range from $125,000 to $250,000.
Grant proceeds can be used for operations, loan capital, subsidies, loan loss reserves, capacity building, or other purposes that support the objectives of the Finance Justice Fund.
Selection Criteria: OFN will select members for underwriting based on the extent to which their proposed use of Finance Justice funds serves the most under-resourced communities, including Black, Latinx, Native, rural, and other communities that have experienced disproportionately high rates of poverty.
OFN strives to raise capital that supports the work of all members. However, for its Q1 2024 application round OFN is prioritizing proposed strategies focused on 1) climate products and programs for small businesses, including non-profits, and 2) other small businesses. Applications from members that have not received a Finance Justice Fund loan and grant in the past year will also have priority.
How to Apply
Complete the online application form or review a PDF copy of the application prior to submitting it.
If you have questions about applying for a loan from the Finance Justice Fund, contact Lisa Wright.
OFN is committed to supporting people of all languages and abilities. To access translation or assistive services, please contact Tamara Frye by phone (215.320.4340) or email.
Timeline
OFN is accepting applications on a rolling basis. If you have submitted an application at any time, your application is in OFN’s applicant pool, and you do not need to take any further action.
If you have a new proposed use of Finance Justice Fund loan and grant funds, we encourage you to submit a new application.
FAQs
The following is a list of answers to questions regarding the Finance Justice Fund.
For additional information about becoming an investor in the Finance Justice Fund, please contact Brendon Miller. To learn more about applying for a loan from the Finance Justice Fund, please contact Lisa Wright.
What are the minimum and maximum loan sizes?
The minimum loan size is $100,000, and the maximum is $10 million. The maximum loan size will vary depending on available capital.
What will the size of the grants be?
OFN members approved for Finance Justice Fund loans will be considered for a grant. Grant amounts typically range from $125,000 to $250,000. Members with total assets less than $25 million or members engaged in climate-focused strategies may be eligible for larger grants, but we recommend that the success of your strategy should not depend on a Finance Justice grant greater than $250,000.
Is there any type of lending that is ineligible for the Fund?
No, lending to all sectors is an eligible use of funds.
What are the permitted/required uses of loan capital?
Loan capital is intended to support new lending activity.
Are OFN members that have already received a Finance Justice Fund loan and grant eligible for additional funding?
Yes. If your organization has already received a Finance Justice Fund loan and grant, OFN still encourages you to apply for additional funding.
Currently, based on investor goals, OFN is prioritizing proposed strategies focused on 1) climate products and programs for small businesses, including non-profits, and 2) small business lending initiatives. Applications from OFN members that have not received a Finance Justice Fund loan and grant in the past year will also have priority.
As investor goals allow, OFN prioritizes applications from members with total assets less than $25 million and members that have not yet received a loan and grant. However, OFN will consider all applications and encourages all interested members to apply to the Finance Justice Fund. Applications help OFN design financing programs and demonstrate member demand to potential investors.
If I have submitted an application for funding, when will I be notified if my organization has been selected to be underwritten for a loan? Will my application receive priority consideration over new applications?
OFN reviews all applications in the applicant pool each quarter. Applications not selected for underwriting will automatically remain in the applicant pool for future evaluation.
OFN strives to raise capital that supports the work of all our members. As investor goals allow, OFN prioritizes applications from members with total assets less than $25 million and members that have not yet received a Finance Justice Fund loan and grant.
The Finance Justice Fund application says that the full amount of an approved loan must be drawn at closing. What if I know I cannot draw all the capital I want to borrow from the Fund at closing?
As long as capital is available, members are eligible to reapply for both additional debt and grant funds.
How quickly can I be approved for these funds?
Overall, OFN will balance deployment speed with our commitment to reach more of our members, particularly those with less access to capital. The Finance Justice Fund’s goal is to provide long-term financing.
Will members be able to renew their Finance Justice Fund loans?
Renewals will be subject to capital availability.
What can grant funds be used for?
Grant proceeds can be used for operations, loan capital, subsidies, loan loss reserves, capacity building, or other purposes that support the Fund’s objectives to support mission-driven community lenders serving rural, urban, Native, and other communities (e.g., women and veterans) experiencing disproportionately high rates of poverty and disinvestment.
What selection criteria will you use for grants?
OFN will select recipients for grants based on the extent to which the grant is necessary to support its strategy, and/or to support innovative strategies.
Can I make multiple draws?
In most cases no. If capital is available, members are eligible to reapply for both debt and grant funds. OFN expects the Fund to remain open and is continuing to successfully fundraise for the Finance Justice Fund.
When are grant decisions made?
Grant decisions are made at the same time as loan decisions.
What are the reporting requirements?
Client/beneficiary impact reporting is required on an annual basis through the OFN Annual Member Survey. In some cases, a member will be required to report additional output and outcome metrics, particularly for climate-related lending. Financial reporting is required on a quarterly basis including, financial, portfolio, and covenant compliance.
There is a communications requirement for borrower stories.
Is there a deployment period requirement?
There is not a required deployment period but the loan must typically be fully drawn at closing and interest will begin accruing at that time.
Are for-profit CDFIs eligible for a grant?
Yes, but there may be some limitations.
I am a member of OFN but not yet a certified CDFI. Am I eligible to apply for the Finance Justice Fund?
Yes.
What is the definition of a client/beneficiary?
Beneficiaries and/or clients are defined, consistent with the OFN Annual Member Survey, as all individuals your organization serves in a fiscal year. To the extent that your organization provides products and services to organizations, as opposed to individuals, beneficiaries/clients refers to the end individuals served by those organizations. For example, the beneficiaries/clients of a small business loan are the employees of that business borrower. The beneficiaries/clients of a loan to an affordable housing developer are the number of expected tenants in the property financed.