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Program Summary:
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The
Opportunity Finance Network (formerly National Community Capital
Association), a network of more than 170 private-sector community
development financial institutions (CDFIs), provides financing, training,
consulting, and advocacy for CDFIs. Active in all 50 states, and
internationally, the network invests in small businesses, quality
affordable housing, and vital community services that benefit
economically disadvantaged people and communities. Opportunity Finance
Network is committed to leading the community development finance system
to scale through capital formation coupled with policy and capacity
development.
Opportunity Finance Network is a resource for assistance with strategic
analysis and strategic planning, mergers and acquisitions, branding and
marketing, and market research. Services include paid consulting
assistance, an annual national conference for the field, regional events,
and publications. Opportunity Finance Network is the fiscal agent for the
CDFI Data Project, an industry collaborative that ensures access to and
use of data to improve practice and attract resources to the CDFI field.
Supported by The John D. & Catherine T. MacArthur Foundation, the
Fannie Mae Foundation, and The Ford Foundation, the Data Project convenes
leading organizations in the CDFI industry. Other Opportunity Finance
Network activities include educating investors about the field, advising
banks, national religious groups, and others about their own loan
activities, and contracting with the federal government to coordinate
assistance to Native American groups.
While Opportunity Finance Network primarily provides loans, two types of
grants periodically are available for CDFIs: net worth or equity grants
with financial intermediaries, and program development grants that vary
over time. As one example, support was provided to groups that were
increasing their capacity to do lending for home-based or center-based
child care. Grantees could use their funding to increase net worth or to
build capacity through training of lenders, development of internal
systems, etc. Grants are given as program development support, and all
are performance based, attached to a covenant based upon an assessment of
capacity and tied to performance gains. To get/keep money, or to have
some loan dollars forgiven, the recipient must meet certain agreed-to
conditions. In some cases an RFP process is used to seek grantees, and at
times outside experts help with decision making.
Currently the organization is working on ways technology can help with
knowledge transfer in capacity building. As the industry has matured, it
has become more challenging to meet the more sophisticated needs. Use of
an online network to facilitate information sharing and reduce the cost
of getting needed information is being explored.
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