We are pleased to announce that NeighborWorks Capital has received a Finance Justice Fund award from Opportunity Finance Network (OFN). The award includes a $5 million, 10-year loan and a $125,000 grant. NeighborWorks Capital will use the funding to further expand our growing permanent lending activity and provide longer-term enterprise financing solutions to organizations serving Black, Latinx, Indigenous, and rural communities.
The longer-term permanent lending solution can be used to finance an existing project or to purchase, rehabilitate our build a new apartment or mixed-use development. Enterprise capital will help organizations with the start-up and growth phases of new lines of business and expanding the geographic reach of current business lines. The loan from OFN allows us to offer a longer-term enterprise loan at a time of growth for many organizations, so they can focus on growth and not be burdened by a short repayment period.
“This capital will help address long-standing issues of disinvestment, the racial wealth gap, and persistent poverty in our country,” said OFN President and CEO Lisa Mensah. “CDFIs, like NeighborWorks Capital, and Finance Justice Fund partners and investors are helping to advance social, economic, and racial justice one loan at a time,” said Mensah.
About the Finance Justice Fund
Launched by OFN in 2020, the Finance Justice Fund is a socially responsible investment that aims to bring $1 billion in capital from corporate and philanthropic partners to individuals and communities in America most underserved by mainstream finance. The goal of the Finance Justice Fund is to drive affordable, responsible capital to Black, Latinx, Indigenous, and rural communities. For a full list of Fund partners and awardees, please visit OFN’s Finance Justice Fund page.