WASHINGTON and SAN
FRANCISCO, Nov. 12, 2020
/PRNewswire/ -- Opportunity Finance Network (OFN) and Twitter
(NYSE: TWTR) today announced the launch of the Finance Justice
Fund, a new socially responsible investment that aims to bring
$1 billion in capital from corporate
and philanthropic partners to the most underserved individuals and
communities in America. As the first corporate investor in the
Fund, Twitter is committing $100
million to the Fund for long-term, below market rate loans,
making a $1 million grant and ongoing
contributions to support the fund and the disbursement of
loans.
The Finance Justice Fund will operate through the nation's
network of community development financial institutions (CDFIs).
CDFIs are lenders with a mission to serve low-wealth rural, urban,
and Native communities. There are more than 1,100 CDFIs nationwide
managing more than $222 billion and
creating thriving small businesses, affordable homes, critical
community services, quality jobs, and economic opportunity for all.
In 2018, customers of OFN member CDFIs were 85 percent low-income,
58 percent people of color, 48 percent women, and 26 percent rural
populations. CDFIs have worked in these markets, which are often
considered high-risk by mainstream lenders, for more than 40
years.
"The Finance Justice Fund will help to address long-standing
issues of disinvestment, the racial wealth gap, and persistent
poverty in our country," said Lisa
Mensah, President and CEO of OFN. "I commend Twitter for
stepping up as the first corporate investor, for investing
substantial capital, and for making a large grant to a fund that
will deliver loans through CDFIs to underserved people and places
across the country. I invite more corporate and philanthropic
partners to invest in this unique opportunity to advance
justice."
Twitter also announced a new partnership with Operation HOPE, a
non-profit organization that provides financial literacy and
economic inclusion for underserved communities. Twitter will
reinvest some of its returns from the below market rate loans made
to CDFIs to fund five Operation HOPE Inside centers that provide
financial coaching and tools to clients of Black banks,
minority-serving financial institutions or institutions serving
underserved communities across the U.S.
"Twitter is proud to partner with OFN and Operation HOPE to
bring more support to Black, Latinx, Indigenous, and rural
borrowers," said Ned Segal, Chief
Financial Officer of Twitter. "By allocating a portion of our cash
to the new Finance Justice Fund, Twitter will provide access to
capital through loans to invest in underserved communities.
Interest income from Twitter's investment in the Finance Justice
Fund will then be used to support Operation HOPE's financial
coaching initiatives. This is renewable, durable corporate
philanthropy that creates a blueprint for other companies to join
us in this critical work."
OFN will begin accepting applications in December from
qualifying OFN member CDFIs to the Finance Justice Fund.
Prospective CDFI borrowers who lack access to traditional capital
and meet other lending criteria can contact OFN member CDFIs to
qualify for loans from this fund.
OFN's member CDFIs will use the fund's flexible and patient
capital as they work on the ground to expertly identify lending
opportunities and provide technical assistance to create the
maximum impact for individuals and neighborhoods.
About OFN
Opportunity Finance Network (OFN), the national network of
community development financial institutions (CDFIs), strives to
ensure low-income and other under-resourced communities have access
to affordable, responsible financial products and services. Members
of OFN are CDFIs that deliver responsible lending to help
low-income communities join the economic mainstream. Through 2018,
OFN's network originated $74.2
billion in financing in rural, urban, and Native
communities. This financing has helped to create or maintain more
than 1,560,000 jobs, start or expand more than 419,177 businesses
and microenterprises, and support the development or rehabilitation
of 2.1 million housing units and more than 11,500 community
facility projects.
About Twitter, Inc. (NYSE: TWTR)
Twitter is what's happening in the world and what people are
talking about right now. From breaking news and entertainment to
sports, politics, and everyday interests, see every side of the
story. Join the open conversation. Watch live-streaming events.
Available in more than 40 languages around the world, the service
can be accessed via twitter.com, an array of mobile devices, and
SMS. For more information, please visit about.twitter.com, follow
@Twitter, and download both the Twitter and Periscope apps at
twitter.com/download and periscope.tv
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SOURCE Opportunity Finance Network