Alternative Funding Sources

Hello Everyone!

Today we will talk about alternative funding sources that we can utilize as entrepreneurs to fund our business plans. There are plenty of alternative sources of funding than the traditional bank loans.

Some small business owners and entrepreneurs can get assistance from angel investors and venture capitalist, but today we will take a look at community development financial institutions like cdfi.org or opportunityfinance.net.

Community development financial institutions finance community businesses, including small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing.

Cdvca.org and Opportunityfinance.net offer different types of financial opportunities. Opportunityfinance.net offers financing opportunities by lending directly to Member CDFIs through the OFN Financing Fund, which pools capital from multiple sources to on-lend to its Members. Financial products include: Unsecured Senior Loans, Unsecured Subordinated Loans and Secured Participation Loans.

Cdvca.org is a network for the field of community development venture capital (CDVC) investing. CDVC funds provide equity capital to businesses in underinvested markets, seeking market-rate financial returns, as well as the creation of good jobs, wealth, and entrepreneurial capacity.

Requirements and qualifications to obtain the financing from either of Cdvca.org or Opportunityfinance.net are a little different. All OFN Members in good standing can apply for loans. An OFN Member in good standing is current on Member dues payments, has submitted the most recent FY Member Survey, and is not in default on an OFN Financing Fund agreement.

As for CDVCA, to obtain financing, one must choose out of their list of National and International and even CDVC Central Funds. There are so many to choose from and as long as you are improving the lives of low-income people and distressed communities, you probably qualify for the funding.

There is all type of helpful information on both of these websites. The OFN and the CDVCA sites have research, consulting services, news blogs and even publications on investments information tools to help with the journey of your financial investment needs.

There are some advantages and disadvantages when using alternative financing. Being affiliated with other CDFI members is a huge advantage that can help you in a long way. A disadvantage would be that you may have to compromise locations for your business. It depends on what’s important to you and your business. Thanks for your time again, Real Talk!

Corey