Possibility Finance Network Receives Most significant Grant in 35-Yr History from Wells Fargo

$25M grant will target racial prosperity gap and persistent poverty by means of Finance Justice Fund

WASHINGTON, Jun 17, 2021–(Small business WIRE)–Chance Finance Network (OFN) introduced that Wells Fargo is committing a $25 million grant to its Finance Justice Fund to enable deal with systemic limitations to funds in communities about the region. Managed by Possibility Finance Network, the Finance Justice Fund aims to address the racial wealth hole and persistent poverty by delivering funding through neighborhood development financial institutions (CDFIs) to Black, Latinx, Indigenous, rural, and other communities with less entry to common monetary products and services.

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Possibility Finance Community receives premier grant in its history from Wells Fargo to assistance the Finance Justice Fund serving numerous communities. (Graphic: Wells Fargo)

“Wells Fargo’s historic grant contribution sets a precedent for companies looking for to make an impact in minimal-money and underserved communities. CDFIs can offer the optimum affect programs when financial debt cash is coupled with grants that permit them to establish their potential and net assets. This grant indicates that CDFIs will be capable to go deeper into their communities to provide far more men and women and neighborhoods,” mentioned Lisa Mensah, president and CEO of OFN.

“Escalating compact organizations, supporting very affordable housing developers, and revitalizing financial corridors enrich communities for the long phrase,” claimed Bill Daley, vice chairman of General public Affairs at Wells Fargo. “We’ve extended recognized the expertise of CDFIs acquiring engaged OFN as a result of our Assorted Local community Cash system and now with our Open up for Business Fund. The Finance Justice Fund is a organic evolution of our deep collaboration with OFN and appreciation for the role CDFIs engage in in the financial state.”

Purpose of the Finance Justice Fund

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CDFIs will acquire awards from the Finance Justice Fund to grow lending and provide company advisory aid to modest firms. The Wells Fargo grant helps OFN deploy the Finance Justice Fund credit card debt as it catalyzes its extensive-time period, small-expense, versatile funds and accelerates the function of OFN member CDFIs in communities of shade, rural marketplaces, and places of persistent poverty. OFN envisions that when the Finance Justice Fund achieves its target of $1 billion in funds, the fund will help financing around $420 million for tiny firms, $420 million for economical housing, $70 million for consumer and other economical assist, and $90 million for neighborhood facilities in those marketplaces.

Wells Fargo investment in CDFIs

Wells Fargo has a historical past of operating with CDFIs and OFN. From 2015 to 2021, Wells Fargo supplied CDFIs who ended up expanding their lending to Black, Latinx, and other diverse smaller businesses with more than $80 million in credit card debt and far more than $94 million in grant cash by means of the Numerous Group Money system. This initiative crafted funds, engineering, and infrastructure for these CDFIs, strengthening them for the long expression and enabling them to mobilize speedier to fulfill the unanticipated demand from customers from modest enterprises throughout the pandemic. Also, the Wells Fargo Following Awards for Possibility Finance awarded the nation’s most promising CDFIs extra than $76 million from 2007 to 2016.

This $25 million grant is portion of Wells Fargo’s Open for Business Fund, a roughly $420 million tiny company restoration exertion. Through May well 31, 2021, the Open for Small business Fund is projected to reach around 35,000 smaller businesses, encouraging them retain approximately 90,000 employment.

About OFN

Possibility Finance Community, the countrywide community of CDFIs, strives to guarantee minimal-money and other below-resourced communities have entry to affordable, responsible fiscal items and solutions. Customers of OFN are CDFIs that provide responsible lending to assistance lower-cash flow communities join the economic mainstream. Through 2019, OFN’s network originated $82.7 billion in financing in rural, city, and Native communities. This financing has assisted to generate or keep much more than 1,751,000 careers, start out or extend 448,541 corporations and microenterprises, and aid the enhancement or rehabilitation of more than 2,148,000 housing units and a lot more than 12,000 neighborhood facility jobs.

About Wells Fargo

Wells Fargo & Enterprise (NYSE: WFC) is a diversified, community-based economic providers firm with $1.92 trillion in property. Wells Fargo’s vision is to satisfy our customers’ fiscal requirements and support them be successful economically. Started in 1852 and headquartered in San Francisco, Wells Fargo offers banking, investment, and home loan merchandise and providers, as nicely as shopper and industrial finance, by 7,200 spots, a lot more than 13,000 ATMs, the web (wellsfargo.com) and cell banking, and has places of work in 31 nations around the world and territories to support buyers who carry out organization in the world financial system. Wells Fargo serves just one in 3 homes in the United States. Wells Fargo & Firm was ranked No. 30 on Fortune’s 2020 rankings of America’s greatest organizations. Information, insights, and perspectives from Wells Fargo are also offered at Wells Fargo Stories.

Added data may perhaps be discovered at www.wellsfargo.com | Twitter: @WellsFargo.

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Contacts

Courtney Holsworth, (989) 572-8162
[email protected] (OFN)

Kim Erlichson, (201) 463-4243
[email protected]