What should an entrepreneurs do when traditional financial
institutions reject their
applications? The bank
explains that an enterprise is required have three solid years of operation. In
addition, the financial institutions, clearly states it does not support
companies operated by minority or economically disadvantage entrepreneurs.
Above all, the institution can’t imagine your company growing fast enough for
their lending purposes. What
should an entrepreneur do?
I’d recommend seeking funding from financial sources outside
of the traditional financial
institutions. Below I have found two websites that may help entrepreneurs in
seeking funding.
1. Opportunity Finance Network
The Opportunity Finance Network is a national network of
community development financial institutions. Primarily, the Opportunity Finance Network supplies funding to
low-income, low-wealth, and disadvantaged communities across America. The company
claims it has “ originated more than
$30 billion in financing in urban, rural, and native communities through
2011” As can be seen, the Opportunity Finance Network has supported countless
ideas supporting the development of disadvantaged communities. Not to mention
the Opportunity Finance Network believes in sticking by its investments. As a company, the Opportunity Finance
Network believes everyone should have fair access to opportunities.
To become eligible for Opportunity Finance
Network’s financial support, an organization is required to have a mission striving
to have a positive impact on low-income, low-wealth and other disadvantaged
people and communities. Originally, Opportunity Finance Network provides
funding to profit, non-profit, or community representation.
Opportunity Finance Network’s website also
exhibits its mission, core value, partners, and staff members. Companies
seeking financial backing can utilize this information to gauge if their
organization matches Opportunity Finance Networks needs. Site map: http://ofn.org/what-cdfi
2. CDFI COALITION
The
Community Development Financial Institution (CDFI) Coalition is a private
sector, financial intermediary with a focus on community development. This organization is made up of
community development banks, community development loan funds, community
development credit unions, micro-enterprise funds, community development
corporation-based lenders, and investors. Ultimately the Community
Developmental Financial Institution Coalition provides financial opportunities
to help build disadvantaged communities. Also, the CDFI offers loan and
investment opportunities for entrepreneurs with poor credit teaching them how
to manage their financial resources in an effective yet efficient manner.
In
order to retain a funding from a CDFI, the organization seeking financing must
meet the United States Department of the Treasury’s eligibility requirements. Each
applicant must meet these guidelines:
- Be a legal entity at the time of
certification application;
- Have a primary mission of promoting
community development;
- Be a financing entity;
- Primarily serve one or more target
markets;
- Provide development services in
conjunction with its financing activities;
- Maintain accountability to its
defined target market; and
- Be a non-government entity and not be
under control of any government entity (Tribal governments excluded).
This
information cannot be found on the CDFI Coalition’s website, nevertheless the
website is very helpful. The CDFI Coalition’s website offers information on the
companies mission as well as its services. At the same time the company shares
their countless partners and investors who have partnered together to
contribute to financing community development. In addition the
company also helps educate future and prospective borrowers on what the Café’s
purpose is and how it is intended to help them.
Hopefully
this was helpful. Don’t get discouraged when there is a will there is a way.
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