The Opportunity Resource Fund is a tax-exempt, nonprofit community development financial institution (CDFI) that uses investor capital to finance loans to individuals and organizations that have historically been denied access to capital by traditional institutions. These loans are used for affordable housing, small business creation and community development.
Communities require the flow of investment and credit to stay healthy, however many people and communities do not have access to the credit they need to improve their lives. Credit access may be blocked by institutional barriers that have their foundation in race or class, by the cost of borrowing or because some people or organizations do not qualify for loans using traditional credit standards. In some communities financial institutions may no longer even be present.
Lack of credit to develop and maintain communities can create a cycle of disinvestment and perpetuate poverty. When community residents do not own their homes or local businesses, money paid for rent and for goods and services tends to leave the community. Without opportunities for ownership, the flow of money through a community cannot create local economic assets or move individuals out of poverty.
Community economic development builds assets in communities and enables residents of distressed areas to achieve specific economic outcomes including home ownership, meaningful jobs, earned incomes, a share in the ownership of production, and the ability to save, invest, and anticipate a retirement with security against adverse financial circumstances.
The Opportunity Resource Fund accepts donations, grants, bequests and loans from individuals, private and public foundations, religious organizations, corporations and others, and pools the proceeds to make below market interest rate loans for the benefit of the borrowers. The Fund is a state-wide loan fund dedicated to social and economic justice, working to improve communities throughout Michigan.