Community Development Financial Institutions

Diverse Community Capital

Building the capacity of CDFIs to support small businesses

Wells Fargo proudly supports more than 150 CDFIs of all sizes across the country. We provide tailored investment and debt strategies to support CDFIs’ efforts in both rural and urban communities to finance affordable housing, community facilities, and small and micro businesses.

  • Equity equivalent (EQ2) investments: Low-rate, long-term, unsecured, subordinate debt
  • New Markets Tax Credit program: Equity and debt investments for commercial development in low-income areas, with reduced borrowing costs for non-profits
  • Senior debt: Shorter-term, floating-rate for use as core lending capital by larger CDFIs
  • Structured debt: Layered, special purpose funds sponsored by CDFIs

Our Team

Megan Teare
Director of Equity Equivalent Investments
megan.g.teare@wellsfargo.com
612-316-0512

Lee Winslett
Director of New Markets Tax Credits
lwinslet@wellsfargo.com
619-699-3037

Next Fund for Innovation

In its pilot year, this exciting new fund supports business models, products, platforms, or processes holding the ability to drive transformational change and scale in the Community Development Financial Institutions (CDFI) industry. Through this exciting new fund, OFN will provide flexible capital for up to three CDFIs in amounts ranging from $500,000 to $2,000,000.

The NEXT Awards program (2007-2017) developed partnerships among Wells Fargo, OFN, the John D. and Catherine T. MacArthur Foundation, Prudential Financial, and the Kresge Foundation, and continues in the NEXT Fund for Innovation.

Wells Fargo NEXT Awards for Opportunity Finance

From 2007-2017, the Wells Fargo NEXT Awards for Opportunity Finance celebrated CDFI innovation and impact by investing more than $75 million in the nation’s most promising and innovative CDFIs. The program recognized CDFIs that make a difference in their communities, and worked to propel them to a higher level of growth, success, and staying power.

The NEXT Awards program developed partnerships among Wells Fargo, OFN, the John D. and Catherine T. MacArthur Foundation, Prudential Financial, and the Kresge Foundation, and while the Awards program ended in 2016, it is being continued through the NEXT Fund for Innovation.

Wells Fargo has committed $75 million to CDFIs across the country through the Wells Fargo Works for Small Business®: Diverse Community Capital program. The program makes available $50 million in lending capital and $25 million in grant capital to be disbursed over three years. Round 4 is now closed. Round 5 will open November 1.

Program components

  • Grant Capital. Available to CDFIs to build their financial, operational, and human capacity to serve diverse small businesses.
  • Debt Capital. Available to CDFIs to build their lending capital to serve diverse small businesses. Financing will include senior debt and subordinated debt.
  • Social Capital. The program offers activities, such as mentorship and peer learning, to build effective support networks and social infrastructure among CDFIs for the purpose of increasing lending to diverse small businesses and is offered through Opportunity Finance Network .

Previous awardees

Round one (2016)

Access to Capital for Entrepreneurs, Inc. (ACE) (Atlanta, GA)

Ascent Funding (Portland, OR)

Bridgeway Capital Inc. (Pittsburgh, PA)

Carolina Small Business Development Fund (Raleigh, NC)

Community Investment Corporation (CIC) (Chicago, IL)

CommunityWorks (Greenville, SC)

Craft3 (Ilwaco, WA)

ECDC Enterprise Development Group (Arlington, VA)

Forward Community Investments, Inc. (Madison, WI)

Metropolitan Economic Development Association (Meda) (Minneapolis, MN)

Montana & Idaho CDC (Missoula, MT)

Natural Capital Investment Fund, Inc. (NCIF) (Shepherdstown, WV)

Pacific Community Ventures (San Francisco, CA)

Pathway Lending (Nashville, TN)

WWBIC, The Wisconsin Women's Business Initiative Corporation (Milwaukee, WI)

Round two (2016)

Accion serving Arizona, Colorado, Nevada, New Mexico, and Texas (Albuquerque, NM)

California FarmLink (Santa Cruz, CA)

Community First Fund (Lancaster, PA)

Four Bands Community Fund (Eagle Butte, SD)

Fresno CDFI (Fresno, CA)

Justine PETERSEN (St. Louis, MO)

Northwest Native Development Fund (Nespelem, WA)

PIDC Regional Development Corporation (Philadelphia, PA)

Self-Help Ventures Fund (Durham, NC)

Tampa Bay Black Business Investment Fund (Tampa, FL)

VEDC (Van Nuys, CA)

WomenVenture (Minneapolis, MN)

Getting started

Helping small businesses start, stabilize, and grow

Arithmetic Solutions

A math tutoring company in California stays afloat – and expands nationally – thanks to help from a financial institution that Wells Fargo recently awarded more than $2 million in lending capital and grant funds.

See Full Story

 

Hope Enterprise Corporation

This nonprofit in Jackson, Mississippi, will use a $2 million grant from Wells Fargo to support commercial lending, outreach, and more for minority- and women-owned small businesses.

Read Story