Funds will pass through eligible CDFIs — financial first responders — with less than $20M in assets
Morgan Stanley and Opportunity Finance Network (OFN) announced Morgan Stanley has awarded $5 million in funding to OFN for pass-through grants of approximately $50,000 – $150,000 to eligible community development financial institutions (CDFIs) with less than $20 million in assets. This funding will help CDFIs support communities disproportionately affected by COVID-19 and will strengthen the ability of the mission-based lenders to support COVID-19 rebuilding and recovery efforts.
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“With its generous grant, Morgan Stanley is empowering our member lenders that specialize in serving these communities to grow and remain strong in these uncertain times.”
“We continue to fight for small businesses, nonprofits and community-based organizations that have been hit hardest by the economic impact of COVID-19 and for communities that continue to struggle against persistent racial and economic inequality,” said Lisa Mensah, President and CEO of OFN. “With its generous grant, Morgan Stanley is empowering our member lenders that specialize in serving these communities to grow and remain strong in these uncertain times.”
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CDFIs are private financial institutions that provide fair, transparent financing and financial education to people and communities underserved by mainstream financial institutions. There are more than 1,100 CDFIs working in all 50 states, the District of Columbia, Guam and Puerto Rico. OFN’s more than 300 members serve 58% people of color, 85% low-income and 26% rural communities, and 48% women (OFN Annual Member Survey, 2018). Nationwide, the CDFI industry manages more than $222 billion.
“Smaller CDFIs in OFN’s national membership often have the hardest time attracting resources,” said Joan Tally, Managing Director of Morgan Stanley’s Community Development Finance. “Morgan Stanley shares OFN’s commitment to community investment, and we are pleased to continue to support their mission with this funding, which will enhance CDFIs’ ability to meet the pressing needs in their communities.”
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