Finance Fund is a statewide nonprofit financial intermediary working to enable progress and inspire change within Ohio's low-income communities. By building bridges to economic development and community revitalization, we aim to create opportunities that make a better quality of life possible.
Working primarily within low-income rural and urban communities, we connect local community development organizations and small businesses with needed funding in the form of grants, loans and nontraditional financial products. These resources support a wide range of projects, including:
- Housing and Economic Development The Finance Fund initiates programs for housing
and economic development in low-income areas.
- Predevelopment Program: provides
community-based nonprofit developers access to funding for development projects.
The Predevelopment Section 8 Program: provides zero-interest loans to nonprofit organizations that wish to pursue ownership and/or management of Section 8 properties.
Linked Deposit Fund: a debt enhancement tool that enables lenders to make low-interest loans to community groups
The Economic Development Grant: issues development grants for community revitalization and job creation/retention for low-income residents.
The New Markets Loan: provides credit to business borrowers (for-profit & nonprofit) for fixed assets in qualifying low-income census tracts.
The Child Care Capital Fund: provides resources to Head Start and State of Ohio licensed nonprofit child care centers for capital improvement projects. The linked deposit model, used in the Linked Deposit Fund and the Child Care Capital Fund, provides community-based nonprofit developers access to affordable and specifically structured financing from local lenders for projects that are affordable to low-income people.
- Investments by institutions such as Calvert Foundation provide lending deposit
capital to the Finance Fund.
- Approximately 45% of the current borrower communities are rural; 55% are located in urban
communities. The Finance Fund does not track the ethnicity or gender of its borrowers.
Linked Deposit Fund has benefited people with incomes at an average of 40% of median income;
“low-income” is defined as 80% of an area’s median income.
- Finance Fund members
represent more than 150 organizations dedicated to the improvement of the quality of life in
neighborhoods and communities. Members include individuals, community development corporations,
neighborhood housing agencies, community action agencies, small businesses, religious-based
organizations, foundations, banks and other institutions.
Since 1987, the Finance Fund has invested more than $96 million in housing, economic development, childcare and Head Start projects leveraging over $759.9 million. This investment was accomplished through 2,457 awards to community-based organizations throughout the state as part of Finance Fund's core programs. Partnerships have enabled low-income persons access to 15,312 units of affordable housing, 8,991 full-time jobs, and 3,033early care and education spaces (classrooms) for 69,377 children benefiting the lives of over 116,000 Ohioans.
East Central Ohio Housing Network, Inc. and Commonwealth Capital Corporation proposed the construction of a 76-unit apartment building for the low-income elderly to be named Heritage Village in Steubenville, Ohio. The $3.8 million financial package consisted of Low-Income Housing Tax Credit equity, a public grant from the State of Ohio, and a private first mortgage loan. The organization and the first mortgage lender partnered with the Ohio Community Development Finance Fund’s Linked Deposit Fund (see Programs) to reduce the interest rate to 5.3% on Heritage Village’s 15-year mortgage. Full Story