Opportunity Finance Network (OFN) today announced that it is making a $2.5 million loan to Clearinghouse CDFI (http://www.clearinghouseCDFI.com), a Lake Forest-based financial institution that provides direct loans for affordable housing, community development projects, small business and other qualified Community Reinvestment Act (CRA) activities benefiting low-income people across California. Clearinghouse CDFI will use the new capital to significantly expand its small business lending.

The Opportunity Finance Network is a $4-billion national organization of 167 financial institutions focused on financing strategies to help people join the economic mainstream, including programs to combat predatory lending and increase home ownership in low-income areas.

OFN President and CEO Mark Pinsky said: "We are pleased that the largest single loan we have ever made for small business financing will benefit California's small businesses through Clearinghouse CDFI. Clearinghouse CDFI is one of the best of the new breed of emerging financial institutions dedicated to creating opportunities for people who are not served through traditional credit channels."

Clearinghouse CDFI President & CEO Douglas Bystry said: "This loan will make a major impact in addressing unmet credit needs throughout California. Every loan we make benefits the community in a measurable way. Opportunity Finance Network's backing will sharply accelerate our small business lending in California."

Loans from Clearinghouse CDFI benefit disadvantaged businesses and communities in California, with 75 percent of their loans going to non-profit organizations. To date, Clearinghouse CDFI has financed the development or rehabilitation of more than 2,100 housing units in California to date. Clearinghouse has lent a total of $150 million with losses of less than one- tenth of one percent. In 2005, Clearinghouse CDFI was responsible for: single-family loans of nearly $71 million; and New Markets Tax Credit lending of $75 million.

The loan is a product of a partnership Opportunity Finance Network has with Bank of America to increase small business and microfinance in California and across the nation.

ABOUT OPPORTUNITY FINANCE NETWORK

The Opportunity Finance Network is the new $4 billion national organization of 167 financial institutions that finds and finances opportunities that others overlook. Formerly the National Community Capital Association, OFN was launched in January 2006 to advance its 20-year track record with a bold, new emphasis on high-volume and high-impact financing strategies to align capital with social, economic, and political justice. OFN's financing, advocacy, and knowledge sharing are dedicated to closing the gap between promising opportunities and real accomplishments for American people, communities, and markets that are outside the economic mainstream today. For more details about Opportunity Finance Network initiatives for 2006 and beyond, go to http://www.opportunityfinance.net.

Source: prnewswire