#United States #Washington #Opportunity Finance #MassMutual #CDFI Innovation

Opportunity Finance Network Launches Innovation Council and Capital Solutions Accelerator

In a significant advancement for community development finance, the Opportunity Finance Network (OFN) has announced the establishment of its inaugural CDFI Innovation Council. This initiative marks a pivotal step in its CDFI Innovation Initiative, which is designed to propel innovative solutions within the community development financial institutions (CDFI) sector. The announcement was made on September 18, 2025, highlighting the collaborative efforts of OFN along with strategic partners, the MassMutual Foundation and the Mastercard Center for Inclusive Growth.

The CDFI Innovation Initiative was first unveiled during the OFN40 event in the fall of 2024. It aims not only to unlock capital but also to enhance the scalability of innovation and assist CDFIs in navigating the evolving economic landscape. The initiative's mission is rooted in reshaping community development finance by developing actionable tools that increase the sector's impact nationwide.

Harold Pettigrew, the President and CEO of OFN, emphasized the initiative's bold commitment to innovation. “Our future will be defined by our willingness to innovate and develop new solutions on our terms,” he stated, underscoring the urgent need for adaptive strategies in the wake of historic opportunities and challenges faced by CDFIs over recent years. These institutions play a critical role in addressing market failures, enhancing financial inclusion, and supporting local communities.

Key Components of the Initiative

The CDFI Innovation Initiative is structured around three principal areas:
1. Innovation Council: Providing strategic insights and guidance to strengthen CDFIs.
2. Innovation Center: Fostering an environment that cultivates new ideas and practices.
3. Innovation Capital: Facilitating diverse capital solutions to support high-potential ideas from grassroots projects to established services.

Among the newly appointed members of the Innovation Council are notable figures from various sectors, including:

• - Marcus Berkowitz from Grameen America
• - Jonathan Brereton of Scale Link
• - Bulbul Gupta, President & CEO of Pacific Community Ventures
• - Liz Roberts from MassMutual

These leaders will collaborate to create actionable plans that focus on capitalization solutions, efficient financing products, operational efficiencies, and robust data research.

Dennis Duquette, President of the MassMutual Foundation, recognized the Innovation Council as a key driver in fostering a culture of creativity within the CDFI space. He stated, “By bringing together leaders from finance, philanthropy, and community development, the Council will help surface bold ideas and translate them into strategies that strengthen CDFIs.”

Capital Solutions Accelerator

The initiative also introduces the CDFI Capital Solutions Accelerator, aimed at enhancing capitalization solutions. This program is the flagship activity under the Innovation Center, designed to identify and implement new capital structures, reduce barriers to flexible funding, and foster long-term sustainability of CDFIs. Participants in the six-month program will benefit from mentorship, peer collaboration, and connections to funding networks.

The focus of the first cohort is on expanding capitalization strategies for small business lenders, with several projects set to reshape traditional funding mechanisms. Some of the initiatives include:

• - Ascendus: A strategy to transition small business clients from CDFI support to traditional bank lending.
• - Impact Ventures: A model allowing CDFIs to assist early-stage entrepreneurs with integrated capital solutions.
• - Mission Economic Development Agency (MEDA): Developing frameworks for enhanced liquidity through CDFI-originated loans.

As part of OFN's broader vision leading to 2030, the CDFI Innovation Initiative offers an unparalleled opportunity for funders to contribute to new developments in community finance. By aligning with OFN's strategic goals, investors can help create lasting change that benefits communities across the nation.

Call for Collaboration

CDFIs, partners, and investors are encouraged to engage actively in this transformative initiative, which promises to reshape the future of community finance. For those interested in learning more about the CDFI Innovation Initiative or exploring partnerships, OFN offers resources and contact points for participation.

Founded in 1986, OFN remains the leading intermediary for community development investments, managing assets exceeding $1 billion and supporting nearly 500 CDFIs. With a commitment to providing affordable financial products to marginalized communities, OFN continues to play a crucial role in fostering economic development and supporting local entrepreneurs across the United States.