More than 45% of families in LA County live below the self-sufficiency standard. In LA, it takes more than three full-time, minimum wage jobs for a typical family to pay for necessities. To bridge the income gap, many–in particular minorities and immigrants–turn to entrepreneurship as a path to economic security, a strategy that also stimulates job creation in their communities.

A 2012 CNN report noted, “[Small and medium enterprises] in the U.S. create over 85% of all jobs." If one in three microenterprises hired an additional person, the U.S. would return to full employment. Yet 50% of small businesses fail, often due to an inability to access affordable and responsible capital needed for growth because of language and cultural barriers, limited assets, and poor/insufficient credit.

Opportunity Fund's small business program is an investment in address this daunting economic indicator and reaching all small business owners to provide them with sound capital with which to build their enterprises.

Opportunity Fund is California's largest nonprofit microlender. Our innovative microlending model enables Los Angeles' underserved small business owners access so they can build vibrant enterprises, and a brighter future for themselves, their families and their communities. We provide loans from $2,600 to $250,000, at affordable, fixed interest rates to disadvantaged entrepreneurs. Our model balances technology, efficiency, market knowledge, and impact measurement to remove barriers to credit that many of our borrowers face when declined by banks.

We use a variety of innovative marketing strategies to reach small business owners including our street team of loan officers, bank referrals, online presence, and a first-of-its kind partnership with Lending Club, the nation's largest online lender. Last year, we launched our Community Partners Program in LA to provide multiple layers of microenterprise assistance, leverage each other's strengths and have a deeper reach.

Through Opportunity Fund's Community Partners Program, we've worked closely with community organizations like MCS BusinessSource Center which shares Opportunity Fund's core value of helping small business owners gain access to responsible and transparent lending. By working with MCS BusinessSource Center, Opportunity Fund has created a consistent referral channel for microbusiness, thereby generating new loan volume.

Through our ten LA community partners, including two signed in 2017, we have originated 32 loans for a loan volume of $353,751, creating/sustaining nearly 100 new jobs, and generating nearly $690,000 in new economic activity through new wages, spending and taxes. Building the framework to support our partners—such as product training, collateral marketing material, processes and communication channels, designing and writing a monthly partner-directed newsletter, and developing “how to" sessions with partners offered to small business clients—has demanded more time than originally anticipated. Going forward, with a strong system in place for our existing partners, Opportunity Fund's staff is anticipating being able to dedicate more time to adding more partners to the program, and originating new lending through that channel that creates stronger small businesses, economic mobility for our clients and their families, and employees.