Impact Fund

Partnering Locally to Make a Difference

About the Impact Fund

The Initiative Foundation, a certified Community Development Financial Institution (CDFI) since 1997, launched the Impact Fund in 2023 to enhance its lending and support services. As the only CDFI serving Central Minnesota small businesses, the Initiative Foundation helps owners and entrepreneurs who face barriers to traditional financing.

Through the Impact Fund, a subsidiary organization, the Initiative Foundation can offer more flexible lending than conventional banks, backed by support from the U.S. Department of Treasury. Rather than competing with banks, it complements their efforts by assisting emerging businesses in gaining stability before transitioning to traditional financing.

Friendly, Flexible Capital

Help for Central Minnesota Entrepreneurs

The Impact Fund provides access to capital, flexible lending criteria, and technical assistance to improve financial literacy and business management skills. It also targets investments in projects that drive economic and social impact and collaborates with community partners on development initiatives.

By focusing on low-income and diverse communities, the Foundation and its Impact Fund aim to deploy more lending capital and support entrepreneurship. It also provides business training and guidance to help borrowers become bankable. A board of community members oversees the Impact Fund, ensuring its mission aligns with regional economic growth and empowerment.

Member: Minnesota CDFI Coalition

The Minnesota CDFI Coalition supports the work of CDFIs with connections, learning, and collective advocacy to advance shared goals. The coalition works to build peer network and learning; support CDFIs in building their capacity and leadership; elevate the visibility and impact of Minnesota CDFIs; and advocate for state policies and funding to benefit CDFIs and aggregate resources to expand CDFI lending. The coalition includes the 33 federally certified CDFIs in Minnesota.

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Member: Opportunity Finance Network

The Opportunity Finance Network (OFN) is a leading national network of more than 470 community development financial institutions (CDFIs) nationwide. The network of community development loan funds, banks, venture capital funds, and credit unions works to ensure communities underserved by mainstream finance have access to affordable, responsible financial products and services.

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Trust and Transparency

Find us on Candid

The Impact Fund is a subsidiary of the Initiative Foundation with its own board of directors to guide decision-making. See our profile on Candid (formerly known as Guidestar) for an exploration of the organization’s commitment to supporting small-business clients through friendly, flexible capital and business coaching to help clients with sales tax reporting, financial record-keeping and marketing.

View Our Profile