Microloans
Oppportunity Fund lends to local small businesses that often do not qualify for a bank loan. When we lend a hand and help them to grow, the results are impressive: businesses succeed and our entire regional economy improves. Since 1995, Opportunity Fund has lent over $19.5 million to more than 1,700 California small business owners.
When a small business owner takes out a loan, what happens?
Incomes rise
- Opportunity Fund small businesses report a 30% increase in business income after receiving a loan
Jobs are created
- 50% increase in the number of employees per business.
- Each loan sustains or creates 2.4 jobs on average.
Businesses succeed
- Opportunity Fund small business borrowers have an 90% survival rate.
Entrepreneurs gain confidence
- 95% of Opportunity Fund's borrowers report an increased ability to manage their business as a result of working with our program.
When Opportunity Fund invests over $19.5 million
in local small businesses, what happens?
Economic vitality
Each Opportunity Fund loan has a 2:1 return on investment. Every $1 we lend to local small businesses spurs an additional $2 in economic activity at the local level from new wages, to new taxes, to new spending.
Ripple effect
Opportunity Fund lending to Bay Area small businesses generates millions of dollars in additional economic activity in the region. Our current lending portfolio spurs an additional $22 million worth of economic activity each year- beyond the capital we invest directly in our small businesses.
How do we know?
Each year, Opportunity Fund evaluates our program using MicroTest, a performance and outcome management tool developed by FIELD, a project of the Aspen Institute. In 2010, our response rate was 52%. The above information is based on our findings.
To learn more about our evaluation work with MicroTest, click here.
In addition, Opportunity Fund comissioned TXP, Inc. -an independent research firm - to conduct an economic analysis of our microlending portfolio on the regional economy over the past 15 years. Ripple Effect is the report that shares their findings about our work.
To read the full report, visit the Publications section of our website.
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Social Impact Highlights:
Microlending
This 'Ripple Effect' study calculates the “ripple effect” (or, macroeconomic impact) of Opportunity Fund’s lending on the Bay Area economy.
Key Findings
+ 2:1 Return
For every $1 lent to a Bay Area small business, it generates a further $2 in economic activity in our regional economy, spurring new wages, new taxes, and new spending.
+$22 million generated annually
Opportunity Fund's microlending generates $22,186,927 in total annual economic activity in the Bay Area.
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