Opportunity Fund, a provider of microloans and microsavings in San Francisco, California, recently launched a “GreenforGreen” loan with the assistance of a USD 3 million grant from US-based financial services company JPMorgan Chase. The loans are intended to assist low-income entrepreneurs in making their businesses more environmentally friendly.
Omar Alireza, Director of Small Business Lending at Opportunity Fund, said some San Francisco Bay Area businesses “want to go green, but can’t afford the cost. And in some cases, they have to go green in order to comply with environmental regulations.” Businesses can apply for loans ranging from USD 500 to USD 100,000 at 8 percent interest per year.
Microentrepreneurs that borrow from Opportunity typically have one to five employees and take an average loan of USD 7,000. Opportunity’s Chief Executive Officer, Eric Weaver, said “business owners see a 30 percent increase in profits and keep or add 2.4 jobs, on average, with each loan we make [1].”
By John Howard-Smith, Research Associate
About Opportunity Fund: Opportunity Fund is a provider of microloans and microsavings that is based in the US state of California. Opportunity Fund’s mission is to improve the economic status of low-income individuals by providing them with the tools to earn, save and invest. The organization primarily serves people in the San Francisco Bay area by offering them access to loans to finance affordable homes, financial education, savings plans and incentives, loans to finance community facilities such as healthcare clinics and schools and microloans. As of 2010, Opportunity Fund reports total assets of USD 45 million.
[1] Opportunity Fund Press Release: “Opportunity Fund Launches New Green Loans to Create Sustainable Small Businesses in Bay Area”, http://www.opportunityfund.org/news/press-release
MicroCapital’s Microfinance Universe profile: Opportunity Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+Fund
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