Dealflow | May 20, 2020

Olamina Fund deploys first $14.5 million to Black, Native and rural lenders

Amy Cortese
ImpactAlpha Editor

Amy Cortese

ImpactAlpha, May 20 – The $40 million Olamina Fund fund was launched by Candide Group in November to address a persistent lack of capital in low-income communities as well as the few financial institutions that serve them.

In its first six months, it has made low-interest loans to five lenders, including Oweesta, a community development financial institution, or CDFI, serving Native populations and UP Community Fund, a Black-led organization that lends to entrepreneurs of color in the southeast. 

The COVID pandemic has only underscored Olamina’s mission. It was part of a group of family offices that rushed capital to CDFIs Hope Credit Union and Rural Community Assistance Corporation in April to expand their capacity to offer loans via the federal Paycheck Protection Program. 

With zero-interest loans and deposits, wealthy families rush capital to rural lenders and impoverished communities


The Olamina Fund also extended a six-month interest payment deferment option for all of its borrowers, allowing them to be flexible, in turn, with their own borrowers. 

Investors that demonstrate flexibility and patience prove catalytic in COVID crisis