DreamFund

Solutions for Mission-Focused Lending to Main Street 

 

DreamFund addresses the gap between demand for and supply of capital in underserved communities by giving CDFIs access to additional products from third parties and serving as a liquidity solution for cash-constrained CDFIs. Through DreamFund, business owners who would not have otherwise qualified for loans are able to borrow at below-market rates through a CDFI. 

DreamFund creates value for CDFIs and investors through:

  • Community impact: DreamFund enables lending to creditworthy small businesses in low-wealth communities. Absent DreamFund, these borrowers would typically be unable to access capital. 
  • Industry transformation: The DreamFund model represents a critical step change, enabling product innovation, operating efficiencies and balance sheet efficiencies that are essential if CDFIs are to become financially sustainable and achieve meaningful scale.
  • Transparency and risk minimization: DreamFund was structured by Kirkland & Ellis (working pro bono) to efficiently channel capital into qualifying loans, without exposing funders to other risks.

CDFIs interested in learning more about how DreamFund can help expand their impact by saying “Yes!” to more small businesses, getting balance sheet relief and providing risk management solutions can email team@tiltforward.com to speak with a member of the team.

Opportunities for Investors 

DreamFund, a nonprofit intermediary, serves as an efficient and effective investment vehicle for CRA and mission-motivated capital. DreamFund presents funders with a structure that limits investor risk (and diligence) to the prospective performance of the loan products that a funder supports. 

Its sole activities are to fund or purchase qualifying loans, pay referral fees and third-party subsidies to participants, receive principal and interest from loans it funds, and disburse those monies to its capital funders. Funders are able to target specific geographies, mission-focused lenders and/or business owner characteristics (e.g. women, veterans).

Are you an investor looking for high-impact opportunities to lend to small businesses in low-wealth communities? Email team@tiltforward.com to speak with a member of the team.