Opportunity Fund Review for 2021

Overview

Opportunity Fund is a nonprofit microlender that offers affordable access to small business loans—with a particular focus on underserved entrepreneurs—including low- and moderate-income immigrants, people of color, and women.

Although primarily a California-based lender, Opportunity Fund works with lending partners to expand their reach across the U.S. As an example, any prospective borrower that submits a business loan inquiry on the Lending Club website is connected to Opportunity Fund (as Lending Club no longer originates business loans).

That said, with funding available in five to seven days, these medium-term loans are a slightly faster (yet still affordable) alternative for business owners who might not qualify for bank or SBA loans.

Pros and Cons

Green checkmarkPros
  • Streamlined application and funding process
  • More affordable than many alternative lenders
  • Fixed monthly payment schedule, medium-term lengths
  • No down payment and no prepayment penalties
  • Easier to qualify for than bank or SBA loans
  • Opportunity to build and improve personal and business credit
Red X markCons
  • 5.99% origination fee on all loans
  • Not as fast to fund as most alternative lenders
  • Limited based on state and industry
  • Not available for startups

Opportunity Fund Small Business Loans

Opportunity Fund offers medium-term loans that can be used for a variety of purposes, including—working capital, equipment purchases, vehicle purchases, debt refinancing, opening a new business location, purchasing another business, and more.

Opportunity Fund Business Loan Details

  • Loan amount

    $2,600 to $250,000

  • Terms

    One to five years

  • Interest rates

    4.99% to 24.90%; APR ranges from 12.15% to 29.97%

Opportunity Fund Business Loan Requirements

  • Time in business

    12+ months

  • Annual revenue

    $50,000+

  • Credit score

    No stated minimum

Opportunity Fund Borrower Eligibility

Before you decide to apply for a business loan from Opportunity Fund, it’s important to note that there are certain eligibility criteria you’ll need to meet in order to qualify. Here’s what you’ll want to keep in mind:

Restricted Industries

Opportunity Fund does not work with businesses in the following industries:

  • Bars and liquor stores
  • Cigarette, tobacco, marijuana retailers, or smoke shops
  • Real estate development or brokers
  • General contractors and subcontractors
  • Gas stations
  • Car dealerships and rideshare cars
  • Gambling
  • Adult entertainment
  • Firearms
  • Lending and other finance and trading companies
  • Nonprofits, religious institutions, and political organizations

Financial History

  • Business cannot have recent bankruptcies (within the last two years)
  • Must have a business bank account, except sole proprietorships which may operate out of a personal bank account

Location

Opportunity Fund business loans are not available to businesses located in:

  • Montana
  • North Dakota
  • South Dakota
  • Tennessee
  • Vermont
  • Washington D.C.

As you’ll see here, Opportunity Fund has very specific state-by-state lending guidelines. If your business is located in California, you can apply in-person, over the phone, or online for a loan.

If your business is located in any of the states not listed above, on the other hand, you can apply for an Opportunity Fund small business loan online or over the phone through Opportunity Fund’s partnership with Lending Club.

What You Need to Apply

  • General information about your business (email address, how much money you’re looking to borrow, why you need the funds)
  • Personal information about the business owner applying (applicant must own at least 20% of the business)
  • Three months of business bank statements (or personal bank statements if sole proprietor)
  • Your most recent personal and business tax return
  • Existing business debt information (if applicable)

How to Get a Business Loan With Opportunity Fund

If you’re interested in a business loan from Opportunity Fund, there are a few ways you can start the application process. As we mentioned above, the best method to begin your application will largely depend on where your business is located.

That said, if you’re not sure where to start, you can always call one of the Opportunity Fund loan consultants at 866-299-8173. They’ll be able to recommend the most suitable course of action and walk you through the business loan application process.

It’s very likely, however, that it will be easiest for most business owners to apply online through the Lending Club platform—as this is available in the majority of states. 

Let’s break down what that process looks like.

Application and Underwriting Process

As we’ve mentioned, although Lending Club no longer originates business loans, Opportunity Fund uses their online platform to serve their small business customers and facilitate their application and underwriting process.

Therefore, you can start your Opportunity Fund application by clicking “Get a Quote” and entering your desired loan amount, email address, and loan purpose on the business loans section of the Lending Club website

After you’ve submitted your information, Opportunity Fund will pull a soft credit inquiry—which will not impact your credit score. Then, if Opportunity Fund thinks you’re a candidate for a loan, you’ll receive a quote and be able to review multiple monthly payment and interest rate options.

Next, you’ll be paired with a dedicated Opportunity Fund Client Advisor who will be available to answer any questions you have and will help you with submitting any required documents as you continue through the next steps in the process. You’ll choose the quote that best fits your business needs and submit a complete application.

At this point, Opportunity Fund may conduct a hard pull of your credit report as part of the last stages of their underwriting process. Then, hopefully you’ll receive a final loan offer from Opportunity Fund.

Funding Process

Although Opportunity Fund uses Lending Club’s platform to facilitate their processes, their timeline is generally slower compared to other online lenders in the industry. Generally, it takes three to five business days for Opportunity Fund to notify you with an offer after you’ve submitted a completed application and all required documentation.

That said, once you’ve received your loan offer, you’ll be able to review your loan amount, rates, terms, and additional details. As you do so, it’s important to note that:

  • A personal guarantee is required for at least one owner who owns 20% or more of the business
  • Opportunity Fund will file a UCC-1 blanket lien for loans greater than $50,000
  • All loans will have an origination fee of 5.99%

If you sign the loan agreement, you’ll be able to access your funds in as little as two to five business days from the time your loan was approved. Your loan can be funded either by check to your business or by electronic deposit to your business bank account.

Repayment Process

Once you’ve received your financing from Opportunity Fund, you’ll start repaying on a monthly basis. Opportunity Fund’s fixed-rate installation loans are fully amortizing and do not have prepayment penalties—so you can save money on interest by paying them off early.

You’ll have a few options for repayment—you can set up automatic payments, create and use a PayNearMe account, or pay by mail.

Finally, it’s important to mention that Opportunity Fund reports payment history on their small business loans to both the consumer and business credit bureaus—and therefore, you can build your business credit and personal credit scores by paying back your loan on time.

Opportunity Fund Customer Service

Opportunity Fund has various customer service departments devoted to different aspects of their business. For small business lending assistance, you can call 866-299-8173 or email loans@opportunityfund.org.

To reach their general customer service, on the other hand, you can call 408-297-0204 or email info@opportunityfund.org. Opportunity Fund customer service representatives are available from Monday through Friday, 8:00 a.m. to 5:00 p.m. PT.

Additionally, if you’re working through the application process and are trying to reach out to an Opportunity Fund Client Advisor, you can do so by calling—877-525-1555—Monday through Friday from 6:30 a.m to 5:00 p.m. PT.

Opportunity Fund Customer Reviews

What do previous customers have to say about their experience with Opportunity Fund? 

In general, although there is not an abundance of Opportunity Fund reviews available online, positive reviews tend to focus on the professionalism and helpfulness of the Opportunity Fund team, as well as the affordable rates and terms of their loans.

More negative reviews, on the other hand, seem to come from borrowers whose loan applications were denied or who were initially qualified and then received a denial after submitting additional documentation.

With that in mind, Opportunity Fund is not a BBB-accredited business and currently has a B- rating on their site. They don’t have any BBB reviews and only have one active complaint about phone calls regarding an ex-employee.

It’s worth noting, however, that Opportunity Fund is a nonprofit organization—which is why it might not be listed on common consumer review sites. That said, as an organization, Opportunity Fund does have a four-star rating (90.06 out of 100) from Charity Navigator, a company that evaluates the transparency, accountability, and financial health of nonprofits.

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Is Opportunity Fund in Fundera's Network?

Opportunity Fund is in Fundera’s Lender Network. The Fundera team has carefully vetted Opportunity Fund and determined that their offering is one of the best in their product category. When working with Opportunity Fund, you can be sure you’re getting transparent, fair pricing on a best-in-class product.

Randa Kriss
Senior Staff Writer at Fundera

Randa Kriss

Randa Kriss is a senior staff writer at Fundera.

At Fundera, Randa specializes in reviewing small business products, software, and services. Randa has written hundreds of reviews across a wide swath of business topics including ecommerce, merchant services, accounting, credit cards, bank accounts, loan products, and payroll and human resources solutions. 

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