Eligibility & Selection Criteria

Applicants for the NEXT Seed Capital Award must meet certain eligibility requirements. These, as well as selection criteria, are included in detail in the 2012 NEXT Application Guidelines. Below is a summary.

General Note

• CDFIs do not need to be a Member of OFN to apply for the NEXT Awards.
• CDFIs cannot apply for both the NEXT Seed Capital Award and the NEXT Opportunity Award in the same year as they require different stages of development for an applicant’s expansion strategy.
• The 10 CDFIs that won a large NEXT Award in 2007–2011 may not apply for the Wells Fargo NEXT Awards in 2012–2017.
• CDFIs that are awarded the NEXT Seed Capital Award in one year may apply in future years for the NEXT Opportunity Award, but CDFIs that are awarded the NEXT Opportunity Award may not apply in future years for the NEXT Awards.

2012 Eligibility Requirements

1. Charitable Purpose

   Applicant is a US tax-exempt organization with a current 501(c)(3) determination letter from the Internal Revenue Service. Organizations without this tax status may be eligible if it is a U.S. Treasury CDFI Fund certified CDFI. Native CDFIs that are CDFI Fund certified must not be tribally controlled.

2. Community Development Mission & Impact

   Applicant has a primary mission of community development and strives to have a positive impact on low-income, low-wealth, and other disadvantaged people and communities.

3. Finance-based Strategy

   Applicant is a private non-governmental financial intermediary that uses financing as an integral part of its community development strategy.

4. Discipline and Performance

   Applicant is currently in compliance with all financial covenants, reporting requirements, and performance obligations stipulated by public, private, and philanthropic providers of capital and grant support.

5. OFN’s Goals

   Applicant affirms Opportunity Finance Network’s goal to ensure that low-income, low-wealth and other disadvantaged people and communities have access to affordable, responsible financial products and services.

2012 Selection Criteria

1. Rationale for Entering New Geography or Offering New Product

   A description and analysis of the unmet market need that applicant plans to address with geographic and/or product coverage strategy, or a plan to obtain the market data needed to address this issue.

2. Coverage Strategy

   A compelling strategy to expand geographic market and/or product coverage. The expansion strategy must have financing as a primary component, and should be on track to implement within twelve to eighteen months of receiving an award.

3. Use of Funds

   A compelling use of funds that demonstrates how the NEXT Seed Capital Award will be used to advance the applicant’s plan to expand coverage in ways that otherwise would not be possible.

4. Impact

   A solid track record of tracking impact over the organization’s history and an articulation of how the applicant plans to develop projections for outcomes/impact of applicant’s proposed coverage strategy.

5. Readiness

   A clear articulation of any resources (i.e. staff; financial; partners; capital) the applicant anticipates needing to develop its plan for expanded coverage.

6. Financial Strength and Performance

   Acceptable financial performance and risk management, dedicated staff, and a sound business model that positions the organization for sustained growth, innovation, and success.