Venture Capital: OppZo, Which Funds Small Businesses Having Government Contracts, Raises $260M

July 1, 2022 | News, Venture Capital

The funding comprised $5 million of equity and $255 million of debt.

Fintech OppZo brings together investors and small businesses that need working capital loans for their government-facing businesses. Typically located in economically stressed areas of the country, these businesses represent an opportunity for investors to also earn a tax benefit by investing in such Opportunity Zones. OppZo raised $260 million in a round led by Arcadia Funds. (CISION PR Newswire)

New asset class

Samll businesses with government contracts can raise working capital loans through OppZo’s AI-enabled origination and servicing platform.

“OppZo is assisting in the revitalization of distressed communities across the United States by offering a new transformative impact asset class to institutional investors,” OppZo said in a statement. “OppZo’s platform provides institutional investors with the opportunity to gain an attractive risk-adjusted return that has a positive and sustainable social and economic impact on the funded communities.”

Oppzo will use the new funds to further expand its lending sources for small businesses.

“Every business owner needs access to capital on terms that are fair and affordable,” said Warren Reed, Co-Founder & CEO. “We understand first hand the impacts of disparity in funding, and we’re delivering the optimal solution to the market.”

Randy Garrett, Co-Founder & President, OppZo, said: “We are building an ecosystem that drives both public and private capital to businesses in these distressed communities, and we do so by focusing on building relationships and understanding first.”

Related Story: Brex Dumps Thousands Of Small Business Customers In Rejig

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