OppZo, a mission-driven financial technology company focused on unlocking access to capital for small and medium-sized businesses, received more than $260 million in debt and equity funding. The equity portion of the funding, worth $5 million, was led by Arcadia Funds. The debt portion of the funding, worth $255 million, was led by Arcadia Funds.

Leveraging OppZo’s proprietary AI-driven origination and servicing platform, SMBs focused on government contracting can access working capital in a cost-effective and operationally efficient way. 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’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.

“We built OppZo with one mission in mind: to help build thriving communities,” Warren Reed, co-founder and CEO, OppZo, said. “Every business owner needs access to capital on terms that are fair and affordable. We understand firsthand the impacts of disparity in funding, and we’re delivering the optimal solution to the market.”

“Our top priority is supporting the communities we serve and seeing them thrive, ” Randy Garrett, co-founder and 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.”

The funding from Arcadia Funds will enable OppZo to continue connecting small businesses to public and private capital sources, so they can grow their business, ultimately creating jobs.

“OppZo is solving the conundrum the financial services industry has long faced: how do we pursue impact without sacrificing a sustainable business model?” Andrew Hallowell, managing director at Arcadia Funds, said. “Arcadia Funds is proud to welcome OppZo to our portfolio and help achieve its mission of providing access to capital while helping to build a new era of wealth generation for small businesses and distressed communities.”