CU Strategic Planning’s Post

A Message from CDFI Fund Director Pravina Raghavan: Finishing 2024 Strong and Looking Ahead As 2024 draws to a close, Pravina Raghavan, Director of the Community Development Financial Institutions Fund (CDFI Fund), reflects on the year’s achievements and shares exciting plans for 2025.  The CDFI Fund has been hard at work advancing economic opportunity, with nearly $700 million in awards distributed across key programs like the Bank Enterprise Award (BEA) Program, CDFI Program, Native American CDFI Assistance (NACA) Program, and the Capital Magnet Fund. Additional milestones include:  - $5 billion in New Markets Tax Credits (NMTCs) allocated under the 2023 round.   - A record-breaking $498 million in guarantees under the Bond Guarantee Program for FY 2024.   - Updated tools and guidance to help CDFIs navigate the new certification process, with an early submission period open now through January 6, 2025.  Looking to the future, Director Raghavan shared plans for transformative initiatives, including:  - A new affordable housing program announced by Treasury Secretary Janet Yellen, designed to increase housing supply.   - A pilot grant program to support CDFIs in modernizing their technology infrastructure.   - A collaboration with the FHFA to expand access to Federal Home Loan Bank capital for CDFIs.  Other key highlights:  - BEA Program: $40.1M awarded to 171 institutions in FY 2024, with the FY 2025 round expected next fall.   - Capital Magnet Fund: $246M awarded to 48 organizations; next round opens spring 2025.   - NMTC Program: $10B in allocations planned for CYs 2024 and 2025.   - CDFI Bond Guarantee Program: Record $498M in FY 2024 guarantees issued.  This year also marked a special milestone—the 30th anniversary of the Riegle Act, which created the CDFI Fund. During the September Community Development Advisory Board meeting, Treasury Secretary Yellen reflected on three decades of impactful work, setting the stage for even greater progress.  #CDFIFund #Leadership #CommunityDevelopment #EconomicOpportunity #AffordableHousing #CDFI

🏛️ Big news from the CDFI Fund for 2025! The CDFI Fund recently announced key changes to its certification and grant programs for 2025, laying the groundwork for a more streamlined, impactful approach to advancing economic equity. Our latest blog breaks down everything credit unions need to know, including: ✔️ Updates to the CDFI certification process ✔️ Grant opportunities for 2025 and beyond ✔️ How credit unions can prepare to align with these changes Whether you're working toward certification or planning your next round of funding applications, now is the time to act. 🔗 Read the full blog here: https://lnkd.in/gFqzYjc4 What are your thoughts on the CDFI Fund's new direction? #CDFI #CreditUnions #CommunityDevelopment

Who knows what a CDFI is and what they do? Admittedly, I had no clue until 2020. A CDFI or Community Development Financial Institutions provide access to financial products and services for local residents and businesses. Specifically focused on low-income communities and individuals that typically have minimal to no access to affordable credit, investment capital, or financial services.   CDFIs are made up of over a thousand private and public sector investors that support their communities. CDFIs come in 4 types: 1) Community development loan fund; 2) Community development venture capital funds; 3) CD banks; 4) CD credit unions. These institutions invest a combination of federal and private sector capital in economically disadvantaged communities. While mainstream financial institutions see risk in these areas, a CDFI sees an opportunity and a chance to rid businesses of predatory credit.   The access to fair and reasonable credit is not the only advantage. Business owners benefit from a closer lending relationship that results in lower charge offs in CDFIs. The CDFIs also engage with the communities to strengthen credit, educate, and drive business growth.   Where do CDFIs exist? Excellent question ... I recently received a link to the CDFI Market Map. You can view where CDFIs exist and more importantly, "CDFI Deserts" where the needs are not being met. Check it out to see how your area looks, maybe how you could help support the CDFI mission, or point a business in their direction. #capitisadvisors #fractionalCFO #CFO #smallbusinesses #finance #budgetyourbusinesspodcast

Thanks to U.S. Department of the Treasury and Community Development Financial Institutions Fund (CDFI Fund) for hosting us on Monday to discuss the Access program and how states can leverage SSBCI funding to support our country's smallest small businesses. It was a great discussion with TruFund Financial Services’ James H. Bason, Goldman Sachs’ Sherry Wang, CDFI Fund’s Pravina Raghavan, and New Jersey Economic Development Authority (NJEDA)’s Christina Fuentes. As our CEO Jennifer Pryce shared: "It's kind of a program in a box. We've tried to make it as easy as possible for states to come in and hit go right away."  "We have four states with us right now and there is no limit to how many states we can have. This just scales and grows beautifully." Jenn also gave a shout out to our supporters, Citi Foundation and Wells Fargo Foundation: "I want to call out some critical support that came from Citi Foundation and Wells Fargo Foundation. It's unusual that you get grant money to just figure it out and they gave us that type of capital... So, we're really grateful for that moment in time because it let us all as developers of this program work together to get to where we are today." If you are looking to get a state-based program up and running, learn more about Access here and reach out to chat! https://bit.ly/483PWh8 #ImpactInvesting #SmallBusiness

Today marks the 30th anniversary of the #CDFI Fund, established through the bipartisan Riegle Community Development Act in 1994. This Fund has been instrumental in providing over $7 billion to Community Development Financial Institutions (CDFIs), supporting small businesses, affordable housing, and community development projects nationwide. With more than 1,400 certified CDFIs, these mission-driven institutions have invested over $216 billion since 2015, creating or retaining 5.3 million American jobs. Strategically placed in underserved areas, CDFIs focus on fostering economic development and job creation in communities often overlooked by traditional financial institutions. Key facts about CDFIs: ✅ Mission-driven to support underserved communities and foster economic development. ✅ Certified by the U.S. Department of the Treasury, enabling access to resources for their mission. ✅ Diverse institutions including banks, credit unions, and venture capital funds, each catering to different financial needs. ✅ Catalyst for change, leveraging over $100 billion in private sector investments since 1994. ✅ Support small businesses, especially minority- and women-owned enterprises, through microloans. ✅ Impact-focused on social and environmental outcomes like affordable housing and job creation in underfunded communities. These facts highlight the significant role CDFIs play in promoting economic inclusion and driving positive change in communities nationwide. #EconomicInclusion #CommunityDevelopment #CDFIs Asset Strategy

Sitting from a fundraising seat at a Community Development Financial Institution (CDFI), I am inspired by our industry’s knack for resilience, but equally curious (read: concerned) about how the current economic climate may impact our ability to support our communities' most pressing economic needs. Rising interest rates pressure our ability to lend affordably. Tightening risk measures from traditional lenders limits our capital supply. Inflation? Economic instability? Operational costs? Uncertain grant funding? Risk of over-leveraging? The pressure is mounting. But here's the thing about CDFIs - we pivot under pressure. We innovate. Collaborate. We leverage dollars for financial impact to far exceed any initial investment. So, here's my call to action: INVEST in your local CDFIs. We'll find ways to drive your dollars into community to support small business owners, affordable housing developers, health care centers, commercial real estate, clean climate, and schools ALL. OVER. THE. UNITED. STATES. You can find a CDFI of interest to you here: https://lnkd.in/gVgw2q4M #communitydevelopmentfinance #CDFI #fundraising #invest

The Mission Driven Bank Fund (MDBF) announced its second close of $65 million, bringing the total capital raised to over $177 million. The fund aims to support FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs) in closing the racial wealth gap. 'The Fund welcomed new limited partners, including banks with assets ranging from $6 billion to over $150 billion,' said Paul Welch, the MDBF portfolio manager. 'We are pleased with progress toward achieving the Fund's objectives and are encouraged by the robust investment pipeline.' John M. Hairston, president and CEO of Hancock Whitney Bank, a limited partner, said, 'We believe investing in the MDBF aligns with our mission, purpose, and core values and supports working together to help people and businesses grow and protect their financial futures.' Rickey Jimenez, director of community reinvestment with Enterprise Bank & Trust, another limited partner, stated, 'We are proud to be an investor in such an innovative fund.' The Fund will continue to engage with mission-aligned banks to create customized solutions and build capacity to serve their communities. Additional closings are planned through May 2025. #impactinvesting #missiondriven #racialwealthgap @missiondrivenbankfund @enterprisebank @hancockwhitney @bannerbank @lakecitybank

#CDFIs offer flexible financing options and personalized support in historically underserved communities. The Federal Reserve Bank of San Francisco observed that offering diverse financial products, leveraging a range of capital sources, and providing more personalized borrower assistance means that CDFIs can create accessible financing solutions that meet community needs. Some CDFIs also bridge gaps where traditional financial institutions fall short by offering longer repayment terms, alternate creditworthiness metrics or evaluations, and loan structures tailored to borrowers with restrictions related to their religion or immigrant status. This research brief from the San Francisco Fed is a great overview of CDFIs: https://lnkd.in/eSaD5__E

It is important to understand that "profit back to members" means that when things go wrong, and a superfund is penalised, these penalties need to be funded by members, so if you are choosing an industry superfund, you will need to ensure it has good governance - it is run well. And we need to see greater clarity around their unlisted assets that have contributed to their performance, where performance has not been marked to market.

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