CUCollaborate’s Post

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

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

For CDFI credit unions that had concerns whether their 2023 loans might not meet the new certification standards, the extension from the Community Development Financial Institutions Fund (CDFI Fund) is great news! Now there’s time to make adjustments as needed. So where do you start? Learn more during our July 10 webinar for currently certified CDFI credit unions: https://loom.ly/qKXwPRc #creditunions #CDFIs

We are calling on Congress for immediate action to increase funds in the FY 2025 Budget for the CDFI Fund: https://shorturl.at/nvCL0 🔹 CDBA requests a minimum funding provision of $341 million, with $40 million earmarked for the Bank Enterprise Award (BEA) Program. 🔹 The proposed budget of $325 million underestimates the growing demands of services provided by CDFIs. 🔹 CDFIs leverage each dollar of funding to up to twelve times that amount in private capital, vital for economic growth and closing the wealth gap. 🔹 CDFI banks are crucial in fostering job creation, business growth, affordable housing, and equitable financial services in underserved communities. Why It Matters: 🔹 CDFIs are pivotal in narrowing the wealth gap and providing genuine economic opportunities. 🔹In FY22, CDFI Program awardees reported 1.4M loans or investments totaling more than $53 billion, including financing for over 65k affordable homes & countless dreams. This figure represents just a portion of the CDFI industry's overall impact. Imagine the future we can build with $341M for the CDFI Fund in FY25. 🔹 The BEA program, with $642 million in grants since 1996, is a high-impact mechanism for directing resources to economically challenged communities. How You Can Help: 📝 Contact your representatives and urge them to support increased funding for the CDFI Fund and the BEA Program. 🌐 Spread awareness about the vital role CDFIs play in revitalizing underserved communities. Join us in advocating for robust funding levels to ensure continued support and growth of economic vitality in neglected urban and rural areas.  #CommunityDevelopment #EconomicEmpowerment #CDFIFund #BEAProgram #FinancialInclusion

A BIG day for the Community Development Finance Institution (CDFI) sector yesterday… It was great to be in Liverpool at the Responsible Finance Member day hearing from Theodora Hadjimichael & Reinald de Monchy about two new major funding programmes… British Business Bank launched their Community ENABLE funding programme. Over the first two years this will provide £150m in debt finance to small businesses via CDFIs. In phase two it will source additional further funding from private investors, leveraging the govt-backed funding to increase the amount of wholesale finance available under the programme. JPMorganChase Foundation are also providing £4m grant funding to support CDFIs build their capacity to support more small businesses and establish the essential foundations to accelerate the sectors growth. At the Impact Investing Institute we will continue to work with these partners and others including Department for Culture, Media and Sport and Lloyds Bank to engage other investors in the sector and raise awareness of the incredible impact and potential of CDFIs to support small businesses to thrive. It was also great to hear from Stephen Deakin Sheridan Sulskis Sean Dennis & Emma Lower on what these funding programmes mean for CDFIs.  And good to spend time in between sessions speaking to partners, chatting to CDFI leaders, and hearing from great speakers on a range of themes including referrals, making the most of AI, and the future of the sector. Lots to look forward to (and work to be done!) in 2025 and beyond! #CDFIs #PlaceBasedImpactInvesting #SMEs #LocalImpact #BuildingWaves https://lnkd.in/eZCsaXzy

As we commemorate 30 years of the Community Development Financial Institutions Fund (CDFI Fund), we reflect on the incredible impact it has had on underserved communities across the nation. In our office hangs a signed copy of the Riegle Act—the historic legislation that established the CDFI Fund, authorized in 1994. This copy was gifted to our CEO, Jeannine Jacokes, by Sen. Don Riegle, who was serving as Chairman of the Senate Banking Committee at the time, in recognition of her role as lead Senate staff on the CDFI Fund’s authorizing statute. It stands as a powerful reminder of the vision and leadership that brought the CDFI Fund into existence and the transformative work it has enabled. Since its creation, the CDFI Fund has awarded more than $3.8 billion in grants, loans, and equity investments, helping create jobs, build affordable housing, and promote economic growth. Through this partnership, CDBA and its member banks, which began in 2002, have leveraged these resources to extend critical financial services to communities historically excluded from the financial system. The Fund’s support has enabled mission-driven banks to direct billions of dollars back into disenfranchised communities, creating real and lasting change. As we look to the future, CDBA remains committed to expanding access to capital and empowering underserved communities, ensuring that the next 30 years of the CDFI Fund are as impactful as the first. #CDFIFund #CommunityDevelopment #FinancialInclusion #EconomicOpportunity #Leadership

Want a blueprint for how to deliver impactful financial education that can transform people’s lives? I felt honoured to get a glimpse of exactly that on a recent visit to a MyBnk Money House. Vulnerable young adults come to flats like this one to learn vital skills, from reading their first pay cheque to navigating tenancies and understanding debt. Speaking to one of the graduates of the Money House course about how it changed her life hammered home for me just how important these things are – and how concerning it is that so many young people slip through the net. It’s not just vulnerable young adults who are missing out on a financial education – it’s almost all of them, as patchy provision in schools has left enormous gaps. Super proud to call MyBnk one of our abrdn charity partners. At abrdn, we’ve been vocal on this issue for a while, publishing research into the UK’s concerningly low financial literacy levels and calling for policy reform to address the issue. Thanks to Sarah Moody, Kirsty Brownlie, Leon Ward, Rebekah Young and Jemma Jackson for making the visit happen. #finance #financialeducation #money #saving #investing

Very big news today from the Community Development Financial Institutions Fund (CDFI Fund) – the deadline for re-certification for existing CDFIs has been extended. The new deadlines are based on the applicant’s fiscal year-end, which for most credit unions means the new deadline will be September 30, 2025. And after submission, CDFIs will retain their certified status until notified otherwise, remaining eligible for CDFI Fund award programs. This will be a big help to CDFIs, because this extension gives credit unions time to make strategic lending changes to align with the updated Target Market requirements. That means NOW is the time to be increasing your Target Market lending – and we’re here to help! https://lnkd.in/eg-cF4vS #CDFI #creditunions

The $341 million request in CDFI funding is modest relative to the size and scope of the CDFI industry - Today, CDFI banks alone have a portfolio of approximately $81 billion in loans outstanding - but it's a start. Most CDFI banks’ small business loans go to mom-and-pop businesses on Main Street. CDFI banks enable hardworking families to become homeowners. They finance affordable rental housing. CDFIs also enable growing charter schools to build facilities, support expansion of community health centers, and finance other economy boosting projects. The CDFI Fund is one of the Federal government’s best market-based strategies for leveraging private dollars to restore economic vitality - we strongly urge Congress to continue its bipartisan support of the CDFI Fund. 

THE AFFORDABLE HOUSING INDUSTRIAL COMPLEX IS BROKEN AND NOT WORKING FOR AMERICAN TAXPAYERS Veteran Housing Corp would ask every TAXPAYER to demand and get answers from their elected and appointed government officials the below questions as they relate to any affordable, workforce, or supportive housing project in your community! 1. How much local, state, and federal funding, tax credits, or other government benefits or incentives did the project receive? 2. What is the affordability period for each project? Is the affordability period permanent and in perpetuity? 3. What guarantees exist have your local, state, and federal government officials obtained in writing that rents will not go up or that tenants will not be displaced or evicted after the "affordability period expires? Every local, state, and federal housing authority and affordable or workforce housing stakeholder should adopt the State of Vermont's "permanent affordability" policy as a model for all future government funded or subsidized housing projects or developments, no exceptions! https://lnkd.in/eFEUC8c8 Additionally, local, state and federal housing agencies should look to the Helsinki, FINLAND MODEL of ending homelessness by providing affordable housing for all 'It’s a miracle': Helsinki's radical solution to homelessness https://lnkd.in/er9HZSQU Even the U.S. Department of Housing and Urban Development AGREES THAT adopting FINLAND'S MODEL OF ERADICATING HOMELESSNESS may be of great value to resolving the affordable housing and homelessness crises in America https://lnkd.in/gkSZWYRU