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
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Everyone deserves access to the capital they need to build their dreams. Sadly, traditional banks often say no where it matters most. Here’s how CDFIs are changing the game: We provide underserved communities with patient capital, affordable rates, and life-changing opportunities—helping businesses grow, neighborhoods thrive, and futures transform. Here’s how the model works and why it’s so powerful: 1. Fill the Gaps Where Banks Won’t Traditional banks prioritize risk avoidance and profit maximization. CDFIs? We step in with lower interest rates and flexible terms—as highlighted by True Pundit’s article for example, by financing over 76,000 affordable housing units and 126,000 small businesses in 2023 alone. 2. Invest for Impact, Not Just Returns CDFIs balance financial success with social good. We often accept smaller returns to ensure long-term community benefits like job creation, stabilized neighborhoods, and improved local economies. 3. Stick With You for the Long Haul CDFIs don’t just lend—we partner. We offer technical assistance, mentorship, and support until clients are ready for traditional banking or equity financing. 4. Transform Communities One Investment at a Time Every loan has ripple effects: Families access affordable housing. Entrepreneurs start thriving businesses. Communities experience renewed stability and opportunity. Want to see the full picture of how CDFIs are building a better future? Get the full story from TriplePundit's interview with NJCC President and CEO Bernel Hall here: https://lnkd.in/ecmRjt8A #AffordableHousing #SmallBusinessSupport #CDFIs #EconomicGrowth #SocialImpact
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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
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Curious about CDFI lenders and their role in commercial real estate? Do you know what a CDFI is? Up until recently I'll admit I didn't either, so don't sweat it 😉 Sometimes in a difficult economy you have to be creative and there is no shortage of that in the commercial real estate world, and that's where CDFI's come in. Let's dive in! 🏢💼 What is a CDFI Lender? Community Development Financial Institutions (CDFIs) are specialized lenders that provide financial services to underserved markets. They focus on promoting economic growth in communities that might otherwise struggle to secure traditional financing. They are also certified by the US Dept. of the Treasury. Why Are They Important? ✅ Inclusive Financing: CDFIs offer loans to businesses and projects that might be overlooked by conventional banks, ensuring that all communities have access to capital. ✅ Economic Development: By funding commercial real estate projects in underserved areas, CDFIs help stimulate local economies, create jobs, and revitalize neighborhoods. ✅ Flexibility and Support: CDFIs can often provide more flexible terms and additional support services, such as business development resources, to help ensure project success. I've recently had the opportunity to consult on a project working directly with a fantastic CDFI group called Craft3. It's been wildly educational and neat to watch multiple groups come together with the ultimate goal of supporting and funding a non-profit pre-school project in Portland. With a lot of economic uncertainty and shifting commercial real estate dynamics, CDFIs truly play a crucial role in bridging the financing gap. I only hope to learn more and work with more CDFI groups in the future as I support clients purchasing and developing great real estate. 🌍🤝 #CommercialRealEstate #CDFILenders #InclusiveGrowth #EconomicDevelopment #CommunityFinance #RealEstateInvesting
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Last month, enterprise lending CDFIs received a significant funding boost with the announcement of two new programmes from the British Business Bank and JPMorganChase. CDFIs are tailored for individuals and businesses with limited access to mainstream financial services. With a relationship-based approach to lending, they take the time to understand each borrower’s unique needs and circumstances, going beyond numbers and credit scores. This approach results in stronger connections and enables a more comprehensive evaluation of loan applications, considering the full picture of each business and the customers they serve. 🌱 Our Community Investment Enterprise Fund (CIEF) provides debt finance to Community Development Finance Institutions (CDFIs), helping to support small businesses that are unable to access traditional banking solutions. ➡️ Swipe to discover how CDFIs are making a difference by lending to underserved communities across the UK. #SustainableFinance #SocialImpactInvestment
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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
What is a CDFI?
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🏛️ 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
What Credit Unions Need to Know About the CDFI Fund’s New Strategic Direction for 2025 and Beyond
cucollaborate.com
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#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
Understanding CDFI Financial Data: A Primer for New Investors
https://www.frbsf.org
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📢 CDFI Fund Releases Updated Guidance on Certification Application 📢 Attention CDBA Members: The CDFI Fund recently released updated guidance, FAQs, and a new timeline for early submission of the CDFI Certification Application. These revisions reflect feedback, including recommendations from CDBA, on crucial aspects of the certification process. Key updates include: ◉ Home Equity Lines of Credit (HELOCs) now count as exceptions for mortgage loans under responsible financing standards. ◉ Two new Target Market methodologies: Housing Unit Income Restrictions and Legal Guardianship/Caretaker. ◉ Adjusted timelines for non-metropolitan Custom Investment Areas. ◉ Revised guidance on income qualifications for Low-Income Targeted Populations (LITP). ◉ Updated CDFI Certification Agreement template for applicants. ⏳ Early Submission Window: Organizations can now reapply between October 28, 2024 – January 6, 2025. Early applicants whose applications are not recertified will remain in a grace period until December 31, 2025. For more information and to review the updates, visit the CDFI Fund website at cdfifund.gov/cdficert. #CDFI #CDFICertification #CDBA #CommunityBanking #FinancialInclusion #ImpactFinance #CDFIFund
CDFI Certification
cdfifund.gov
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Treasury Highlights CDBA Member Banks Driving Economic Growth in Underserved Communities The U.S. Department of the Treasury highlighted several CDBA member banks for their leadership in advancing economic opportunity through the Emergency Capital Investment Program (ECIP). These banks were part of a coalition that lead the way in forging public-private partnerships that bring essential capital to underserved rural and urban communities. Member banks like First Independence Bank, Asian Bank, Locus Bank, M&F Bank NC, Native American Bank, N.A., Optus Bank, and Southern Bancorp drive Deep Impact Lending, fueling small business growth, expanding access to affordable housing, and supporting critical community services. By leveraging ECIP investments, banks like these empower local economies—whether funding a solar farm in South Carolina, expanding healthcare facilities for Tribal communities, or enabling first-time homebuyers to achieve financial stability. Treasury highlighted their role in addressing economic disparities while fostering sustainable growth in their regions. We are proud to see these banks actively making a difference and creating lasting impacts in underserved markets. Learn more about their work: https://lnkd.in/dV2KJnep #BusinessBanking #CDFI #MDI #ECIP #TreasuryHighlight #CommunityDevelopment #PublicPrivatePartnerships #EconomicGrowth #ImpactBanking
U.S. Department of the Treasury Highlights the Benefits of Public-Private Partnerships for Main Street and Underserved Rural and Urban Communities
home.treasury.gov
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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
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