CDFIs

Community Development Financial Institutions, or CDFIs, are private financial institutions that are dedicated to delivering responsible, affordable lending to help low-income, underserved, and other disadvantaged people and communities join the economic mainstream. CDFIs include community development banks, credit unions, loan funds, microloan funds, and venture capital funds. They are certified by the CDFI Fund, a program within the United States Department of the Treasury.

To be certified, an institution must meet several criteria. It must be a U.S. based entity, have a primary mission of community development, serve one or more target markets that are low-income or underserved, provide development services in conjunction with its products, and be a financial intermediary. These institutions are crucial for providing access to capital in areas where traditional banks may not operate or offer sufficient services.

CDFIs offer a range of financial products and services, including small business loans, consumer loans, mortgages, and financial education. They often work with individuals and businesses that have difficulty obtaining financing through conventional channels due to factors like poor credit history, lack of collateral, or geographic location. By offering tailored financial solutions and support, CDFIs aim to foster economic opportunity and stability within their communities. Their impact extends beyond financial transactions, often involving technical assistance and business development services to help clients succeed.