CDFi

CDFI stands for Community Development Financial Institution. CDFI is a designation awarded by the U.S. Department of the Treasury to specialized financial institutions that serve low-income individuals and communities. These institutions operate in markets that lack access to conventional financing, often due to factors like poverty, underinvestment, or geographic isolation. CDFI certification signifies that an institution meets specific criteria related to its mission, accountability to residents of its target community, and the provision of financial products and services. They can take various forms, including banks, credit unions, loan funds, venture capital funds, and microloan funds. The primary goal of a CDFI is to promote economic revitalization and community development. They achieve this by providing affordable loans, technical assistance, and financial education to individuals, small businesses, and non-profit organizations that might otherwise be unable to access capital. By offering these services, CDFIs help create jobs, support entrepreneurship, and improve housing opportunities in underserved areas.