Community development finance institutions (CDFIs) are private finance institutions which can be 100% aimed at delivering responsible, affordable financing to greatly help low-income, low-wealth, as well as other disadvantaged individuals and communities get in on the financial main-stream.
By funding community businesses—including smaller businesses, microenterprises, nonprofit companies, commercial real estate, and affordable housing—CDFIs spark task growth and retention in hard-to serve areas throughout the country.
CDFIs are lucrative however profit-maximizing. They place community first, not the shareholder. For over three decades, they usually have had a successful track record of creating a direct impact in those regions of America that require it most.
Much like main-stream lenders, many different institutions has emerged to provide the wide range of needs in appearing domestic areas. While they share a typical eyesight of expanding financial opportunity and enhancing the standard of living for low-income individuals and communities, the four CDFI sectors—banks, credit unions, loan funds, and capital raising (VC) funds—are characterized by various business models and appropriate structures:
Community development banking institutions offer money to rebuild economically troubled communities through targeted financing and investing. They have been for-profit corporations with community representation on the boards of directors. Based on their charter that is individual banking institutions are managed by some mixture of the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, any office of this Comptroller associated with the Currency, any office of Thrift Supervision, and state banking agencies. Continue reading What exactly is a CDFI?The Four Sectors for the CDFI Industry