What exactly is a CDFI?The Four Sectors for the CDFI Industry

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: