Many urban and rural communities throughout the country lack the capital and resources necessary to create opportunity and promote growth. The community development financial institution (“CDFI”) industry has focused on filling this gap by investing extensively in these communities to improve their economies, physical environment and the financial well-being of residents. In many ways, CDFIs have been pioneers of promoting progress by investing for social impact.

CDFIs are private intermediaries that provide capital and technical assistance to communities and people underserved by conventional lending institutions. CDFIs take a number of forms and supply a variety of financial services and capital. Community development credit unions and banks provide retail banking services and investments, loan funds provide financing and technical assistance across a range of economic and community development activities, and venture funds provide equity and equity-like debt to small- and medium-sized businesses.

CDFIs operate in all 50 states, Puerto Rico, the District of Columbia and the territories. As of July 31, 2017, 1,134 CDFIs were certified by the Community Development Financial Institutions Fund (“CDFI Fund”). Of these, 575 were loan funds, 316 were credit unions, 139 were banks or thrifts, 87 were depository institution holding companies and 17 were venture capital funds. Roughly 6% of the total, 73, were Native CDFIs.