The shift in business models among banks and credit unions—along with ongoing consolidation and the retreat from rural markets—has left a growing number of entrepreneurs without access to traditional financing. In response, MoFi and other CDFIs have become critical entry points for future bank customers.
I support CDFIs because they provide needed capital for small businesses and first-time homebuyers. This capital allows people to build wealth and/or provide a product/service to their community, which leads to economic prosperity for the local area. Because the financing is provided as a loan, clients are equally invested in the success of their home/business.
CDFIs have been a vital role in our community by providing low-cost capital to businesses. Capital is not readily available in the rural area I live, so it’s imperative that CDFIs continue to receive funding that helps support small businesses and continue to grow small communities.