Community development financial institutions (CDFIs) do more than provide loans; they serve as critical connectors in the financial ecosystem. A new report from the Federal Reserve Bank of Cleveland examines how CDFIs support low- and moderate-income communities in ways that extend well beyond direct investment.
Based on transaction-level data and interviews with 10 CDFI loan funds, the report reveals how these mission-driven lenders fill gaps that traditional institutions often cannot. Valuable reading for economic developers, lenders, and community development professionals.
Key insights include:
- On-the-ground perspectives on how CDFIs serve as catalysts through technical assistance, capacity building, financial coaching, and more
- CDFIs’ role in assembling complex capital stacks and activating private investment
- Real practitioner perspectives on challenges and opportunities in the CDFI space