I have watched how CDFIs support small business owners and home owners where banks and credit unions could not. The amount banks charge is often above what people can pay, CDFIs that are nonprofits even the playing field for them by investing in the people and not company profits.
I am a Board Member of a Native American CDFI that serves Wabanaki Tribes and tribal members in Maine. It’s been quite concerning of the number of threats to our services by the Trump Administration. My hope is that these threats are no longer a hinderance to our daily services particularly the issue of federal funding freeze.
As a CDFI, we are able to provide loans and investments to borrowers for projects that improve the quality of life in our community’s low to moderate income census tracts. Frequently, these transactions are not supported by financial institutions directly under competitive terms and conditions that we as a CDFI can make.