CDFIs are critical to our economy. They step in where banks can’t – or wont – go. They leverage hundreds of millions of private dollars every year and invest them in underserved businesses and communities, based on need and impact. This is an effective, efficient public-private solution to pressing social and economic issues throughout our country.
As a Native CDFI, funding from the CDFI Fund provides Native communities with access to capital that would otherwise be unavailable. Due to the complexities of tribal lands, traditional banks do not offer the same financial opportunities. Native CDFIs, supported by the CDFI Fund, are bridging this gap by providing equitable access to capital in ways that were previously unheard of.
Native CDFIs are a critical/integral part of the financing infrastructure in Native communities and they make the most important investments and achieve the most impressive impacts in Native communities. They are directly responsible for enhancing financial literacy/capability, for creating access to capital, for increasing homeownership and building homes, and for providing technical and financial support for entrepreneurs and businesses. Even when traditional banks operate in or near Native communities, they often lack the understanding of the Native culture and complexities of providing financial services in Indian Country. Native CDFIs have emerged to help address the credit and capital challenges and provide Native communities and residents with an alternative to mainstream banks. Our Native CDFI, Four Directions Development Corporation has been a tremendous asset to the Native communities in Maine. We started out with $250,000 in capital in 2002 and over the past twenty + years, Four Directions has lent out over $25 million in capital to first-time homebuyers, new and emerging entrepreneurs and businesses, for tribal community development such as tribal wellness centers, family housing, elder housing and community facilities and infrastructure. Native CDFIs are a fundamental aspect of tribal development, a critical strategic financing partner for building a robust and sustainable economy in Indian communities nationwide.