Demand for CDFI financial products has increased significantly in recent years, with more than 70 percent of institutions reporting rising demand.
CDFIs are exploring secondary markets as a way to recycle capital, manage risk, and scale lending.
Loan sales into secondary markets have grown, reaching at least $14 billion in 2022, with most activity concentrated in residential real estate lending.
Expanding access to liquidity through mechanisms such as the proposed Scaling Community Lending Act could further strengthen CDFI capacity.