CDFIs and Banks: Natural Partners

CDFIs and banks are natural partners whose complementary strengths expand access to capital and financing for community development. Banks provide significant financial resources, liquidity, and scale, while CDFIs contribute deep local knowledge, specialized underwriting, and strong relationships in communities that may be harder for traditional institutions to reach. This collaboration allows banks to deploy capital more effectively in underserved markets, while CDFIs help ensure financing is structured in ways that meet local needs.

The following stories illustrate how banks and CDFIs combine liquidity, balance sheet strength, and community-rooted underwriting to deliver financing that reaches underserved markets while maintaining strong performance and accountability. The stories describe collaborative investments in rural Appalachian Kentucky that expanded healthcare access and created jobs after a hospital closure and a $25 million bank investment expected to support up to $250 million in small business financing nationwide.

Annual Impact: Banks provide an estimated $15–$25 billion annually in capital to CDFIs.