The Community Development Financial Institutions Fund (CDFI Fund) promotes economic revitalization in distressed communities throughout the

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by providing financial assistance and information to

community development financial institution A community development financial institution (US) or community development finance institution (UK) - abbreviated in both cases to CDFI - is a financial institution that provides credit and financial services to underserved markets and populations ...

s (CDFI). The CDFI Fund was originally established as an independent government corporation through the Riegle Community Development and Regulatory Improvement Act of 1994. Congress promptly moved the CDFI Fund under

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in a 1995 reconciliation bill. Financial institutions, which may include

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credit unions A credit union is a member-owned nonprofit cooperative financial institution. They may offer financial services equivalent to those of commercial banks, such as share accounts (savings accounts), share draft accounts ( cheque accounts), credit ...

, loan funds, and community development venture capital funds, can apply to the CDFI Fund for formal certification as a CDFI. In March 2025,

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issued an

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that directed that the CDFI Fund be eliminated "to the maximum extent consistent with applicable law", along with several other agencies.

History

As of September 1, 2005, there were 747 certified CDFIs in the U.S. The CDFI Fund offers a variety of financial programs to provide capital to CDFIs, such as the Financial Assistance Program, Technical Assistance Program, Bank Enterprise Award Program, and the New Markets Tax Credit Program. One of the oldest nonprofit loan funds in the United States, Enterprise Community Loan Fund - a subsidiary of Enterprise Community Partners has loaned more than $725 million to help build or renovate 91,000 affordable homes. They also offer local funds in Atlanta, Louisiana, Los Angeles, and New York City. Other, larger nonprofit loan funds have typically invested nearly $2 billion per loan fund (as of 2017) including Low Income Investment Fund, Boston Community Capital, Reinvestment Fund, Capital Impact Partners, Local Initiatives Support Corp and

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. Within the field, only a handful of CDFIs have achieved an investment grade rating from Standard & Poor - including Local Initiative Support Corp, Reinvestment Fund, Capital Impact Partners. In 1998, City First Bank was certified as Washington, DC's first CDFI bank. Since then, and as of December 31, 2015, City First has channeled over $1 billion of capital into low and moderate income communities. $422 in New Markets Tax Credits have helped to build institutions such as THEARC in southeast DC where over 80% of the students qualify for free or reduced lunch; and the Atlas Performing Arts Center, making arts accessible to all on the now burgeoning H Street in northeast DC. Loans towards small businesses, affordable housing, educational facilities, the arts, and health centers have totaled $591, fueling DC's renewed economy and culture.

References

External links

*
Community Development Financial Institutions Fund
in the

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United States Department of the Treasury agencies * 1994 establishments in the United States Government agencies established in 1994 {{US-gov-stub

History

See also

References

External links