COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFI's) SHARE A COMMON GOAL OF EXPANDING ECONOMIC OPPORTUNITY
IN LOW-INCOME COMMUNITIES BY PROVIDING ACCESS TO FINANCIAL PRODUCTS AND SERVICES FOR LOCAL RESIDENTS AND BUSINESSES. WHETHER IT’S THE CREDIT UNION DOWN THE STREET OR A NEARBY SMALL BUSINESS LOAN FUND, YOUR COMMUNITY MAY BE HOME TO AN ORGANIZATION KNOWN AS A CDFI.

Beginning in the 1880s when the first minority-owned banks focused on low-income areas, community organizations have developed to provide needed financial services. From the creation of credit unions in the 1930s and 1940s and community development corporations beginning in the 1960s and 1970s, to the more recent emergence of non- profit loan funds in the 1980s, the predecessors to CDFIs sought to better the conditions in these economically underserved markets.

To support the emerging community development financial institutions, the Community Development Financial Institutions Fund, or CDFI Fund, was established by the Riegle Community Development and Regulatory Improvement Act of 1994. The CDFI Fund’s purpose is to promote economic revitalization and community development in low- income communities through investment in and assistance to CDFIs.