Community Development Financial Institutions: Providing Capital for Revitalization
A recent article from the Federal Reserve Bank of Atlanta gives an overview of Community Development Financial Institutions (CDFIs), and how they work to help revitalize communities by providing capital.
The article, written by visiting scholar to the Atlanta Fed's community and economic development program Donna Gambrell, notes these facts:
- CDFIs are financial institutions that have a primary mission of community development
- they serve targeted markets and are accountable to their communities
- their primary customers are low-wealth residents
- there are currently 875 CDFIs nationwide, with at least one in every state
- reports show that CDFIs are effective, resilient, and a reliable resource for capital in areas that need it the most.
Referenced in this article are 2 recent reports that analyze the impact of CDFIs and compare them to more mainstream financial institutions. Significant impact has been achieved by several CDFIs around the country, including the Florida Community Loan Fund.
Read the full article on the Florida Reserve Bank of Atlanta website.
