When autocomplete results are available use up and down arrows to review and enter to select.
CDFIs are specialized financial institutions that provide financial products and services to populations and businesses located in underserved markets. These institutions have community development missions and a reputation for lending responsibly in low-income communities. Community banks comprise over 20 percent of the CDFIs in the nation.
Before designation as a CDFI, banks must apply to the CDFI Fund for certification. Among other requirements, a bank must demonstrate a primary mission of community development, serve one or more target markets, provide development services to borrowers in conjunction with financing activities, and maintain accountability to its target market.
The CDFI Fund has proposed revisions to its application and annual certification. Among other provisions, the changes would set an arbitrary APR cap on CDFI loans, prohibit balloon mortgages, and disqualify certain forms of critical Development Services.