Community Development Financial Institution
A Community Development Financial Institution (CDFI) is a specialized organization that provides financial services to underserved communities. CDFIs aim to promote economic development by offering loans, investments, and financial education to individuals and businesses that may not qualify for traditional banking services. They focus on fostering community growth and improving access to capital.
CDFIs can include various types of institutions, such as community banks, credit unions, and loan funds. They often prioritize funding projects that benefit low-income neighborhoods, support small businesses, and enhance affordable housing. By doing so, CDFIs play a crucial role in building stronger, more resilient communities.