Community Development Financial Institutions Fund

Overview

The Community Development Financial Institutions Fund (CDFI Fund) is a program of the U.S. Department of the Treasury established in 1994 to promote economic revitalization and community development through investment in Community Development Financial Institutions (CDFIs). The CDFI Fund administers a range of innovative programs designed to strengthen the ability of CDFIs to provide financial products and services to underserved communities. These programs include the CDFI Program, which offers Financial Assistance and Technical Assistance awards to CDFIs; the New Markets Tax Credit Program, which stimulates private investment in low-income communities; and the Capital Magnet Fund, which provides competitive grants to CDFIs and non-profit organizations to finance the acquisition, construction, preservation, and rehabilitation of affordable housing and related economic development efforts. The CDFI Fund's mission is to expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders, investors, and financial service providers. By offering tailored resources and innovative programs that invest federal dollars alongside private sector capital, the CDFI Fund serves mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities. These mission-driven organizations are encouraged to apply for CDFI Certification and participate in CDFI Fund programs that inject new sources of capital into neighborhoods that lack access to financing. Through its various programs, the CDFI Fund has allocated billions of dollars in tax credit allocation authority to Community Development Entities and guaranteed bonds for nearly $3 billion through the CDFI Bond Guarantee Program. These efforts have led to significant investments in low-income communities, supporting the creation of affordable housing, job creation, and economic development projects that contribute to the revitalization of distressed areas across the United States.

Investment Focus

• CDFI Certification
• Mission-driven financial institutions
• Focus on underserved communities
• Ability to leverage federal funds with private sector capital