CDFI Products and Services

History
Helping Low-Income People
CDFI Products and Services
Sources of Funding
CDFIs and Mainstream Financial Institutions
CDFI Fact Sheet

CDFI Products and Services

CDFIs supply the tools enabling economically disadvantaged individuals to become self-sufficient stakeholders in their own future.These tools include providing financial services, loans, and investments; offering training and technical assistance services; and promoting development efforts that enable individuals and communities to effectively use credit and capital. Rebuilding disinvested communities and making loans to people with limited or poor credit histories requires more than simply providing access to conventional loans. It requires the flexibility to adapt lending guidelines to the needs of borrowers; to accept unconventional collateral for loans; and to provide education, training, and assistance to potential borrowers.

CDFIs conduct a wide range of financial activities. Community development credit unions and community development banks supply underserved communities with traditional retail banking services like savings accounts and personal loans. Microenterprise development loan funds provide small amounts of business capital to small scale entrepreneurs.

Community development loan funds lend to build businesses, affordable housing and community facilities. Community development venture capital funds provide equity and management expertise to small, often minority owned businesses that promise rapid growth. CDFIs rebuild local economies by increasing the ability of ambitious entrepreneurial people to act in their own economic self-interest.