The Community Development Financial Institutions Fund (CDFI Fund) promotes economic revitalization in distressed communities throughout the

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by providing financial assistance and information to

community development financial institution A community development financial institution (US) or community development finance institution (UK) - abbreviated in both cases to CDFI - is a financial institution that provides credit and financial services to underserved markets and populations, ...

s (CDFI). An agency of the

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, it was established through the

Riegle Community Development and Regulatory Improvement Act of 1994 Riegle is a surname. Notable people with the surname include: *Donald W. Riegle Jr. (born 1938), American author, businessman, US Representative and US Senator from Michigan * Ed Riegle (1924–2003), Canadian professional ice hockey player and co ...

. Financial institutions, which may include

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

credit unions A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provision ...

, loan funds, and community development venture capital funds, can apply to the CDFI Fund for formal certification as a CDFI. As of September 1, 2005, there were 747 certified CDFIs in the U.S. The CDFI Fund offers a variety of financial programs to provide capital to CDFIs, such as the Financial Assistance Program, Technical Assistance Program, Bank Enterprise Award Program, and the

New Markets Tax Credit Program The New Markets Tax Credit (NMTC) Program is a federal financial program in the United States. It aims to stimulate business and real estate investment in low-income communities in the United States via a federal tax credit. The program is admini ...

. One of the oldest nonprofit loan funds in the United States, Enterprise Community Loan Fund - a subsidiary of

Enterprise Community Partners Enterprise Community Partners, formerly The Enterprise Foundation, is a national nonprofit organized around three central goals: to increase housing supply, advance racial equity and build resilience and upward mobility. Founded in 1982 by develo ...

has loaned more than $725 million to help build or renovate 91,000 affordable homes. They also offer local funds in Atlanta, Louisiana, Los Angeles, and New York City. Other, larger nonprofit loan funds have typically invested nearly $2 billion per loan fund (as of 2017) including Low Income Investment Fund, Boston Community Capital, Reinvestment Fund, Capital Impact Partners, Local Initiatives Support Corp and

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. Within the field, only a handful of CDFIs have achieved an investment grade rating from Standard & Poor - including Local Initiative Support Corp, Reinvestment Fund, Capital Impact Partners. In 1998, City First Bank was certified as Washington, DC's first CDFI bank. Since then, and as of December 31, 2015, City First has channeled over $1 billion of capital into low and moderate income communities. $422 in New Markets Tax Credits have help to build institutions such as THEARC in deep southeast, DC where over 80% of the students qualify for free or reduced lunch; and the Atlas Performing Arts Center, making arts accessible to all on the now burgeoning H Street, northeast DC. Loans towards small businesses, affordable housing, educational facilities, the arts, and health centers have totaled $591, fueling DC's renewed economy and culture.

References

External links

*
Community Development Financial Institutions Fund
in the

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United States Department of the Treasury agencies Community development financial institutions 1994 establishments in the United States Government agencies established in 1994 {{US-gov-stub

See also

References

External links