Understanding Community Development Financial Institutions and their Impact in Low- and Moderate-Income Neighborhoods

Abstract

Community Development Financial Institutions (CDFIs) are mission-driven lenders that create economic opportunity for low-income communities and individuals throughout the United States. The history of CDFIs dates back to the 1970s. There are currently over 1,100 operating as banks, credit unions, nonprofit loan funds, and venture capital funds. CDFI financing leads to the creation of jobs, affordable housing, community facilities and more. This issue of the Community Development Innovation Review is a collection of research papers designed to expand our understanding of CDFIs and their impacts in vulnerable communities across the country.