A Community Development Financial Institution, or CDFI, is a specialized financial institution that focuses on providing financial services to underserved communities. CDFIs are certified by the U.S. Department of the Treasury and aim to foster economic growth in low-income and economically disadvantaged areas by offering affordable credit, investment capital, and financial services.
CDFIs may be banks, credit unions, loan funds, or venture capital funds. They provide crucial support for small businesses, nonprofits, and individuals who may struggle to obtain traditional financing due to factors such as poor credit history, lack of collateral, or operating in a low-income community.
