Community Development Financial Institutions (CDFIs) are mission-driven establishments with the main goal to support underserved communities in economic development and financial opportunity. This consists of financial assistance to both individuals and businesses through community banks, credit unions, loan funds and venture capital funds.
The Riegle Community Development and Regulatory Improvement Act of 1994 established the CDFI Fund and official CDFI Certification through the Department of Treasury. Certified CDFIs are recognized for their prioritization of promoting community development, specifically providing “financial services in low-income communities and to people who lack access to financing.” Certified CDFIs are eligible to apply for programs and awards through the CDFI Fund.
While regulated on the federal level, these institutions bridge the gap between public and private even at the local level.
National League of Cities
By: Safaya Fawzi
September 2, 2025