What is a CDFI?

The US Department of the Treasury’s CDFI Fund certifies all CDFIs. According to their guidelines, "A certified Community Development Financial Institution (CDFI) is a specialized financial institution that works in market niches that are under-served by traditional financial institutions. " CDFIs provide a unique range of financial products and services in economically distressed target markets, such as mortgage financing for low-income and first-time homebuyers, financing for and not-for-profit developers; flexible underwriting and risk capital for much needed community facilities; and technical assistance, commercial loans, and investments to small start-up or expanding businesses in emerging marketslow-income areas. CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan and venture capital funds."