Community Development Financial Institutions: Providing Capital, Building Communities, Creating Impact

This report, a part of the Community Development Financial Institutions (CDFI) Data Project (CDP), documents the work of 496 CDFIs in 2005.

Serving niche and underserved markets in the United States, CDFIs have retained their focus on strong financing performance. They invested US $4.3 billion in 2005 to create economic opportunity in terms of new high-quality jobs, affordable housing units, community facilities and financial services to low-income people.Achieving social and economic benefits aligned with their institutional missions, CDFIs deliver a range of products from financing to training, advocacy and research. The report states that:

• Banks view CDFIs as key partners to increase their market penetration in low-income communities;
• Substantial diversity exists within the staff and boards of CDFIs;
• CDFIs that operate in a rural environment face unique challenges and opportunities related to their strategy, operations and capitalization.