News

United States: Native CDFIs Connect Indian Country to Credit and Capital

Source: Federal Reserve Bank of Minneapolis

Community economic development requires access to the capital and credit needed to produce goods and invest in infrastructure. In Indian Country, however, insufficient access to credit and financial services is well-documented. These gaps limit the availability of loans for business start-ups and expansion, home mortgages, home repairs, consumer purchases, and other needs. Even where traditional banks operate in or near Native communities, they may lack understanding of the local culture and complexities of providing financial services in Indian Country. Native Community Development Financial Institutions (CDFIs) emerged to help address credit and capital challenges and provide Native communities and residents with an alternative to mainstream banks.