Scale Community Development Financial Institutions
- Published Date
- Published By
- Well Being In the Nation Network
Community Development Financial Institutions (CDFIs) are different from normal banks. CDFIs can be federally-certified credit unions, banks, bank holding companies,or loan funds. They give loans to low-income communities, Communities of Color, and other people who don't have access to regular banks. They are not in business just for profits like normal banks. Instead their goal is to support community needs. Some communities need CDFIs because banks do not provide loans to low-income people, because they are too risky. CDFIs fund community projects that lead to more jobs and build up and strengthen the community.