Capital Absorption Opportunity · Community lenders
Community Development Financial Institutions (CDFIs)
Definition
A community development financial institution (CDFI) is a lender or investor, other than an individual or a government agency, whose primary mission is community development, that serves a defined investment area or targeted population and stays accountable to its residents.[1] For a borrower or project, a CDFI is a source of loans, equity and development services from an institution organized to serve that community.
Federal law
- Riegle Community Development and Regulatory Improvement Act of 1994, title I, subtitle A (Community Development Banking and Financial Institutions Act of 1994), Pub. L. 103-325, title I, §§ 102–104, 108 Stat. 2160, 2163–2165. Defined "community development financial institution" (§ 103, 12 U.S.C. § 4702) and established the CDFI Fund (§ 104, 12 U.S.C. § 4703). Official text: govinfo.gov, U.S. Government Publishing Office.