Community Development Financial Institutions Fund

The Community Development Financial Institutions Fund (CDFI Fund) is a bureau of the U.S. Department of the Treasury, established in 1994. Its primary mission is to expand the capacity of a national network of Community Development Financial Institutions (CDFIs) to provide credit, capital, and financial services to underserved populations and communities. Unlike traditional venture capital firms that make direct equity investments into startups, the CDFI Fund operates as a grant-making and allocation agency, channeling resources to financial institutions that, in turn, serve economically distressed areas.

The CDFI Fund offers a range of programs designed to foster economic growth and community development. Key initiatives include the CDFI Program and Native Initiatives, which provide financial and technical assistance awards to certified CDFIs; the New Markets Tax Credit (NMTC) Program, which allocates tax credit authority to Community Development Entities (CDEs) to attract private investment into low-income communities; the Capital Magnet Fund (CMF), which provides grants to CDFIs and non-profit housing developers for affordable housing and community development; and the Bond Guarantee Program, which guarantees bonds issued for eligible community development projects. These programs empower local lenders, credit unions, loan funds, and community development venture capital funds to address critical capital gaps.

Since its inception, the CDFI Fund has played a crucial role in strengthening the financial infrastructure of underserved communities across the United States. As of early 2024, the CDFI Fund has awarded more than $7.9 billion to CDFIs and other organizations across all 50 states, the District of Columbia, and U.S. territories. In fiscal year 2023 alone, the CDFI Fund awarded $204.3 million through its CDFI Program and Native Initiatives to 312 organizations, demonstrating its significant and ongoing commitment to fostering economic opportunity in areas often overlooked by conventional financial markets. The 'check sizes' for the CDFI Fund refer to the range of awards and allocations it provides to its partner institutions, enabling them to then deploy capital within their communities.