CDFIs: The old new thing

CDFIs are America’s unsung treasure, financing affordable housing and small businesses where conventional banks have pulled back or never lent. Yet bank consolidation, proposed federal funding cuts and efforts to weaken Community Reinvestment Act incentives threaten their funding.

This article argues that philanthropy should look to these established lenders before creating new vehicles. Their community knowledge and lending experience make them natural partners for foundations seeking to expand access to finance.