Closing Lending and Resource Gaps among CDFIs is Necessary to Ensure Financial Inclusion for Communities of Color
June 30th, 2021
By: Diane Standaert, Kiyadh Burt, Sara Miller
June 30, 2021
While Community Development Financial Institutions (CDFIs) are mandated to serve low-income communities, this alone has not been sufficient to ensure CDFI lending reaches into communities of color. This brief documents disparities in CDFI reach into communities of color, as well as disparities in capitalization of CDFIs by minority leadership. In short, minority-led CDFIs are disproportionately undercapitalized relative to their representation in the industry as a whole and relative to the needs of the communities they serve. Increasing private, philanthropic, and public investments in CDFIs with strong track records of serving borrowers and communities of color is a critical strategy to opening pathways for economic opportunity.
Read the full brief here.