Financial Institutions and Corporations

At the heart of programs in this category is a desire to support economic initiatives and community development in low-income and underserved communities. These efforts often include the development and/or support of affordable housing. There are two primary vehicles of financing in this category: Community Development Financial Institutions (CDFIs) and Community Development Corporations.

There are four primary types of CDFIs:

• Community development banks, 
• Community development credit unions, 
• Community development loan funds (CDLF), and 
• Micro-enterprise Lenders.

Both community development banks and credit unions operate like their commercial counterparts, while CDLF and micro-enterprise lenders often offer grants or small-scale (micro) loans. All four types are considered nonprofit, and all offer a variety of programs. A CDFI might focus its efforts on housing issues, and provide personal assistance programs such as residential mortgages or larger affordable housing developments. Or, the CDFI may support community development initiatives and offer grants and loans to small businesses that operate within its service area.

For more information on CDFIs, visit the Coalition of Community Development Financial Institutions Website, which provides additional information and links and listings of CDFI organizations nationally and locally. Also, visit the Foundation Partnership on Corporate Responsibility Website.

Another option to review in this category are community-based venture capitalist organizations. Venture capitalists invest in innovative and/or specific projects in which they are interested. For additional information on the types of financing programs available in this category, check out the Small Business and nonprofit Assistance Programs resource section in Chapter 8: Buying Real Estate.