#24: CDFIs Are Changing The World. Will You Join Them?

Community Development Financial Institutions (CDFIs) were created to deliver responsible, affordable lending to help low-income, low-wealth and other disadvantaged people and communities join the economic mainstream. CDFIs can’t do this work alone. They are your partners in community development, not your competition! CDFIs make loans that you can’t make due to regulatory constraints, which makes them excellent partners. Reach out to your local CDFI and consider the vast array of partnership opportunities, including:• Instituting a loan referral program (formal or informal arrangements)• Serving on a loan approval or fundraising committee• Helping CDFIs refine their loan underwriting policies and procedures• Developing secondary market vehicles or programs• Assisting in marketing financial services, including the development of advertising and promotions• Co-collaborating on publications, workshops and conferences• Assisting a CDFI in securing a new loan origination system• Providing loan servicing for free or a reduced rate • Providing merchant services or other banking services• Partnering on a New Markets Tax Credit ProjectQuotes• “Community Development Financial Institutions or CDFIs are well-positioned to aid in COVID recovery in partnership with banks. There are so many different ways that banks can partner with CDFIs to do innovative work and to deploy capital in disadvantaged communities.” (1:12-1:32)• “[Referrals] are a very, very key way that you can partner with a CDFI to the extent that you can’t extend a loan to a small business, for example, but with proper permission can refer it to a CDFI. You get to keep the deposits and the relationship, then hopefully the CDFI will serve the small business by building their acumen and financial skills and then allowing them to access credit, so that eventually they’ll come back to the bank when they are bankable.” (2:09-2:43)LinksCDFI Fund: https://www.cdfifund.gov/Opportunity Finance Network: https://ofn.org/CRA Today Website: https://cratoday.com/ For more information on the CRA Hub, a membership for bankers to connect, inspire, and master the art of CRA: https://cratoday.com/hub/ Copyright © 2021 by CRA Today LLC(No claim to original U.S. government material)All rights reserved. No part of this podcast may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.This podcast is a periodic publication of CRA Today LLC and is intended to notify and inspire recipients of new developments in the Community Reinvestment Act. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.Podcast production and show notes provided by FIRESIDE Marketing: https://meetfireside.com/podcast-production-service/