CDFIs

CDFI certification could help new financial institutions meet capital requirements

Written by Tom Feltner on April 7, 2010 - 12:00am

Since funding from the CDFI Fund is an extremely competitive process, and it is important that resources be directed to those organizations best able to use of funding to meet the financial needs of low-wealth communities, Woodstock proposes that additional criteria be included to ensure that new financial institutions applying for funding have, as their primary purpose, the financial needs of low-wealth people.

 

These criteria could include:

New initiatives keep families in their homes through foreclosure and beyond

Keeping families in their homes during and after the foreclosure process mitigates the negative impact of vacant properties on communities, reduces lenders’ costs in securing and maintaining properties, and provides stability for families as they figure out the next stage of their lives. A number of promising public, private, and nonprofit models are being tried throughout the country to stabilize communities by keeping families in their homes.

Credit to the community: proposals offer new funding source for CDFIs, expand SBA express program

Community development financial institutions, or CDFIs, play a key role in providing financing to small businesses, particularly those in traditionally underserved communities that have been hit hardest by the crisis.

Community development lenders face challenges raising capital

 
CDFIs promote economic development in struggling urban and rural areas that are underserved by traditional financial institutions and include community development banks, credit unions, loan funds, venture capital funds and microenterprise loan funds.

Expanding the Reach of Our Prosperity

Written by Dory Rand on January 21, 2009 - 10:50am
As the President noted, “our economy is badly weakened, a consequence of greed and irresponsibility on the part of some….Homes have been lost; jobs shed; businesses shuttered.” Part of our government’s response to this crisis has been to allocate billions of public dollars to financial institutions, with little or no strings attached regarding how the money will be spent. Going forward, those institutions receiving public dollars must “be held to account – to spend wisely, reform bad habits, and do our business in the light of day….”

TARP for CDFIs? As some banks scale back lending, Woodstock calls for federal money for community-based lenders

Written by Tom Feltner on January 12, 2009 - 6:05pm
The Emergency Economic Recovery Act of 2008 gave the Treasury Department broad authority to support major financial institutions by purchasing distressed assets, bolstering capital and catalyzing lending in response to the current fiscal crisis.
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