Community development financial institutions (CDFIs) are mission-based lenders who provide affordable and flexible financing to underserved communities that mainstream lenders don’t traditionally reach or fund. CDFIs create access to capital for individuals and small businesses and finance quality affordable housing and impactful redevelopment projects that support neighborhood revitalization. CDFIs create economic opportunities for all.
CDFIs are certified by the CDFI Fund, a division of the U.S. Department of Treasury.
Across Michigan, people want to invest in their communities, but their project or business doesn’t qualify for traditional financing. Others want to start a new business or grow an existing one to the next level, but they can’t access traditional bank loans. Families want to purchase a first home, but they don’t have the money for a down payment or the credit score to access a traditional mortgage.
CDFIs are an essential building block for supporting these businesses, families, and projects in communities across Michigan when others won’t. CDFIs look beyond appraisals and credit scores to see a more holistic view of a person, business, or project when determining funding options. For businesses, they might also offer support services including business planning, financial analysis, and partner connections to help businesses launch and grow.
Then, once they are ready, they will have the stability and track record to work with a bank or traditional lending institution.
CDFIs provide affordable and flexible financing when borrowers are unable to access traditional lenders; expanding access to capital and the resources to grow communities.
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