“CDFI” is short for “Community Development Financial Institution”. A CDFI is a specialized financial institution that works in market niches that are underserved by banks and other traditional financial institutions.
CDFI’s provide a range of financial services in their target areas, including mortgage financing for home buyers, financing for the rehabilitation of rental housing, financing for the building and rehabilitation of community facilities, commercial loans to small- and micro-enterprise businesses, and financial services needed by low-income consumers.
CDFI’s include Community Development Banks, Credit Unions, Loan Funds, and Venture Capital Funds. CDFI’s are certified and supported by the U.S. Department of Treasury’s CDFI Fund, whose mission is to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities throughout the United States.