A
distinction that is sometimes missed when talking about CCV is that we are a certified
Community Development Financial Institution (or CDFI) in addition to operating
as a non-profit organization. So again,
what is a CDFI? A CDFI is
an entity that provides needed financial services to communities and
individuals who lack access to dollars necessary for job creation and business
development. CDFIs focus specifically on
economically disadvantaged markets and underserved communities. CCV’s focus is on women-owned businesses,
minority-owned businesses and businesses located in low to moderate income
communities. By directly investing in these communities, CDFIs are able to
trigger economic activity and community development. Newsweek recently wrote an excellent article discussing the tremendous power
CDFIs possess. While the article is
focused on the sub-prime lending crisis, it speaks to the need for CDFIs on a
larger scale. The article goes on to
applaud CDFIs as being able to “manage risk properly” and citing that “they
haven’t bankrupted their customers or their shareholders. Nor have they rushed to Washington begging for bailouts.” CDFIs are
part of a large and growing industry. There are currently 800 – 1000 CDFIs and other opportunity finance institutions open in the United States. The Opportunity Finance Network estimates that as of the end of
fiscal year 2005 CDFIs had accomplished: Here in Chicago there are other
CDFIs aside from Chicago Community Ventures that each have a different
focus. Here is a list of some of our
partner institutions who are also CDFIs: One way to
think about CDFIs is that we act as the bridge between lenders and individuals
who lack access to what traditional banks offer. It is certain that as our country continues
on the road towards economic recovery, CDFIs will play an instrumental
role. If
you are interested in learning more about CDFIs check out the U.S. Treasury’s
CDFI Fund, the CDFI Coalition as well as the Opportunity Finance
Network.
Comments