ABSTRACT
Community Development Financial Institutions (CDFIs) are community-based organizations that provide credit for communities not served by banks or credit unions. CDFIs are diverse in products and mission (Benjamin, Rubin, and Zielenbach 2004). Many offer transforming services—in addition to credit—such as regional business strategies, workforce training, business counseling, and homeownership and financial education. In a tighter funding environment, many CDFIs have been shifting their focus from communities to lines of business where they can break even. This may mean providing credit at the expense of transformational services. This potential shift raises questions about the value CDFI credit brings to a community and whether CDFIs need to refocus their mission and program design.
