First Independence Bank opened its doors on May 11, 1970. They have served the banking needs of the Detroit Metropolitan area for over 50 years. First Independence Bank is noted as the seventh largest African American owned banking institution in the country, remain one of two banks headquartered in the City of Detroit, as well as the only African American‐owned bank headquartered in the State of Michigan. In addition to providing a full range of financial services, the CDFI provides affordable home improvement loans in distressed urban areas. Read more about First Independence Bank...
Based in Nashville, Pathway Lending is a CDFI focused on providing underserved small businesses in Tennessee with the capital and educational services they need to grow and succeed. Since its establishment in 1999, the CDFI has made more than 915 loans totaling nearly $150 million and provided more than 32,000 hours of business advisory services. Read more about Pathway Lending...
The Housing Fund finances affordable housing and neighborhood revitalization projects across Middle Tennessee. Since its incorporation in 1996, the CDFI has lent over $66 million, which in turn has leveraged over $400 million in private financing to support more than 4,300 units of housing for low and moderate income families.
The Local Enterprise Assistance Fund (LEAF) aims to promote human and economic development by providing financing and development assistance to cooperatives and social purpose ventures that create and save jobs for low-income people. To date, LEAF has invested and leveraged over $106 million, resulting in the creation or retention of more than 7,800 jobs. The CDFI is just one of three in the U.S. with a focus on supporting cooperative enterprises.
A Yes Special Report...In the poorest region of the nation’s poorest state, a tiny government program keeps money flowing through mom-and-pop financial institutions in the Mississippi Delta—changing lives....read more
Based in Atlanta, Georgia Cities Foundation focuses on supporting the revitalization of underserved downtown areas. Since its designation as a CDFI in 2010, the nonprofit has provided more than $21 million in loans to 123 projects credited with catalyzing 253 new businesses, creating 1,386 jobs, and leveraging an additional $101.2 million in private investments.
This report from the Opportunity Finance Network details how community development financial institutions (CDFIs) can support quality job creation as a way to reduce income inequality. Noting that this approach is currently underutilized in the field, the report draws on five case studies of CDFIs that are using tools such as debt and equity products, interest rate reductions, and technical assistance to not only grow small businesses, but ensure access to quality jobs for low-income communities. The report makes recommendations for how to scale this approach in the CDFI field.
Based in Denver, Colorado Housing Assistance Corporation (CHAC) strives to ensure that low and moderate income state residents can afford housing and achieve successful homeownership. Since its founding in 1982, CHAC has helped more than 7,500 first-time home buyers with down payments and closing costs, and prevented nearly 1,000 families from foreclosure.
Based in Denver, Colorado Enterprise Fund (CEF) provides loans to small and emerging Colorado businesses unable to secure traditional bank financing. Since its establishment in 1976, CEF has made more than 1,800 loans totaling $54 million, investments credited with creating or retaining more than 16,000 jobs.
This Community Developments Insights report describes the U.S. Small Business Administration’s (SBA) Small Business Investment Company (SBIC) program, its role in capital markets, and how financial institutions—including national banks and federal savings associations (collectively, banks)—can use the program to expand their small-business finance activities. This report also describes how the SBA licenses these companies, how they operate and are supervised, and the guidelines they should follow. Finally, this report outlines risks and regulatory considerations of bank investments in SBICs and explains how these investments may receive consideration under the Community Reinvestment Act (CRA).
The information in this report was obtained from a variety of sources, including bankers, non-supervised nancial intermediaries, SBICs’ general partners (GP), trade groups, the SBA’s Of ce of Investment and Innovation (OII), and other parties involved with small business investment companies. Appendix E provides a resource directory for additional program information.