What is a CDFI?
Community Development Financial Institutions (CDFIs) lend money to people and in places where conventional lending is scarce.
They provide access to credit and specialized loan products for people who may not qualify for a typical bank loan but work with the CDFI to establish credit worthiness and long-term plans for financial success. CDFIs also fund development projects in real estate markets that are unproven but are worthy of investment, helping to unleash long-term market potential and revitalize communities.
LISC lent in Toledo’s Hensville, a large-scale redevelopment in the Warehouse District next to the Toledo Mud Hens baseball stadium.
What is the Ohio CDFI Network?
Ohio’s CDFI Network works to raise awareness of CDFIs in Ohio, build relationships between CDFI professionals and other potential partners, and connect CDFIs to potential deals.
In September 2018, GOPC released Building Assets: Ohio’s CDFI Industry. This report analyzed the impact of Ohio’s 18 CDFI loan funds and recommended that:
CDFIs should strengthen the ecosystem they work within
CDFIs should work to educate partners and local banks of their work
CDFIs should adopt the mindset they are uncovering latent markets, rather than responding to markets
Maximum CDFI impact can be found when vibrant community institutions are present, like banks, competent real estate developers, supportive community groups, and dynamic business and city leaders. Ohio’s CDFIs have asked GOPC to steward and staff this network.