Program Purpose and Overview
Many communities that are underserved by traditional banks and financial services providers found it harder to obtain credit as the economy began its downturn. Community Development Financial Institutions (CDFIs) exist to provide financing to these communities. In particular, CDFIs focus on providing financial services to low‐ and moderate‐income, minority, and other underserved communities.
Treasury created the Community Development Capital Initiative (CDCI) on February 3, 2010 to help viable certified CDFIs and the communities they serve cope with effects of the financial crisis.
- Treasury created the Community Development Capital Initiative (CDCI) to help viable certified Community Development Financial Institutions (CDFIs) and the communities they serve.
- Under this program, CDFI banks, thrifts, and credit unions received investments of capital.
- CDFIs that participated in the CPP and were in good standing could exchange securities issued under CPP for securities under the more favorable terms of this program.
- Eighty four institutions received investments totaling approximately $570 million.
- Treasury completed funding under this program in September 2010.