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Community Development Financial Institutions create jobs & economic development
Posted By Sadaf Knight On December 17, 2012 @ 10:22 am In Uncategorized | Comments Disabled
Today The Support Center  released a new report titled “Community Development Financial Institutions in North Carolina: Creating Jobs and Community Economic Development ,” which looks at the role of Community Development Financial Institutions (CDFIs) in North Carolina’s economy. CDFIs were established in the 1990s under the US Department of Treasury’s CDFI Fund. These community-based financial institutions provide loans and financial services aimed at revitalizing the nation’s underserved and distressed communities. In North Carolina, there are 17 CDFIs including 10 loan funds, five credit unions, one venture capital fund, and one bank. CDFI banks and credit unions provide affordable personal and business financial services to those who might not be able to access these services through traditional banks. CDFI loan and venture capital funds expand access to capital for small businesses, microenterprises, commercial and residential real estate development (including affordable housing), home purchases, and consumer loans.
As traditional banks pull back from lending, tighten their lending standards, and close down many of their branches, CDFIs have stepped in to fill the gap. In 2010, the 17 CDFIs in North Carolina helped to finance 33,000 businesses and developments that have created 3,100 jobs across the state. CDFIs also provide technical assistance and financial literacy training to help their members and borrowers improve their financial management skills in the long-run.
These services are more important now than ever before, as CDFIs provide a vital link to financial services, capital, and financial literacy that help to improve the financial and economic security of individuals and families in underserved communities. CDFIs not only support the businesses that create much-needed jobs for our state, but they also serve as generators of community economic development.
The report also found that:
The full report can be downloaded here .
Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org
URL to article: http://pulse.ncpolicywatch.org/2012/12/17/community-development-financial-institutions-create-jobs-economic-development/
URLs in this post:
 The Support Center: http://thesupportcenter-nc.org/
 Community Development Financial Institutions in North Carolina: Creating Jobs and Community Economic Development: http://thesupportcenter-nc.org/downloads/CDFIs%20In%20North%20Carolina.pdf
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