CDFIs are lenders funded by the Treasury and banks that prioritize community impact over profit. They want workforce housing, affordable ownership, blight removal, local hiring, realistic budgets, and clear exit strategies. Expect slower approval and more reporting, but they'll fund what banks won't.
They like story more than they like bottom line. What CDFIs want to see, strong application elements are right here. So like workforce housing, affordable ownership, blight removal, meaning like those vacant lots in between, local hiring and neighborhood stabilization. Having realistic budgets is important, meaning like you're not paying contractors 40% returns or profits. Capable team to do this is right there. Exit strategies right there. CDFIs are really good for this type of, type of thing because they like, they like the infill, the smaller multifamily and stuff like that. This is why they have these programs set up to be more about improvement than about profit is because they receive their money from the Treasury Department, banks that need CRA credits, foundations, and institutional impact funds. So they are required to put those into targeted areas for for community development. So, there's a lot more reporting requirements. There's slower process. There's mission alignments that matter. So, in what you're doing, if you're really mission-focused, then a CDFI can work really well.
