CDFIs and the Capital Markets: Scaling for Impact

Key Takeaways:

• Community Development Financial Institutions (CDFIs) are vital to expanding access to affordable housing, living wage jobs, healthcare, education, and healthy food by providing flexible, low-cost financing in all communities, in particular underserved communities.
• Access to capital is central to CDFIs' impact, and CDFIs help direct investment to people and communities that may be overlooked by traditional financial institutions.
• This report examines how CDFIs are leveraging capital markets to diversify funding sources, scale  impact, and advance industry practices in areas such as pricing, disclosure, investor engagement, and impact measurement.

Demand for affordable housing, small business financing, and community resources continues to grow, increasing the need for capital that can tackle today's affordability challenges. Community development financial institutions (CDFIs) play a critical role in delivering that financing — and new products, investment structures, and participation pathways are creating more opportunities than ever within the sector.

CDFIs and the Capital Markets: Scaling for Impact, developed by Enterprise Community Partners and Local Initiatives Support Corporation (LISC), brings together market trends, product data, disclosure practices, and investor perspectives in a single resource, helping practitioners and investors alike better understand and navigate the evolving CDFI landscape.

Download the report to learn how:

• Access to capital markets and impact investors has evolved over the past decade.
• New products, investment structures, and participation pathways are expanding investment opportunities.
• Greater transparency is making investment opportunities easier to understand and compare.
• Better information can support broader participation across the CDFI investment landscape.
• Expanded access to capital can help CDFIs reach more people and places.