Four VC funds awarded CDFI funding

Following reforms to the Community Development Financial Institution (CDFI) application process, four of the five venture capital funds that applied for CDFI financial assistance funding in FY 2017 were awarded. In trying to increase the impact of CDFIs by supporting their growth, reach and performance, the Fund implemented reforms to the application, making it easier for CDFIs to demonstrate their impact with an award regardless of what type of financial institution they are — they can be banks, credit unions, loan funds, microloan funds or venture capital providers. The four VC funds that received awards were Fund Good Jobs, Kentucky Highlands Investment Corporation, Launch New York, Inc. (which is also newly certified this year), and National Community Investment Fund. In total, the last round saw more awardees overall than ever before in the history of the CDFI Fund.

The CDFI Fund works to promote economic revitalization and community development through mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities, and invests federal dollars alongside private sector capital. From the establishment of the CDFI Fund in 1994, there are now 1,000 CDFIs operating nationwide.

In looking at CDFI investments over time, business investment has consistently remained a top activity, trading the top place with consumer investment since 2007, but comprising the plurality of investment from 2013-2015. In 2015, CDFI investment in business activity was at $819.4 million, down from a high of $998.7 million in 2014.

For information on applying to obtain CDFI certification, click here.